Loans for unemployed

Loans for unemployed people do exist, and getting one isn't impossible with the right expertise.

Can you find loans when unemployed?

The term 'bad credit loans' is sometimes used to describe loans for unemployed applicants.

In practice, the two situations may be very different.

The fact that you don't have a regular job doesn’t necessarily say anything about your credit history. It might simply make it a little more difficult for you to show you have a consistent source of income.

The good news is that loans for unemployed people may be available, providing you know which lenders are likely to be sympathetic. That knowledge is important because different lenders have different criteria and not all direct lenders will necessarily offer loans for the unemployed (or some alternative forms of income).

If you don’t have that understanding of who to apply to, it's something that Instant Lolly can certainly help with.

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(It won't affect your credit score)
Representative 669.35% APR (variable)
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How loans for unemployed people work

Your employment status

While lenders are expected to protect their own interests, they also have a regulatory duty of care which obliges them to take all reasonable steps to try and ensure that their customers are borrowing sums that they can actually afford to repay.

This is why your employment status is taken into consideration when you apply for a loan. If you are unemployed, it may mean that you have no regular income by way of salary or wages.

A lender must take your income into account as part of their affordability checks — so, if you don't have a paid job, you will need to have another suitable form of income that you can use to make the scheduled repayments.

Other forms of income

Lenders who specialise in loans for the unemployed in the UK may be willing to recognise a number of other sources of finance you might have even though not in employment. That might include things such as:

  • various forms of benefits, providing these are regular and of a predictable amount;
  • your overall status as part of a family or relationship where other parties have regular income;
  • somebody who can act as a guarantor for the loan.

There are too many various possibilities here to discuss them all. The good news though is that whatever your employment situation, there really are lenders operating in this area that may be able to assist with loans when unemployed, including no guarantor loans, in certain situations.

How unemployed loans are different to bad credit loans

Bad credit loans apply in situations where your credit file contains various types of historic problems. Alternatively, there may be instances where your credit history is just very sparse for reasons such as you having just arrived in or back in the country.

By contrast, it is perfectly possible to be unemployed and living off an alternative source of income, such as a pension, and have an excellent credit history. That can be a significant factor in why some lenders will be happy to advance loans for unemployed people.

Even if you are both unemployed and have credit history issues, you may still be eligible for some forms of direct lender loans for the unemployed, though your options will be very limited.

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(It won't affect your credit score)
Representative 669.35% APR (variable)
View example

Why you'll love Instant Lolly

Flexible borrowing — choose from a large range of short-term and payday loans.

Flexible borrowing

Choose the most suitable loan amount and term for your needs. We provide loans from £100 to £3,000 over 1 to 24 months.

High acceptance — great approval rates for people with good and bad credit.

High acceptance

Fill out one short application form, and we will ensure your details reach all the right lenders for the best chance of approval.

Fast funding — instant decisions and speedy money transfers guaranteed.

Fast funding

Receive a decision in seconds, and get money sent to your bank account as soon as 15 minutes after approval.

Online convenience — access the best UK direct lenders in one place.

Online convenience

Apply securely online 24 hours a day, seven days a week — via mobile, desktop or tablet. Oh, and it's FREE too!

Unemployed? Here's how we can help

Not all UK direct lenders are necessarily receptive to applications for loans from people who are unemployed or on benefits.

It can be demoralising to keep being turned down, particularly if it’s simply because you are speaking to the wrong type of lenders when seeking emergency loans.

This is where we, at Instant Lolly may be able to help. Our expert knowledge and experience will quickly analyse your individual and unique position, then identify lenders that we know are likely to be receptive to your needs.

We can’t guarantee acceptance in advance, but we can make sure that you are speaking at the outset to companies who will give your case serious consideration.

Can I apply?

To apply you must:

  • be at least 18 and a permanent UK resident;
  • receive a regular income, such as a wage, a pension or benefits.

You will also need:

  • a mobile phone and email address;
  • a UK bank account with a debit card.
We respect your privacy and will never use, sell or share your information for marketing purposes.

Not sure if you'll be accepted? Check if you can get your chosen loan (in under 5 minutes)

(It won't affect your credit score)
Representative 669.35% APR (variable)
Representative Example: £250 borrowed for 30 days. Interest charged is £60.00. Total amount repayable is £310.00. Annual interest rate of 292% (fixed).

Important Information

If you do not make your minimum repayment by the agreed upon due date, you may incur additional charges and penalties. If you are having problems paying, please call your credit provider. For other sources of assistance, visit; call the Step Change Debt Charity on 0800 138 1111; or National Debtline on 0808 808 4000; or visit; or visit your local Citizens Advice Bureau.

Loan approval: All loan offers are subject to lender final approval. Approval/transfer times vary by lender. Not all lenders may be able to transfer funds in 15 minutes. Approvals/transfers may take longer for applications processed outside normal working hours. If your bank does not support faster payments, it may take longer for funds to reach your account.

Credit checks: When assessing your eligibility for a loan, lenders will carry out a soft search; only you can see them on your credit report and they have no impact on your credit rating. If you accept a lender's loan offer, they will perform a hard credit search which will be visible to any company searching your credit report for 12 months.

Instant Lolly does not charge customers a fee for using its services, but it receives a commission from lenders or other brokers following an introduction through this website.