How Do You Get a Loan While on Disability?

Millions of Americans live on disability benefits, but what happens if you need money for an emergency and don’t have anyone to borrow from? You may need a loan on top of your disability check, in order to get through it.

What Are Disability Benefits?

Disability benefits are financial aid given to people who can’t work because of a disability. The money usually comes from the Social Security Administration (SSA) or the Department of Veterans Affairs (VA). Disability benefits come in different forms, such as Supplemental Security Income (SSI), Social Security Disability Insurance (SSDI), and Veterans Affairs Disability Benefits (VADB).

Can You Get a Loan While on Disability?

You’re probably asking if you can get a loan on disability check. Yes, it is possible. However, you should be aware that lenders will typically require some form of collateral or guarantee since disability benefits are not always considered as steady and reliable sources of income.


What Are the Requirements for Getting a Loan While on Disability?

The requirements for getting a loan while on disability vary from lender to lender, but generally speaking, you must meet the following criteria in order to qualify:

  • You must be at least 18 years old.
  • You must have some type of steady income, either from Social Security or VA benefits.
  • You must have an active bank account and proof of employment (if applicable).
  • You must demonstrate proof of disability.
  • You must have a good credit score or be able to provide collateral for the loan.


Where Can I Get a Loan While on Disability?

There are several lenders that specialize in loans for those living on disability benefits. These lenders typically offer unsecured loans with lower interest rates than traditional banks and credit unions. Some popular loan options include:

Banks and Credit Unions

Many banks and credit unions offer loans specifically designed for people with disabilities. These usually require proof of income, an active bank account, and good credit history.

Online Lenders

There are also online lenders that offer personal loans for people with disabilities. The requirements and interest rates may vary from lender to lender, so make sure to compare your options carefully before making a decision.

Types of Loans You Can Take Out While on Disability

The type of loan you can take out while on disability depends on your individual circumstances and the lender you choose. Common types of loans may include:

  1. Unsecured Personal Loans – These are short-term loans that don’t require collateral but typically have higher interest rates.
  2. Secured Loans – You offer collateral (such as a car or house) to secure the loan, which can come in the form of an auto loan, home equity loan, or other secured loan.
  3. Payday Loans – These short-term, high-interest loans should be avoided if possible due to their high cost and potential for exploitation.
  4. Veterans Benefits – VA benefits may be used to obtain certain types of loans such as debt consolidation or


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The Pros and Cons of Taking Out a Loan While on Disability

Taking out a loan while on disability can help you get the money you need in an emergency, but it’s important to consider the potential risks before signing any loan agreement.


  • You may be able to obtain financing even if your credit history is less than ideal.
  • Taking out a loan can provide immediate funds and help cover unexpected costs.


  • If you are unable to make loan payments, the lender may seize collateral or take legal action against you.
  • Loans for people on disability often have high interest rates and fees, which could make them more expensive in the long run.
  • You may not qualify for certain types of loans due to your income source.

How to Apply for a Loan While on Disability 

Do Your Research on Potential Lenders

Take the time to research potential lenders and compare interest rates, repayment terms, and other important factors. Make sure you read any reviews you can find online.


The lender you are looking for would have the following:

  • Low-interest rates
  • Flexible repayment options
  • Simple application process
  • Good customer service

Prepare Your Documents

When applying for a loan while on disability, make sure to have all necessary documents and information ready. This includes proof of income, an active bank account, and the required documentation for your particular lender (such as proof of disability).

Complete the Application Process

Once you’ve gathered all the necessary documentation, you can apply online or in-person at a local bank or credit union. Fill out the loan application completely and accurately. Be sure to include any additional relevant information that may help your loan application stand out.


Finally, always be sure to read over the loan contract carefully before signing so that you understand all terms and conditions associated with it.

Final Thoughts

It’s important to do your research before taking out a loan, and make sure you understand all the terms and conditions involved. Loans for people on disability can be a helpful way to get money in an emergency, but it’s important to weigh the pros and cons carefully before signing any agreement.


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