Can You Get a Personal Loan While on Disability?

Are you currently receiving disability benefits and seeking a personal loan? If so, you’ve come to the right place. It’s important to note that you might qualify for a personal loan. However, the ease of approval depends on the specific type of disability you receive and the type of loan you’re interested in. Read through this article for steps and guidelines on how to apply for a personal loan while on disability.

Can You Get a Personal Loan While on Disability?

What is a Disability Loan?

A disability loan is a type of payment protection that will make payments to your present loan. Or a line of credit for a specified period in case you become disabled and unable to work. It is regularly similar to the loan terms of personal loans, which means they can range in amount from $1,000 to $100,000. On average, these loans have an interest rate that ranges from about 6% to 36%, with a term lasting anywhere from two to seven years.

Personal Loans for People on Disability

A personal loan from the same providers as everyone else can also be given to individuals with disabilities. The same requirements apply, and the same loan amounts and repayment terms are available to everyone. With the Equal Credit Opportunity Act, you can never be singled out because of factors like race, gender, or age. Or the fact that you get public assistance when applying for a loan.

The table below shows some personal loan lenders that can assist you in getting personal loans with or without a disability.

 Loan AmountsInterest RatesRepayment Terms
Best Egg$2,000 to $50,0008.99% to 35.99%36 to 60 months
OneMain Financial$1,500 to $20,00018.00% to 35.99%24 to 60 months
Upgrade$1,000 to $50,0008.49% to 35.99%24 to 84 months
LendingClub$1,000 to $40,0009.57% to 35.99%24 to 84 months
Upstart$1,000 to $50,0006.40% to 35.99%36 to 60 months
Avant$2,000 to $35,0009.95% to 35.99%12 to 60 months
SoFi$5,000 to $100,0008.99% to 25.81%24 to 84 months

Personal Loans for People on Disability with Bad Credit

Although some of the lenders are just after lending money to people with good or excellent credit. You can likewise get personal loans with bad credit. These loans come with higher interest rates and more loans, and loan amounts are inclined to be more limited or on the lower end. Besides, you can apply without a credit check for some personal loans.

The lists below are some examples of lenders that provide personal loans for people on disability with bad credit. They are as follows:

  • LendingPoint.
  • Upstart.
  • Achieve.
  • Upgrade.

How To Get a Personal Loan on Disability

For you to get a loan on disability, you will need to apply for funding just like anyone else. You can get started by doing the following things:

  • Gather information and documents like your Social Security number (SSN), W-2s, driver’s license, recent pay stubs, other identification, and utility bills to prove where you live.
  • Fill out the loan application with information like your full name, address, gross monthly income, phone number, and monthly mortgage or rent payment.

You will list your gross monthly income received through disability along with any other sources of regular income you have where the loan application asks for income.

How Personal Loans Impact Disability Benefits

Applying for a loan will not impact your disability benefits, according to the U.S. Social Security Administration. The loan proceeds won’t count as income and will not affect your Supplemental Security Income if you take a loan and spend it within that month. However, that money will count toward your resource limit if you do not spend all the loan proceeds ($2,000 for an individual and $3,000 for a couple).

You must have a succeeding disability and meet income limits for the SSI program. If you are “insured,” Social Security Disability Income gives benefits. You must have paid enough Social Security taxes on your earnings to be eligible, which means having worked long enough.


So far, you meet the lender’s standards, which means you can get a personal loan while on disability. It means having a good credit score and a reasonable DTI ratio and showing you can repay the amount you want to borrow with your income with SSDI. Do not forget to compare lenders well before you apply, because some of them may provide better rates or loan terms that could save you money in the long term.