Can You Get a Personal Loan While on Disability? Are you presently on disability, and are you looking for a way to get a personal loan? If yes, then you are in the right place. You should know that you may be eligible for a personal loan. But do you know how relaxed it will be depending on the type of disability you are getting and the kind of loan you are looking for?
A personal loan can be given to you when you are getting disability benefits, on the condition that you have adequate income to be eligible for the fund you want and meet other requirements. Keep reading to learn and know more about landing a loan while on disability and how it could impact your monthly benefits.
What is a disability loan?
A disability loan is a type of payment protection that will make payments to your present loan or 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 on disability. 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, age, or the fact 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 Amounts | Interest Rates | Repayment Terms | |
| Best Egg | $2,000 to $50,000 | 8.99% to 35.99% | 36 to 60 months |
| OneMain Financial | $1,500 to $20,000 | 18.00% to 35.99% | 24 to 60 months |
| Upgrade | $1,000 to $50,000 | 8.49% to 35.99% | 24 to 84 months |
| LendingClub | $1,000 to $40,000 | 9.57% to 35.99% | 24 to 84 months |
| Upstart | $1,000 to $50,000 | 6.40% to 35.99% | 36 to 60 months |
| Avant | $2,000 to $35,000 | 9.95% to 35.99% | 12 to 60 months |
| SoFi | $5,000 to $100,000 | 8.99% 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 with no credit check obligatory with 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, or 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,” the 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.
Final Thought
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.
