Where to get a personal loan with low income

August 24, 2017
Getting credit of any type can prove difficult for low income earners. The best credit card rates are usually out of reach for those who cannot meet the high-income requirements. Personal loans that require collateral are likewise difficult to obtain.
Where to get a personal loan with low income

Luckily, there are several sources for low income personal loans. Some organizations focus on providing business loans, while others seek to support families or students. Then, there are online personal lenders that do not require a complete credit check. These companies instead look at the applicant's bank statement and pay stub to assess their ability to pay off the loan.

Here are the best options for personal loans for people with low income.

  • Business loan options vary by province. Low income earners with no collateral may be able to qualify for a so-called “micro-loan” of up to $5,000. The Remarkable Micro-Loan Program in British Columbia, for example, offers up to $5,000 to young entrepreneurs who are starting businesses. Kick$tart has a similar offer for new and established business owners in Newfoundland and Labrador. Toronto, Ottawa, Montreal and other major cities likewise have micro-loan options for low income earners with entrepreneurial ambitions.
  • What about personal loans that are meant to help you “get back on your feet,” so to speak, after financial troubles? Various credit unions and community banks may have some sort of options with interest rates that are lower than on the commercial loan market. However, if the amount that you need is less than $1000, perhaps an online personal loan would be the best option. These loans are available to anyone with a paycheck and bank account.
  • The other advantage of online personal loans is that the approval process is very quick. The money could be deposited in your bank account in a matter of hours after you submit your application. On the other hand, you may have to wait for days (or weeks) to gain approval for a loan from a bank.
  • A final option is to see if any grants are available. Grants provide financial support that you do not have to repay. In Canada, grants usually serve a very specific purpose. For example, the Canada Student Grant for Students from Low Income Families provides up to $375 per month of financial assistance to full time university students who meet low income requirements.

For business loans, options from local governments and organizations are usually the best choice. If you do not qualify for some sort of financial assistance through a grant, then an online personal loan may be the best way for you to get back on your feet financially.