You can get a personal loan when you're receiving disability benefits, provided you have enough income to qualify for the loan amount you want and you meet other eligibility requirements. For example, having good credit and a long history of paying bills on time can help you qualify for a loan regardless of where your income comes from—provided you can prove it. The good news about applying for a loan on disability is the fact that you should have regular statements that can prove how much you receive in disability benefits and how often. Read on to learn what it takes to get approved for a loan while you're receiving disability benefits, how getting a loan can impact these benefits, and some alternatives to consider.

Personal Loans for People on Disability

Individuals on disability can apply for personal loans from the same providers as everyone else. The same eligibility requirements will apply, and the same loan amounts and repayment terms are available to everyone. 

Thanks to the Equal Credit Opportunity Act (ECOA), you cannot be discriminated against based on factors like race, age, gender, or the fact you receive public assistance when applying for a loan.

The chart below includes some personal loan lenders that can help you get personal loans with or without a disability.

	Loan Amounts	Interest Rates	Repayment Terms
Avant	$2,000 to $35,000	9.95% to 35.99%	12 to 60 months
Best Egg	$2,000 to $50,000	8.99% to 35.99%	36 to 60 months
LendingClub	$1,000 to $40,000	9.57% to 35.99%	24 to 60 months
OneMain Financial	$1,500 to $20,000	18.00% to 35.99%	24 to 60 months
SoFi	$5,000 to $100,000	8.99% to 20.49%	24 to 84 months
Upgrade	$1,000 to $50,000	8.49% to 35.99%	24 to 84 months
Upstart	$1,000 to $50,000	7.80% to 35.99%	36 or 60 months

Personal Loans for People on Disability With Bad Credit

While some of the lenders focus on lending money to people with good or excellent credit, you can also get personal loans with bad credit. These loans tend to come with higher interest rates and more loan fees (including origination fees), and loan amounts tend to be more restricted or on the lower end. And with some personal loans, you can apply with no credit check required.

Some examples of lenders that offer personal loans for people on disability with bad credit include:

• Achieve
• LendingPoint
• Upgrade
• Upstart

How to Get a Personal Loan on Disability

To get a loan on disability, you'll apply for funding just like anyone else. You can get started by gathering information and documents like your Social Security number (SSN), recent pay stubs, W-2s, driver's license or other identification, and utility bills to prove where you live. From there, you'll fill out the loan application with information like your full name, address, phone number, gross monthly income, and monthly mortgage or rent payment.

Where the loan application asks for income, you'll list your gross monthly income received through disability along with any other sources of regular income you have.

How Personal Loans Impact Disability Benefits

According to the U.S. Social Security Administration, applying for a loan will not impact your disability benefits. If you borrow money and spend it within that month, the loan proceeds will not count as income and will not affect your Supplemental Security Income (SSI). However, if you don't spend all the loan proceeds, that money will count toward your resource limit ($2,000 for an individual, $3,000 for a couple).

While with the SSI program, you must have a qualifying disability and meet income limits. The Social Security Disability Income (SSDI) pays benefits if you are "insured." You must have paid enough Social Security taxes on your earnings to qualify, which means having worked long enough.

Alternatives to Personal Loans

If you are on disability and you need access to cash, there are alternatives to consider outside of personal loans. Here are a few options:

• Loans from family or friends: Family and friends can be a good, temporary resource for funds when you have some income to pay them back. That said, you'll want to be careful borrowing from people you know and take repayment seriously so you don't damage the relationship.
• Credit Cards: Credit cards can pay for some expenses when you're short on cash, but you should remember that interest rates tend to be high. If you want to use a credit card without interest for a limited time, consider 0% APR credit cards. Just be sure you have a plan to repay the balance before the 0% introductory period ends.
• Savings: Using savings can help bridge the gap in your finances when you're short on funds, but you'll want to make sure you replenish your savings once you have more income at your disposal.
• Home equity products: If you own a home and have considerable equity, you can use your home as collateral and apply for funding with a home equity loan or a home equity line of credit (HELOC).

The Bottom Line

You can get a personal loan while on disability if you meet the lender's criteria. For the most part, this means having a good credit score and a reasonable DTI ratio and proving you can repay the amount you want to borrow with your income, including SSDI. Remember to compare lenders carefully before you apply. Some may offer better rates or loan terms that could save you money in the long term.