Short-term loans are, unlike banks, much simpler to apply for; they don’t require you to own a bank account and only ask for a small list of documents. A minimum requirement is a valid government-issued identification and a selfie. And then once approved, expect the amount to be disbursed immediately. Easy.

However, some people are still wondering if they can apply and be approved for an online loan should they lose their employment. The question is complex and for us to know the right answer, here are a few things to consider.

Unemployment vs source of income

A nuance to understand in the world of short-term loans is that unemployment and not having a source of income are two different things. For instance, if you’re not employed with an official employer but own an online business that generates profit, then you technically still have a source of income. 

male hand counting coins


For longer-term personal loans, you’ll have to provide proof of business ownership to qualify. But for short-term loans, proving that the business offers a steady stream of income is enough to get through the employment part of the application. So even your unregistered, small-scale DIY online shop may be enough to back you up. 

READ: What You Need To Know About Personal Loan Refinancing

Not having a source of income is what will make it impossible to apply for any loan. You need to have a steady cash flow to be able to make repayments in the future, and without one, moneylenders are unlikely to qualify you. So, before applying for a quick cash loan, considering checking your monthly earnings. Do you have a steady source of funds even if you are not employed? If yes, then you can proceed with the application. 

Unemployed individuals who can get a loan

Again, the point of the argument is not about having an employer but about having a steady source of income to cover for your repayment. Online lenders will not require proof of income. But responsible borrowers will make sure they could pay back what they borrow. 

Check out if you belong to any of these individual groups who have a great chance of being qualified for an online loan:


It’s highly encouraged that you get registered, but if you’ve been informally accepting commissions that generate an average monthly income, then you can certainly pass as someone with a source of income. 

Business owners

Most online business owners with small-scale stores aren’t registered, as you don’t need an official permit to set up a Shopee online store or make transactions on Instagram. If you can prove that you make a profit then you will pass as someone with income. 


Retired Individuals

If you’re retired but make a consistent monthly income through investment returns like a time deposit, property rentals, and stocks, then you can qualify as someone with income. However, note that most moneylenders have an upper age limitation, so if you’re on the older side, then you might not qualify for that reason. 

Alternative loan for people without income 

The SSS Unemployment benefit is a completely free claim up to a year after you were laid off. The maximum amount you can receive is 2x 50% of your monthly average salary credit. But this claim only applies if you have made at least 36 monthly contributions. 

Why are some online loan applications decline?

Although the process of applying for a fast cash loan is easy, it doesn’t guarantee 100% approval for everyone. Online lenders also have their way of screening applicants to know whether they are high-risk or low-risk borrowers. 



One of the most obvious reasons for disapproved loans in delinquency or bad credit history from other online lenders. If you think you have a bad borrowing record, then don’t expect for a chance to be approved. On the other hand, if you settled all your outstanding balances, then you are worthy of the lender’s trust. 

When is the best time to apply for an online loan?

You can always apply for an online loan even if you don’t have the resources to pay for it. However, if you wish to maintain your credit line and be able to benefit from a higher loan amount and other borrowing privileges, then make sure you have a source of funds for loan repayments. 

Applying for an online loan should be reasonable. Medical emergencies, tuition fees, bill payments, and other necessities are reasons for you to take your chance to borrow. However, you should not take the risk of borrowing if you have a lot of financial obligations to fulfill. Delinquencies come with a hefty price. 

Bear in mind:

Getting approved for a loan is a privilege you shouldn’t waste. It is a chance for you to prove your worth as a borrower. Through online loans, you can address financial emergencies immediately. Once you’re there, make sure you show the lender you’re worth the trust. Pay your dues in full and on time. Get into the habit of fulfilling your obligations religiously so that when you need a bigger financial opportunity in the future, you will not have a hard time looking for relief. 

Diana Fernandez

Diana Fernandez

A journalist by trade, previously a writing coach to budding journalists in the Philippines and a business writer in the Middle East, Diana is passionate about providing relevant, engaging, and informative content to help Filipinos choose the right financial product.