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How much money do you need to make to get a personal loan?

Find out what the minimum income requirements are for lenders.

Minimum income for personal loans varies by lender. Some lenders require a minimum monthly income around $1,000 to $2,000, while others require a minimum annual income around $13,000 to $17,000. Others do not specify a minimum income because they approve applications on a case-by-case basis. Some don’t even require employment since they accept non-employment income such as government benefits or private pension. Income is just one of several factors that lenders look at when deciding whether to approve you for a personal loan. Other factors include credit score, employment history and existing debts.

What is the minimum salary to get a personal loan?

Below is a breakdown of different lenders with their minimum income requirements.

LenderMinimum incomeLender typeOther eligibility requirements
loan connectDepending on circumstancesOnline broker- Be the age of majority in your province of residence
- Be a Canadian Citizen or a Permanent Resident
- Any currents debts must total less than 60% of your income

– Minimum credit score of 300

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Spring Financial LogoDepending on circumstancesOnline lender- Age of majority in your province or territory of residence
- Minimum credit score of 400
- Minimum income of $1,800
- 3+ months employed
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Loans Canada$1,000 monthlyOnline broker- Be the age of majority in your province of residence
- Be a Canadian resident

– Minimum credit score of 300

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Picture not described$2,000 monthlyOnline lender– At least 20 years old
– Proof of income for past 3 months
– Valid Canadian ID
– Valid email address and phone number
– Minimum credit score of 500
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Picture not described$15,000 annuallyPeer-to-peer lending platform– Age of majority in your province
– 600+ credit score
– Proof of regular source of income
– Canadian resident for min. 3 years
– Valid email address, mailing address, phone number and bank account
Skycap Financial logo1,200 monthlyOnline lender– Stable employment
– 18 or age of majority in province- Minimum credit score of 550
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Mogo logo$13,000 annuallyOnline lender– Be the age of majority
– Must have a credit bureau
– Not currently in bankruptcy
– Bank statement showing the last payroll depoisted and the last 30-days activity
– Valid ID showing home address
– Minimum credit score of 500
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Picture not described

(Unsecured personal loan)

Depending on circumstancesOnline lender- Be a citizen or resident of Canada (excluding Nunavut)
- Be the age of majority in your province or territory
- Provide personal identification, secondary ID, proof of income, housing information and mortgage verification
- Have an established credit history
- Able to make monthly repayments on your loan

– Minimum credit score of 560

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Picture not described$1,000 monthlyOnline lender- Be the age of majority in your province of residence
- Be a Canadian resident

– Minimum credit score of 300

CIBC logo$17,000 annuallyBank– Age of majority in your province
– Be a Canadian resident
– Have a valid bank account
– Haven’t declared bankruptcy in the last 7 years
– Have not been declined credit by CIBC in the last 6 months
– Good to excellent credit score
Learn more about bank personal loans

Keep in mind that how long you’ve had your income matters too. Most lenders will want to see steady income for at least 3 months.

Other factors that affect your personal loan application

  • Credit score and credit history. Lenders will want to see how you’ve managed your debt and bill payments in the past. If you have a bad credit score, you have higher chances of getting approved by an online lender than a bank.
  • Employment. Employment requirements vary among lenders. Some will want to see full-time employment, while others are fine with part-time or self-employment as long as you meet their income requirements.
  • Loan security. There are two main types of personal loans: secured and unsecured. Secured personal loans involve collateral, which lowers the risk for the lender and therefore brings down your interest rate. Unsecured personal loans tend to have higher interest rate since the lender is taking on more risk.
  • Assets, debts and expenses. You’ll be asked to list your assets, debts and expenses. Lenders use your debt and income to calculate your debt-to-income ratio (DTI). The lower your DTI, the better.

What is a debt-to-income ratio?

Debt-to-income ratio (DTI) is a simple measurement of your monthly debt compared to your gross monthly income. This lets lenders see how you’ve managed payments for what you’ve borrowed. Typically, borrowers that have a high debt-to-income ratio will likely have trouble making repayments. Borrowers with a debt-to-income ratio over 43% are generally considered to be going through a financial hardship, while an excellent debt-to-income ratio is about 20% or lower.

Let’s say you have a total of $1,000 in bills each month and your gross monthly take home pay is $3,000 – your debt-to-income ratio is 30%. With a 30% debt-to-income ratio you would appear as a relatively responsible borrower. Calculate your DTI.

Calculate how much you can borrow

FlexMoney Personal Loan

FlexMoney Personal Loan

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  • Same day funding
  • Quick online application
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FlexMoney Personal Loan

Apply online in less than 10 minutes. If approved, receive funds in as little as 24 hours. Pay off your loan at any time.

  • APR: 18.90% - 46.93%
  • Loan amount: $500 - $15,000
  • Loan term: 6 - 60 months
  • Fees: No application, origination or prepayment fees
  • Min. credit score: 500
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What if I’m not qualified?

There are a few things you can do if you find out you don’t meet the minimum income requirements.

  • Put up collateral. Since you’re lowering the risk for the lender, you increase your chances of approval. But keep in mind that the lender can repossess your asset if you fail to make your payments, so make sure you can manage the repayments.
  • Apply with another lender. If the rest of your finances are solid, you can apply with a lender who doesn’t have a minimum income and approves personal loans on a case-by-case by basis.
  • Try your current bank. If you have a good banking history, you may have a better chance of being approved for a loan with your current bank since it will be familiar with your finances.
  • Apply with a cosigner. A cosigner is a family member or friend who agrees to sign the loan with you. If you default on the loan, the cosigner is on the hook to make the payments on your behalf. The cosigner’s finances must be in good shape in order to qualify.
  • Apply for a lower amount. If you can’t prove to the lender that you’ll be able to manage repayments for the requested loan amount, consider borrowing less. This will mean lower repayments for you and less of a risk for the lender.

    Steps to take after your application is rejected

    Frequently asked questions

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