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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 personal loan 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 lenders 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.

LenderMinimum income
Mogo logo$13,000/yearGo to site
Spring Financial logo$1,800/monthGo to site
LoanConnect logoNo minimum income requirementsGo to site
Picture not describedNo minimum income requirementsGo to site
SkyCap logo
$1,600/monthGo to site
Fairstone logo
Unsecured loan: Depending on circumstances
Fairstone logo
Secured loan: Depending on circumstancesGo to site
Picture not described
$15,000/year, but recommended minimum is $40,000Go to site

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CIBC Logo$17,000/year (gross)Read review

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.

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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

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

    Compare personal loans

    1 - 8 of 8
    Name Product Interest Rate Loan Amount Loan Term Requirements Link
    Loans Canada Personal Loan
    Secured from 4.70%, Unsecured 8.00% - 46.96%
    $300 - $50,000
    3–60 months
    Requirements: min. credit score 300
    Go to site
    More Info
    A broker with the largest lender network in Canada. Fill out one application and get matched for free with lenders.
    Spring Financial Personal Loan
    17.99% - 46.96%
    $500 - $15,000
    9 - 48 months
    Requirements: min. income $1,800/month, 3+ months employed, min. credit score 500
    Go to site
    More Info
    If you're not eligible for an unsecured loan, you may be offered a credit builder loan to help improve your credit score.
    goPeer Personal Loan
    8.00% - 33.92%
    $1,000 - $25,000
    36 - 60 months
    Requirements: recommended income $40,000/year, no payday loan debt, min. credit score 600
    Go to site
    More Info
    Connects creditworthy Canadians looking for an unsecured loan with Canadians looking to invest. Apply in minutes and get a response within 24 hours.
    SkyCap Financial Personal Loan
    12.99% - 39.99%
    $500 - $10,000
    9 - 60 months
    Requirements: min. income $1,600/month, stable employment, min. credit score 550, no bankruptcy
    Go to site
    More Info
    Apply in less than 5 minutes for an unsecured loan and if approved, receive financing in as little as 24 hours.
    Loanz Personal Loan
    29.90% - 46.90%
    $1,000 - $15,000
    12 - 60 months
    Requirements: min. credit score 570, min. income $1,200/month, 3+ months employed
    Go to site
    More Info
    Apply online and get approved in less than 3 minutes. Receive funds in as little as 15 minutes. Borrowers with bad credit or no credit can apply.
    LoanConnect Personal Loan
    Secured from 4.99%, Unsecured 5.99% - 46.96%
    $100 - $50,000
    3–120 months
    Requirements: min. credit score 300
    Go to site
    More Info
    Fill out one application with this broker and get pre-approved by different lenders in 5 minutes.
    Mogo Personal Loan
    9.90% - 46.96%
    $200 - $35,000
    6–60 months
    Requirements: min. income $13,000/year, min. credit score 500
    Go to site
    More Info
    Get a free quote without affecting your credit score and get an unsecured loan the same day. 100-day money-back guarantee: If you're not happy with your loan, pay back the principal and get the 100 days of paid interest and fees back.
    Fairstone Secured Personal Loan
    19.99% - 23.99%
    $5,000 - $50,000
    36 - 120 months
    Requirements: must be a homeowner, min. credit score 560
    Go to site
    More Info
    Use your home equity to get a secured loan with flexible repayment options. Get a free quote without impacting your credit score.

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