Can I Get a Payday Loan in the UK With No Income?

Last updated on October 29th, 2025 at 04:08 pm

Generally one cannot get a payday loan in the UK without an income. The reason is simple: if you don’t have money coming in, there’s no way to show you can afford to repay what you borrow.

However, the situation isn’t always so black and white: while traditional employment is the most straightforward route to loan approval, there are a few exceptions. 

Let’s look at what lenders consider and what loan alternatives might be available.

Why Lenders Require Income Before Approving a Loan

Lenders are legally required to make sure you can afford the repayments without putting yourself in financial trouble. When you apply for a loan or look to borrow money, the very first thing they check is whether you have a steady source of income.

Without a regular income, there is no evidence you can make regular payments, so most lenders will reject the application. This is true whether you’re applying for a payday loan, a personal loan, or even a small short-term credit product.

Employment is a Reliable Source of Income For a Loan

Having a job (even part-time) is the clearest sign to a lender that you can repay what you borrow. Most payday lenders and short-term loan providers require you to be employed and earning at least £500 per month after tax before they’ll consider your application.

Your employment does not need to be a full-time role. Many people are approved for loans while working part-time, as long as their income is consistent and meets the lender’s minimum threshold. This is usually the easiest and fastest way to qualify for credit.

Types of Employment That Are Often Approved For Loans

-Supermarket workers

-NHS workers

-Teachers and civil servants

-Professionals e.g dentists, doctors, lawyers, accountants

Types of Employment That Are Less Approved

-Army and soldiers

-Youtubers and influencers

-Self-employed, contractors and freelancers

Can You Get a Loan With Alternative Income?

Yes, If you’re not employed you might still be able to borrow if you can show you have another regular income source – although the lender will have to take a view on this. Some direct lenders take a more flexible approach and consider other forms of money coming in. 

These could include:

• Rental income from a property you own
• Investment income from dividends or interest
• Pension payments if you’re retired
• Government benefits such as Universal Credit or disability benefits

The key is consistency. If the money arrives regularly and is enough to cover repayments, some lenders may still approve your application, though the amount they’re willing to lend might be smaller, and the interest rate could be higher.

What If You Have No Income and Need a Loan?

If you have no job and no alternative source of income, your chances of getting a loan are likely to be very low. Lenders simply cannot justify the risk, and offering you credit in that situation would likely breach responsible lending rules.

In this case, you may need to look at other forms of financial support. If you’re struggling to meet day-to-day costs, you can consider credit unions, government support or speaking to a free debt advice service might be a better first step. You could also consider building some income — even part-time work or freelance jobs — before applying again.

Can I Use a Guarantor Loan if I Have No Income?

In the past, some people with no income turned to guarantor loans: products where someone else (like a friend or family member) promises to repay the debt if you cannot. However, this part of the lending market has shrunk significantly in recent years, and many lenders now still require you to show some form of income, even with a guarantor.

It’s also a big responsibility for the person acting as your guarantor because they will be liable for any unpaid debts. So it is worth thinking carefully before going down this route.

Conclusion

While there are a few exceptions, the reality is that you can’t borrow money without showing you have some way to pay it back. Regular employment remains the easiest and most reliable route to getting a loan, but some lenders will also consider steady income from pensions, benefits, investments or rental payments.

If you have no income at all, focus on improving your financial situation before applying. That might mean finding part-time work, building up savings, or seeking free financial support. Once you have a stable income in place, your chances of approval will improve dramatically.