Best Personal Loans for People on Disability in 2026

Can you get a personal loan while on disability?

Yes, it is possible to get a personal loan while on disability. The Equal Credit Opportunity Act prohibits lenders from discriminating against public assistance income, including SSDI and SSI payments. In fact, because these payments are issued by the U.S. government, they are often considered highly reliable and stable.

However, the size of these disability payments is typically small when compared to traditional employment income, which means the size of the personal loan you’re approved for may also be smaller. 

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What counts as disability income?

There is no one set definition of disability income. It can refer to benefits paid to recipients of SSDI or SSI or payments issued in relation to a purchased long- or short-term disability insurance policy. 

The Social Security Administration (SSA) offers multiple disability benefit programs, including SSI and SSDI, and eligibility requirements will differ depending on the program. 

If you are on SSI or SSDI, you may rely on other state benefits in your day-to-day life such as Medicaid or housing assistance. These programs can come with additional means testing requirements. It is of utmost importance to check the rules around these separate benefit programs before taking out a personal loan.

Social Security Disability Insurance (SSDI)

SSDI benefits are based on your past employment experience. To qualify for SSDI, you must not be able to work for at least 12 months due to your disability. After this period, you may be able to go back to work without losing your benefits right away. There are no limits on the amount of assets you are allowed to hold. 

When you take out a legally compliant loan from a financial institution, the loan disbursement is not counted as income. This effectively means that taking out a personal loan typically won’t affect your SSDI benefits.

Supplemental Security Income (SSI)

SSI can apply even if you have limited or no work history but come with income and asset limits. Generally, your countable resources per month are capped at $2,000/individual and $3,000/married couple.

These rules are important when it comes to taking out a loan. While a bona fide loan will not count as income in the month it is received, if you hold onto those funds in your bank account, the following month, it’s considered a resource. If these funds push you over the $2,000/$3,000 limit, you could be ineligible for SSI benefits that month. 

ABLE accounts

ABLE accounts allow disabled people to shelter up to $100,000 from SSI’s countable resource limit. ABLE funding can come from family and friends who want to financially help — perhaps even as an alternative to a loan — since directly providing that money could impact a person’s SSI benefits. Keep in mind, an annual contribution limit will apply.

If you get a personal loan and want to hold onto some of the proceeds the following month, an ABLE account could theoretically help in this situation, too.

“If you connect the information provided by the SSA [about loans and ABLE accounts],” says Rob Percival, Head of ABLE Solutions at Ascensus, “one can argue that the proceeds from a personal loan received and subsequently contributed to an ABLE account within the same month would not be considered a countable resource for SSI purposes.”

However, Percival warns that pursuing this route is novel and is best done with the assistance of an attorney and tax professional who can review your situation to ensure you don’t lose your SSI benefits.

Employer and private disability insurance

You can get both short- and long-term disability insurance policies privately or through your employer. Some states also require employers to participate in disability insurance programs for their employees. 

Private disability insurance policies typically come with an elimination period, which is the length of time for which you’ll have to wait for your payments to begin. This can be days to weeks if you’re on a short-term policy and around 90 days for long-term policies. Keep in mind, these insurance policies have what are known as “maximum benefit periods,” which determine how long your benefits can be paid out. 

Borrowing while you wait for disability approval

One reason people may look for disability loans is that they’re waiting for their benefits to kick in. For example, you might be in the 90-day elimination period of your long-term disability policy. Similarly, SSDI payments have a five-month waiting period, with benefits starting in the sixth full month after the SSA has determined your disability started. 

It can be difficult to qualify for a loan while you have no active income. If you do manage to get a loan during this time, remember that you’ll have to pay it back even if your disability benefits are denied or delayed. 

Personal loan requirements when your income is disability benefits

A lender still keeps its personal loan requirements — including credit score and debt-to-income (DTI) ratio — even when your income is from disability benefits. However, the amount and nature of those benefits may affect whether or not you qualify. 

Credit score and credit history

Regardless of whether you are receiving SSA benefits, your credit score and history play an important role in getting a loan. On the LendingTree platform, the average credit score for users who qualified for at least one loan offer was 653. 

If you have poor credit or you have a significant negative mark on your credit report — like a bankruptcy — that doesn’t necessarily mean you won’t get approved, but it may be more difficult. You also might find that you’re offered a higher APR or less advantageous terms. 

One thing you won’t find on your credit report is whether or not you’re receiving disability benefits. Receiving SSI or SSDI doesn’t directly impact your credit score. 

Debt-to-income ratio

Your debt-to-income ratio may be evaluated by lenders to decide whether you can reasonably afford a new loan. An ideal DTI ratio is considered below 36%, though limits vary by lender and loan type. This means that if you are on SSDI or SSI as your main source of income, a high DTI ratio could limit how much you can borrow. 

Let’s say you’re receiving the average SSDI benefit of $1,636 (as of publication) and you carry no other monthly debt obligations. If you take out a loan, a monthly payment of $588.96 would bring you up to a 36% DTI ratio.

Keep in mind that even payments such as rent can be included in your DTI ratio. So, if your rent or mortgage payments were around $588.96 and you wanted to keep your DTI around 36%, there would be little flexibility for a loan payment. 

Income minimums

Some lenders have annual income minimums. If your disability benefits are your only source of income and you receive the same amount every month, you can multiply your monthly benefit amount by 12. 

If you receive the average SSDI monthly benefit of $1,636, you would have an annual income of $19,632. This would be enough to meet some lenders’ minimum annual income requirement, but it might not be enough for other lenders. Keep in mind that meeting a lender’s income requirements does not guarantee approval.

One solution to both income requirements and DTI ratios is applying with a cosigner or co-borrower on your personal loan. The second person’s income and credit history can help you qualify, but if you do not repay on time, it can affect their credit report, too. 

Calculate how much your personal loan will cost you

How to apply for a personal loan on disability income

Review your income and credit

Before you apply, add up your disability benefits along with any other reliable, documented income. Then, check your credit report at AnnualCreditReport.com and your credit score using LendingTree.

Gather required documents

You will need to provide proof of income and identity when filling out your loan application. 

If you are on SSDI or SSI benefits, be prepared with the following: 

If you are receiving payments from employer-sponsored or private disability insurance, prepare these: 

Regardless of where your disability income comes from, it’s good practice to have your government-issued ID, proof of address and Social Security number on hand to prove your identity. 

Compare lenders that accept disability income

While all lenders are prohibited from discriminating against income from public assistance benefits, you may find the warmest welcome from lenders who explicitly mention these benefits as qualified income. Once you’ve identified these lenders, compare the following to find the best personal loan for you: 

Prequalify if possible

The lowest APRs advertised by a lender will go to applicants with the strongest credit. It can be hard to determine where you fall in that range unless you apply for prequalification. 

Prequalification for a personal loan involves a soft pull on your credit — which doesn’t affect your credit score. These rates and loan amounts aren’t guarantees, but they can give you a better idea of what you may qualify for before filling out an official application. 

Submit a formal application

After reviewing your prequalified offers, it’s time to submit a formal application. These include a hard credit pull, and the terms presented in the loan offer documents will be final. 

Once you’ve accepted the final loan offer, you’re legally bound to it. That makes it extremely important to read all of the fine print in the lender’s disclosures before signing on the dotted line. 

As part of this process, ensure you’re only borrowing an amount you’re certain you can pay back. Borrowing more than you can afford can have long-term negative ramifications on your credit and could cost you more money in late fees and penalties. 

Where to get a loan on disability income

Online lenders

Online lenders may provide more flexible underwriting requirements and often provide faster funding than brick-and-mortar lenders. That said, you will want to do full vetting to ensure the lender you find online is legitimate.

Credit unions

Credit unions typically serve their communities and approach borrowers with a more human-centered approach than traditional banks. Some credit union personal loans will use membership-based underwriting, which may consider the length of your membership with the credit union in addition to factors like your credit score and payment history. 

Banks

Traditional banks tend to have the strictest underwriting requirements for a personal loan — though you will find exceptions. Getting a personal loan through a bank is typically easiest and most beneficial if you have an existing relationship with the bank and can take advantage of any perks, such as account or autopay discounts.

What to do if you’re denied

If you are denied a personal loan, that doesn’t mean you’re out of options. You can consider routes such as: 

Alternatives to a personal loan

SSA expedited payments

Before applying for a loan, check if you qualify for faster payments. The SSA may approve expedited payments of your benefits if you: 

Interim Assistance Reimbursement

If you have applied for SSI, your state may offer you Interim Assistance while your application is processing to cover your basic needs. In turn, when your application is approved, the SSA may reimburse your state for the assistance it provided. This requires written authorization from you and an IAR agreement in place between the state and SSA. Once the state is reimbursed, any remaining past due SSI payments will be paid to you.

State and employer short-term disability

Short-term disability insurance is a mandated employee benefit in the following states: 

Washington, D.C., also has a paid family leave program, which can, in many cases, effectively act as a short-term disability program for up to 12 weeks. 

If you live in another state, you may also hold a private disability insurance policy or one purchased electively through your employer.

Assistance programs and grants

If SSDI or SSI is going to be your only source of income for the long term, you may need to end access to federal, state and local assistance for things like rent, grocery costs and utilities. If you have no or little income while you’re waiting for your application to get approved, there’s no reason you can’t apply for these programs now.

You can also look for grants specific to your disability. A grant is money that you won’t have to pay back. While disability grants may be more competitive and less abundant than personal loans, they are more advantageous financially.

Payday alternative loans

Some federal credit unions offer payday alternative loans (PALs), which are small-dollar loans up to $1,000. The fees on these loans are minimal — you’re only charged what it costs the credit union to process your application. As the name indicates, these are a superior option to payday loans and can be particularly attractive to those waiting for their first SSDI check.

Loans to avoid

Some loans can put you in a worse situation than when you started. It’s best to avoid these loans in nearly all situations — and especially when you’re on a fixed income: 

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