If you are out of work and want to borrow money, it may seem logical that you would need to have a job to qualify for a personal loan. If you are unemployed, there may be some ways for you to borrow money provided you meet certain lender requirements including the ability to pay back your loan. Bankers consider risk when extending loans based on those requirements.

Your Credit

Lenders look at more than your employment status to determine whether you qualify for credit including your credit rating. Your credit rating is based on your financial history, which shows whether you have kept up with your financial obligations. A strong credit score works to your advantage.

Cash Flow

You may not have a job, but your lender will take under consideration other forms of income including alimony, stock dividends, pensions, social security or disability payments. Steady income derived from other sources can also be beneficial. Make certain you declare all forms of income when you fill out your loan application.

Ability

When considering your loan application, the bank will determine whether you have the capacity to repay your loan. Your lender may ask for copies of tax returns, financial statements and copies of utility bills and rent receipts to pinpoint how much you can afford to pay each month and write up a loan based on your debt ratio. You can use an online calculator such as one provided by MSN Money to calculate that cost ratio yourself.

Collateral

With very little income and no job, the chances of obtaining an unsecured personal loan are very slim. However, you may be able to secure your loan by offering up something of value as collateral such as a savings account, a car free of a lien, a boat, jewelry, fine art or a coin or stamp collection. Your banker may be willing to lend you money up to the value of that item, an amount which can be determined by a professional appraisal.

Considerations

If you are approved for a loan despite your current employment status, consider how those monthly payments will affect your financial position until you find work or increase your income. A willing lender knows what you can afford to repay and will extend you a loan based on that criteria above all.

Warning

If your collateral is a savings account, then the amount in your account equaling your personal loan will be unavailable to you until the loan has been paid off. Make sure that you won't be needing those funds before your loan is paid off and the lien on your savings account released.