Can I Get a Personal Loan on Disability?

Loan Options, Eligibility, and How It Affects SSI & SSDI

Introduction: Can You Borrow Money While on Disability?

If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you may be wondering:

💳 Can I get a personal loan while on disability?

💳 Will a loan affect my SSI or SSDI benefits?

💳 What types of loans are available for disability recipients?

The short answer:

✔ Yes, you can get a personal loan while on disability, but it’s important to understand how it affects your benefits.

✔ SSDI recipients can take out loans with no impact on benefits.

✔ SSI recipients must be careful—large loan deposits could affect eligibility.

In this guide, we’ll cover:

✅ Which loans you can qualify for on SSI & SSDI

✅ How personal loans affect disability benefits

✅ Best lenders for disability recipients

✅ Alternatives to loans for financial emergencies

✅ How Purple helps track finances while receiving disability benefits

Let’s get started!

1. Can You Get a Personal Loan While on Disability?

Yes! There are no rules preventing SSDI or SSI recipients from taking out loans. However, there are key differences in how loans affect each type of disability benefit.

✔ SSDI Recipients – Loans Do NOT Affect Benefits

• SSDI is based on work history, not financial need.

• Loans are not counted as income, so borrowing money won’t reduce SSDI payments.

📌 Example: You take out a $5,000 personal loan—your SSDI payment remains the same.

⚠️ SSI Recipients – Loans Could Affect Benefits

• SSI is needs-based, meaning SSA checks your income & resources.

• Loans are NOT counted as income, but the money must be spent within the same month.

• If the loan balance stays in your account past the month you receive it, it may count toward SSI’s $2,000 asset limit.

📌 Example:

• You take out a $3,000 loan in May and still have $2,500 in June → SSI benefits may stop until you spend down the excess.

• If you spend the loan within May, your benefits won’t be affected.

💡 To keep SSI, spend the loan on rent, bills, or approved expenses before the end of the month.

2. Best Personal Loan Options for SSI & SSDI Recipients

If you’re looking for a personal loan while on disability, consider these options:

✔ 1. Credit Union Loans (Best for Low Rates)

• Many credit unions offer small-dollar personal loans with lower interest rates than banks.

• Easier approval for low-income individuals.

📌 Where to Apply: Find a local credit union at MyCreditUnion.gov.

✔ 2. Online Personal Loans (Fastest Approval)

• Online lenders offer personal loans up to $50,000, but interest rates vary.

• Some lenders approve low or fixed-income borrowers.

📌 Best Online Lenders for Disability Recipients:

✅ Upstart – Accepts non-traditional income sources (Upstart.com)

✅ LendingClub – Personal loans from $1,000 to $40,000 (LendingClub.com)

✅ Avant – Loans for fair credit borrowers (Avant.com)

💡 Be cautious—online loans may have higher interest rates than credit unions.

✔ 3. Credit Builder Loans (Best for Low Credit or No Credit History)

• Instead of receiving cash upfront, you make monthly payments and get the loan amount after repayment.

• Helps build credit while saving money.

📌 Best Credit Builder Loans:

✅ Self Credit Builder Loan (Self.inc)

✅ CreditStrong Loan (CreditStrong.com)

💡 These loans are ideal if you need to improve credit before taking out a larger personal loan.

✔ 4. Payday Alternative Loans (Avoid Payday Lenders!)

• Avoid payday loans—they charge 300%+ interest and trap borrowers in debt.

• Instead, check for Payday Alternative Loans (PALs) from credit unions, which offer low-interest emergency loans.

📌 Find PALs at: FindACreditUnion.com.

💡 SSA does not count PALs as income, but they should be repaid quickly.

3. Alternatives to Personal Loans for Disability Recipients

If you need money but want to avoid debt, consider these options:

✔ 1. Emergency Cash Assistance Programs

• TANF (Temporary Assistance for Needy Families) – Monthly cash assistance for low-income individuals.

• LIHEAP (Energy Assistance Program) – Helps pay utility bills.

• SNAP (Food Stamps) Expedited Benefits – Emergency food assistance in 7 days.

📌 Find assistance at: Benefits.gov

✔ 2. Grants for People on Disability

• Modest Needs – One-time grants for essential expenses (ModestNeeds.org)

• The Dream Foundation – Grants for individuals with terminal illnesses (DreamFoundation.org)

• United Way 211 – Emergency financial assistance (211.org)

💡 Grants don’t have to be repaid and won’t count against SSDI or SSI.

4. How to Avoid Scams When Looking for Loans

⚠️ Warning Signs of Loan Scams:

❌ Guaranteed approval with no credit check

❌ Upfront fees before receiving funds

❌ Unsolicited loan offers via text or email

📌 Always check a lender’s reviews before applying. Report scams to ReportFraud.ftc.gov.

💡 SSA will never ask you to pay to receive benefits or loans.

5. How Purple Helps Manage Loans & Disability Benefits

💜 Track Your SSDI & SSI Payments – Know exactly when your benefits arrive.

💜 Monitor Loan Balances – Keep track of repayments & avoid debt.

💜 Find Financial Assistance Programs – Get matched with grants & low-interest loans.

💜 Receive Alerts for Benefit Changes – Stay informed on how loans impact your SSI eligibility.

💡 With Purple, you can manage personal loans while keeping your disability benefits safe!

6. FAQs About Getting a Loan on Disability

Can I Get a Loan If I Receive SSDI?

✔ Yes! SSDI does not limit savings or loan eligibility.

Can I Get a Loan If I Receive SSI?

✔ Yes, but large deposits may count toward the $2,000 asset limit.

Do Personal Loans Affect My Disability Benefits?

✔ SSDI – No effect

✔ SSI – Only affects benefits if money stays in your account past the month you receive it

What’s the Best Loan for People on Disability?

✔ Credit union loans and credit builder loans have lower interest rates.

7. Conclusion: Yes, You Can Get a Loan on Disability—Here’s How to Do It Safely

✅ SSDI recipients can take out loans with no impact on benefits.

✅ SSI recipients should spend loan funds within the same month to avoid asset limits.

✅ Credit unions and online lenders offer personal loans for disability recipients.

✅ Grants and assistance programs are alternatives to borrowing.

✅ Use Purple to track loans and disability benefits safely!

💜 Sign Up for Purple to Manage Loans & Disability Benefits!