A self-employed personal loan is a personal loan for people who are sole-traders or run their own business. While the application process is a bit different for self-employed personal loans, there are still plenty of options available to people who are self-employed. Typical options available to self-employed people include the following:
If you have a long-established business with a steady cashflow, or have been a sole trader or independent contractor for years, your chances of approval are better. Borrowers who have just set up a business will struggle to prove they can repay the loan.
As a self-employed borrower you also need to make sure you meet the lending criteria for the personal loan you're applying for.
Don't apply for a loan if the lender requires evidence you can't provide.
Low doc loans can be a useful resource for self-employed people who may not be approved for a standard personal loan. They require less documentation than traditional loans, which means a quicker and easier application process. So, if you struggle to prove your income or assets, you may find it easier to be approved for one of these loans.
Low doc loans have higher rates and fees than standard loans, especially if you're dealing with a specialist lender. So, you don’t want to apply for one unless it’s your only option.
As mentioned earlier, low doc loans are usually more expensive than standard personal loans. This means that you should try to qualify for a standard personal loan before you look for a low doc loan.
Keep in mind that many banks and alternative lenders may offer loans that aren’t more expensive than standard loans to self-employed individuals. Make sure you’re comparing all options and that you’re aware of exactly what’s out there before deciding to apply with any particular lender.
Keep in mind the following factors when comparing the loans offered by different lenders:
| Interest rate | Make sure you know the difference between a fixed and variable interest rate. If you're going with a variable interest rate, check that you will be able to make monthly repayments if the rate happens to spike upwards at any time. |
| Turnaround time | Depending on why you're applying for the loan, you may need your money disbursed within a certain timeframe. |
| Eligibility | Before applying for any loan, check what the eligibility requirements are. Also, avoid applying for too many loans within a short period of time. Lenders consider you an high-risk borrower if you make frequent applications. |
| Loan cost | Make sure you're aware of all fees associated with each loan. This includes any one-off or ongoing fees. |
| Secured vs unsecured | Always check to see if the loan you're considering is secured or unsecured. In other words, check whether the lender requires you to put up any collateral as security for the loan. Security could include assets such as your home or business equity. |
Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest. 
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
How much are Aussie's borrowing through personal loans? And is it more expensive now than it was 15 years ago on average?
If you don't quite meet the criteria for a personal loan, applying with a guarantor can help get your application over the line.
lendlab is an Australian lender that offers personal loans to both good and bad credit applicants. Find out more about lendlab's rates, fees and features.
If you're wanting to bolster your application, buy an asset with your partner or apply for a loan you're not eligible for by yourself, you can consider a joint application personal loan.
If you're thinking about getting an apprentice loan, explore the possibility of government-sponsored loans as well as loans offered by banks. Find out everything you need to know to compare your options.
Not all personal loans come with endless documentation. Some lenders specialise in quick and easy application processes.
St.George have a range of competitive personal loans on offer. Whether you're after a secured loan or unsecured personal loan, it can offer you a competitive product with flexible features. Learn more about its offerings and you're eligible to apply.
Find out your loan options if you're casually employed, or are part time and don't work a full 40-hour week.
Find a low interest loan by comparing your options with Finder. See interest rates, fees, and features for loans across Australia, plus guides to help you get the best deal.
Find out exactly what you need to know when it comes to cheap personal loans, including working out if a loan is really competitive.
I need a loans required for business growth and development. Can I help you.
Hi Rupesh,
Thanks for your enquiry.
Regarding your concern, please check our our list of business loans that could help you grow your business. Aside from a list of business loans you can compare, the page also discusses the things you need to consider before applying for a loan.
Please read through that page to make a better decision.
I hope this helps.
Cheers,
Danielle