What is a self-employed personal loan?
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:
- Specialist loans. The first way is through a specialist lender who provides personal loans for self-employed people. These may include lenders that offer self-employed loans for tradies or personal loans for ABN holders.
- Standard personal loans (secured or unsecured). You can apply for any standard personal loan if you can meet the documentation requirements as an employed person.
- P2P loans. You can also submit an application to a P2P lender if you meet the eligibility and employment criteria.
- Low doc loans. If you cannot meet the doc requirements, you can apply for a low doc loan, which requires fewer documents, although this type of loan is usually more expensive than a traditional loan.
How can I get a personal loan if I’m self-employed?
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. Lenders may ask for different paperwork, such as tax statements or business bank account statements.
Don't apply for a loan if the lender requires evidence you can't provide.
Do I need to apply for a low doc loan?
Low doc loans can be a useful resource for self-employed people who may not otherwise be approved for a standard personal loan. This is because 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.
However, the only reason you should apply for a low doc loan is if you can’t meet the documentation requirements set out by a standard personal loan. Low doc loans normally have higher rates and fees than standard loans, especially if you're dealing with a specialist lender. They also usually have fewer features and less flexibility than traditional loans. So, you don’t necessarily want to apply for one unless it’s your only option.
What documentation do I need?
For self-employed applicants, lenders usually require any or all of the following documentation. Keep in mind that applying for a low doc loan may mean you won’t need some of these documents:
- Tax returns. Be prepared to show the last two years of your full personal and/or company tax returns. These will help prove any income you declare on your application.
- Financial statements. These may include any profit/loss statements to also support the income you declare.
- Proof of rental income. If you have any income from rental properties, you can declare this with real estate statements or copies of your executed lease agreements.
- Notice of Assessment. Make sure you have on hand your latest Notice of Assessment (NOA) given to you by the Australian Taxation Office (ATO). This shows tax information such as the amount of income tax you owe(d). Depending on the lender, you may need to provide your NOAs from the last two years.
- Recent bank statements. This includes statements showing your savings and business transactions. It may also include statements showing any other outstanding loans or credit cards you have with other lenders.
- Company-specific information. If you own your own business, be prepared to provide information such as your company’s ABN, address, etc.
- Personal identification. Depending on the lender, this may be your Australian driver’s licence, passport or proof of age card. You’ll either need to copy your ID and fax it over to the lender or scan it and attach the digital file to your application.
Are self-employed loans more expensive than standard personal loans?
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.
How can I compare my options?
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. Make sure that any lender you choose can provide your money within the time period you need. |
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 as lenders will often consider you an irresponsible high-risk borrower if you make frequent applications. |
Application process | When comparing different lenders, be aware of the application process specific to each lender and what kinds of challenges or difficulties you may face when applying. |
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. |
Why compare personal loans with Finder?

We're free
Our personal loan comparison is completely free to use. There are no costs at all for you to use our database to find a better deal. Better still, we regularly run exclusive deals that you won't find on any other site.

We're experts
We've researched and reviewed hundreds of loans as part of our Finder Awards. Our database and tables are always up-to-date and our in-house experts regularly appear on Sunrise, 7News and SBS News.
We're independent
We are independently owned and have a mission to help Australians make better financial decisions. That means our opinions are our own and you can compare nearly every personal loan in Australia (and find a better deal).

We're here to help
Since 2014, we've helped 300,000+ people find a personal loan by explaining your options simply. You don't need to give us any details to use our comparison. We're here to help you make a decision.Frequently asked questions about self employed loans
More guides on Finder
-
OurMoneyMarket Personal Loan – Excellent Credit
A marketplace personal loan with personalised interest rates.
-
Compare green loans: Go green and save big
Going green can save you money and support the planet but if the upfront costs are high, a green loan could help you make the switch.
-
Joint Personal Loans
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.
-
$10,000 loans in Australia
Are you in need of a larger loan but concerned about your credit history? There still may be options available, no matter your credit history. Read our guide to find out what might be available to you.
-
Personal loans for temporary residents
Temporary Australian residents may be eligible to apply for personal loans, depending on the visa they hold.
-
Easy personal loans
Not all personal loans come with endless documentation. Some lenders specialise in quick and easy application processes.
-
$5,000 loans
How to apply for a $5,000 loan and what you should keep in mind before applying.
-
Medical loans
Do you need to cover the costs of an elective surgery or unexpected medical bill? Compare a range of personal loans for medical expenses and cosmetic procedures.
-
Loans for casual and part-time workers
Find out your loan options if you're casually employed, or are part time and don't work a full 40-hour week.
Ask an Expert
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