How to get a self-employed personal loan in Australia - April 2021

Self-employed personal loans

Self-employed and looking for funds? You may be able to qualify for a personal loan in just 48 hours.

We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!

Running your own business can be incredibly rewarding. However, if you’re self-employed and you require a personal loan, you may struggle to meet some of the eligibility requirements. Lenders often see self-employed individuals as more of a risk due to the fact that most small businesses (60%) fail within the first three years, according to the Australian Bureau of Statistics. Self-employed people may also struggle to prove their income or any assets that they may own, which can make it difficult to be approved.

However, there are options available from both traditional and non-traditional lenders offering personal loans to self-employed individuals. In fact, some lenders may approve your application in under 48 hours, so there’s no reason to feel pessimistic. The more you know about your options, how the process works and what documents you’ll need, the better your chances of a lender approving your application.

Portrait of smiling self-employed owner in motorcycle workshop with tools in background.

NAB Personal Loan Unsecured Fixed

NAB Personal Loan Unsecured Fixed

From

6.99 % p.a.

fixed rate

From

7.91 % p.a.

comparison rate

  • Additional repayments without penalty
  • No early exit fees
  • Borrow up to $55,000
Security Logo

100% confidential application

NAB Personal Loan Unsecured Fixed

NAB offers a fixed interest rate loan. Use your loan for a holiday, home improvement, a special project or even a wedding. It’s even a smart way to take control of your credit card debt.

  • Interest rate from: 6.99% p.a.
  • Comparison rate: 7.91% p.a.
  • Interest rate type: Fixed
  • Application fee: $150
  • Minimum loan amount: $5,000
  • Maximum loan amount: $55,000
Go to site
Promoted

Compare personal loans for self-employed borrowers

Data updated regularly
$
Name Product Interest Rate (p.a.) Comparison Rate (p.a.) Min Loan Amount Loan Term Application Fee Monthly Service Fee Monthly Repayment
NAB Personal Loan Unsecured Fixed

From 6.99% (fixed)
7.91%
$5,000
1 to 7 years
$150
$10
You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
Plenti Personal Loan

From 6.39% (fixed)
6.39%
$2,001
3 to 7 years
$0 to $999
$0
You'll receive a fixed rate between 6.39% p.a. and 17.89% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 3 years. Interest and comparison rates calculated for a loan term of 5 years.
Citi Personal Loan Plus
8.90% (variable)
9.18%
$5,000
3 to 5 years
$199
$0
You'll receive a variable rate of 8.90% p.a. with a comparison rate of 9.18% p.a.
A credit limit up to $40,000 that you can continue to draw down over terms up to 5 years. Note: Monthly account service fee will be waived for applications submitted before 30 September 2021.
Latitude Personal Loan (Unsecured)

From 7.99% (fixed)
9.24%
$3,000
1 to 7 years
$250 (Loans under $5000 - $140)
$13
You'll receive a fixed rate between 7.99% p.a. and 22.99% p.a. based on your risk profile
Apply for what you need from $3,000 and use it for a range of purposes. Repay weekly, fortnightly or monthly. You can check your interest rate before applying with no impact to your credit score.
SocietyOne Unsecured Personal Loan (2-3 years)

From 6.39% (fixed)
6.39%
$5,000
2 to 3 years
from 0% to 5% of the loan amount
$0
You'll receive a fixed rate between 6.39% p.a. and 17.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
SocietyOne Unsecured Personal Loan (5 years)

From 6.39% (fixed)
6.39%
$5,000
5 years
from 0% to 5% of the loan amount
$0
You'll receive a fixed rate between 6.39% p.a. and 19.99% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.
MoneyMe Personal Loans

From 6.25% (fixed)
7.64%
$2,100
1 to 5 years
from $295 to $495
$10
You'll receive an interest rate between 6.25% p.a. and 19.95% p.a. based on your risk profile
Borrow up to $50,000 with no hidden fees or costs. Application process usually takes 5 minutes to complete and is done fully online.
Plenti Variable Rate Personal Loan

From 6.39% (variable)
6.39%
$2,001
1 to 3 years
$0 to $999
$0
You'll receive a variable rate from 6.39% p.a and 16.89% p.a. based on your risk profile
A flexible loan with amounts from $2,001 and terms starting from 12 months. Benefit from transparent costs and a rate estimate before you apply.
NAB Personal Loan Unsecured Variable Rate

From 6.99% (variable)
7.91%
$5,000
1 to 7 years
$150
$10
You'll receive a variable rate between 6.99% p.a. and 18.99% p.a. (7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes. Benefit from fee-free additional repayments and a redraw facility. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.
loading

Compare up to 4 providers

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?

You will need to check the lending criteria of each to see if you qualify. If you're unsure about a lender's eligibility criteria, it's important that you contact that lender prior to submitting an application with any questions that you may have. There are also specialist brokers who may be able to assist you in preparing the right paperwork.

Keep in mind that for a standard personal loan, you'd usually need to provide at least two years of tax statements in order to qualify as a self-employed person. Depending on your lender, you may also be required to put up collateral as security for your loan.

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.

Personal loans for self-employed applicants

LenderInterest rateLoan amountAvailable to self-employed?What documents are needed?
ANZ12.99% p.a.$5,000 to $50,000yes
  • Most recent personal tax return
  • Corresponding ATO Notice of Assessment
  • Both need to be less than 18 months old
Bankwest10.99% p.a.$3,000 to $50,000yes
  • Financial statements and tax returns for the last two years
Bank of Melbourne12.99% p.a.$2,000 to $50,000yes
  • Recent tax information
BankSA12.99% p.a.$2,000 to $50,000yes
  • Recent tax information
bcu8.94% p.a.$5,000 to $75,000yes
  • Name of the business
  • Accountant's name and address
  • Personal tax returns and notices of assessment from the last financial year
Bendigo Bank12.79% p.a.From $2,000No-
Citibank20.49% p.a.$5,000 to $75,000yes
  • Accountant's name and contact number
  • Name of their accounting firm
Commonwealth Bank11.50% p.a.$4,000 to $50,000yes
  • Two years of tax returns or financial statements
  • Most recent ATO Notice of Assessment
CUA11.89% p.a.$5,000 to $60,000No-
Gateway Bank9.84% p.a.$3,000 to $30,000yes
  • Details regarding your income
IMB9.54% p.a.$2,000 to $30,000yes
  • Two years of fully lodged tax returns
  • ATO Notice of Assessment
Latitude Financial7.99% p.a.$3,000 to $70,000yes
  • Tax return
ME Bank10.98% p.a.$5,000 to $50,000yes
  • Two years of tax returns
  • ATO Notice of Assessment
MoneyMe6.25% p.a.$2,100 to $50,000yes
  • Industry
  • Company name
  • Work phone number
NAB6.99% p.a.$5,000 to $55,000yes
  • Most recent personal income tax return
  • Most recent ATO Notice of Assessment
Plenti6.39% p.a.$2,001 to $50,000yes
  • Proof of your income for the last two years
RACQ9.34% p.a.$3,000 to $60,000yes
  • Proof of income
RACV6.49% p.a.$5,000 to $30,000yes
  • Proof of income
SocietyOne6.39% p.a.$5,000 to $50,000yes
  • Proof of income
St.George12.99% p.a.$2,000 to $50,000yes
  • Recent tax information
Westpac9.99% p.a.$4,000 to $50,000yes
  • Proof of a regular permanent income

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 rateMake 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 timeDepending 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.
EligibilityBefore 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 processWhen 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 costMake sure you're aware of all fees associated with each loan. This includes any one-off or ongoing fees.
Secured vs unsecuredAlways 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.

Frequently asked questions


Image: Shutterstock

More guides on Finder

  • 86 400 Neat home loan – variable

    This flexible variable rate home loan offer from a digital lender is suitable for both home buyers and investors.

  • 86 400 Own home loan – fixed

    Check out this flexible fixed rate offer from a digital lender. Rates for home buyers and investors.

  • Citi Rewards Card – Bonus Points Offer

    Earn flexible rewards points as you spend and enjoy a big 100,000 bonus points offer with the Citi Rewards Credit Card.

  • 7-Eleven Fuel Pass

    Save on fuel at 7-Eleven with this fuel card you can use across the WEX Motorpass network.

  • HSBC Platinum Credit Card

    This card offers 0% interest on balance transfers for 36 months, a discounted $29 first year annual fee and platinum benefits including airport lounge passes and complimentary insurance covers.

  • Citi Rewards Card – Velocity Points Offer

    Enjoy 100,000 bonus Velocity Points, a reduced first-year annual fee and points per $1 spent with the Citi Rewards credit card.

  • Living DNA vs 23andMe

    Choose between two leading DNA testing companies who can help you map your ancestry and genetics.

  • MyHeritage vs 23andMe

    Discover the main differences between two leading DNA testing services, from pricing to privacy.

  • American Express Velocity Business Card

    The American Express Velocity Business Card earns points per $1 spent and offers complimentary travel insurance and two complimentary Virgin Australia lounge passes each year.

  • The American Express Business Card

    The American Express Business Card offers reliable service, a wide range of benefits, additional features, and competitive fees.

Personal Loan Offers

Important Information*
Logo for Harmoney Unsecured Personal Loan
Harmoney Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 24.79% p.a. based on your risk profile.
Apply for a loan up to $50,000 and repay your loan over 3 or 5 years terms.

Logo for ANZ Fixed Rate Personal Loan
ANZ Fixed Rate Personal Loan

You'll receive a fixed rate of 10.5% p.a.
Apply for up to $50,000 to use for a variety of purposes without needing to add security. Available to self-employed applicants.

Logo for NAB Personal Loan Unsecured Fixed
NAB Personal Loan Unsecured Fixed

You'll receive a fixed rate between 6.99% p.a. and 18.99% p.a. ( 7.91% p.a. to 19.83% p.a. comparison rate) based on your risk profile
An unsecured loan up to $55,000 you can use for a range of purposes and pay off over up to 7 years. Note: Majority of customers will get the headline rate of 12.69% p.a. (13.56% p.a. comparison rate) or less. See Comparison rate warning in (i) above.

Logo for SocietyOne Unsecured Personal Loan
SocietyOne Unsecured Personal Loan

You'll receive a fixed rate between 6.99% p.a. and 20.49% p.a. based on your risk profile
A loan from $5,000 to use for a range of purposes. Benefit from no ongoing fees and no early repayment fee.

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.

2 Responses

    Default Gravatar
    RupeshJuly 16, 2017

    I need a loans required for business growth and development. Can I help you.

      Default Gravatar
      DanielleJuly 16, 2017

      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

Go to site