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Self-employed loans in Canada

If you’re self-employed and in need of funds, you may be able to qualify for a personal loan online.


Loans Canada Personal Loan

Loans Canada Personal Loan logo
  • Rates from 2.00% to 46.96%
  • Loan term from 3 - 60 months
  • Same day funding
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Name Product Interest Rate Loan Amount Loan Term Requirements Credit Score Link
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 5.75%-46.96%
$500 - $50,000
3 - 120 months
Currents debts must total less than 60% of income
Min. credit score: 300
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An online broker who helps inform clients towards better finances. Get pre-approved by different lenders for unsecured or secured loans in 5 minutes with any credit score.
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$300 - $50,000
3 - 60 months
No min. income or employment requirements
Min. credit score: 300
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An online broker with the largest lender network in Canada. Get matched for free with lenders offering both unsecured and secured loans through one quick application regardless of your financial situation.
Fairstone Personal Loan (Secured)
19.99% - 23.99%
$5,000 - $50,000
60 - 120 months
Must be a homeowner
Min. credit score: 560
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Use your home equity to get a secured loan up to $50,000 with flexible repayment options and a long loan term. Get a quote without impacting your credit score.
Alpine Credits Home Equity Loan
10.00% - 22.99%
$10,000 - $500,000
Up to 60 months
Must be a homeowner
Min. credit score: 300
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Alpine Credits offer home equity loans in amounts from $10,000 to $500,000. Must be a homeowner to qualify. Check eligibility for this loan through LoanConnect.
Loans Canada Vehicle Title Loan
Loans Canada Vehicle Title Loan
0% to 29.99%
$500 - $35,000
3 - 96 months
Min. income of $1,800 /month, 3+ months employed
Min. credit score: 300
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Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.

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How can I get a personal loan if I’m self-employed?

You can apply for any standard personal loan as long as you can meet the eligibility requirements. If you can’t meet the requirements, you can also apply for a cosigner loan, which allows you to apply with another person who may have stronger qualifications.

Depending on your lender, you may be required to put up collateral as security for your loan.

What documents will I need to provide for self-employed loans?

First, review the eligibility criteria of the lender to make sure that you’ll be able to provide the documents and show proof of a regular income — this is very important. Lenders usually require any or all of the following documents for self-employed loans in Canada:

  • Tax returns. Be prepared to show the last two years of your full personal and company tax returns. These will help prove any income you declare on your application.
  • Financial statements. These may include any profit and loss statements from your business to also support the income you declare.
  • 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 name, address, etc.
  • Personal identification. Depending on the lender, this may be your driver’s license, passport or other form of valid government-issued ID. 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.

In addition to providing this information, you will usually need to meet the following requirements:

  • Be 18 years of age, or the age of majority in your province or territory
  • Be a Canadian citizen or a permanent resident with a valid Canadian address
  • Have proof of an income
  • Have a working bank account
  • Meet any income and credit score requirements

Are loans for self-employed people more expensive than regular personal loans?

Not necessarily. The rates and terms your ultimately offered will depend on the lender you apply with, their underwriting criteria and your qualifications including credit score, income and debt-to-income ratio (DTI).

Lenders may view your application as more risky if your income fluctuates a lot and in turn offer you a loan at a higher interest rate to mitigate that risk. Keep in mind that if you don’t qualify on your own, you could apply for a cosigner loan with someone who’s willing to be responsible for the loan should you be unable to make payments.

Can I get self-employed loans with bad credit?

Yes, there are loans for self-employed with bad credit. Although getting a loan from a traditional lender like a bank might be hard to do, many online lenders will consider applicants with credit scores as low as 300.

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How do I compare my options for self-employed loans?

To find the best loan for you, consider the following factors when comparing self-employed loans in Canada:

  • 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 increase at any time.
  • Turnaround time. Depending on why you’re applying for the loan, you may need your funds disbursed as quickly as possible. Some lenders can release funds within one business day, while others may take several days.
  • Eligibility. Before applying for a loan, check what the eligibility requirements are. Also, avoid applying for too many loans, as lenders will 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-time or ongoing fees.
  • Collateral required. 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.

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