Compare personal loans for the self-employed

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.

8 providers that accept self-employed applicants

Lender	Starting interest rate	Loan amounts	Available to self-employed applicants?	What documents are needed?
LendingClub	10.68%	to		Income verification varies, often requires tax records	Go to site
OneMain	18% to 35.99%*	to		Most recent tax returns
Even Financial	4.99%	to		Varies by lender, as this is a loan-connection service	Go to site
Prosper	7.95%	to		Bank statement and recent tax information Business license, if applicable	Go to site
LendingPoint	9.99%	to		Most recent bank statements Proof of income	Go to site
Avant	9.95%	to		Two most recent years’ official tax documentation accompanied by any cover pages or leading pages, or a copy of your Tax Return Transcripts	Go to site
SoFi	5.99%	to		Two years of personal tax returns, and business tax returns if applicable Year to date profit and loss statement	Go to site
Payoff	5.99%	to		Most recent tax return	Go to site

_{*Annual percentage rate (APR) of 18.49% represents APR for top 10% of loans booked in January 2017 through March 2017. Maximum APR is 35.99%, subject to state restrictions. APRs are generally higher on loans not secured by a vehicle. Active duty military, their spouse or dependents covered under the Military Lending Act may not pledge any vehicle as collateral for a loan.}

What documentation do I need to provide?

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:

• 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 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.
• 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 EIN, address, etc.
• Personal identification. Depending on the lender, this may be your driver’s license, passport or state 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.

Other documents you can expect to provide on a personal loan application

Are loans for self-employed people more expensive that 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.

How can I compare my options?

The following factors can be weighed when comparing the loans offered by different lenders to find the best deal for you:

• 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 go up 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 is able to 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, 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-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. Security could include assets such as your home or car.

Frequently asked questions

• How much can I apply for?

  This depends on several factors such as your particular lender, your requested loan amount and how well you meet eligibility requirements. You can always find out the minimum and maximum loan amounts offered by a lender by clicking through to the particular lender’s review page using the table on this page.

• What if I'm set up as a sole proprietor?

  You can still apply for a personal loan. You might find that you also qualify for some business loans as sole proprietor.

• What pitfalls should I avoid when applying?

  Make sure you understand exactly what you need the loan for and avoid getting stuck in too much debt. This means that you should avoid applying for loans if you don’t actually need them. Also, make sure you never apply for more money than you actually need.

• What are some extra tips to help me qualify as a self-employed applicant?

  First, always check you that meet all eligibility and documentation requirements before applying for a loan. Secondly, consider having a cosigner on your loan to help alleviate any hesitation of the lender. Finally, you can file a joint application with another person, where you and the second party would be equally responsible for the requested loan.

• Can I get a personal loan if I work part-time?

  You can, though like with self-employed borrowers, your options might be limited — and you’ll have to submit documentation proving that you regularly bring in enough money to afford your repayments. Check out our guide to loans for part-time employees to learn more about what’s available to you.

• Can I get a personal loan without proof of income?

  It might be possible to find a personal loan without any proof of income in some states, but you’ll likely be limited to short-term loans. Many states have laws requiring lenders to have proof that you’re able repay your loan.

  You might want to consider other options if you don’t have documentation of regular income like borrowing from friends and family.

You might as long as you have money coming in. Remember, income doesn’t necessarily have to come from a job — some lenders accept government benefits, pensions and any other regular money you have coming in as income.

You might also be able to qualify for a loan based on your future salary if you have a job offer.