Compare personal loans you could get while self-employed April 2018

Compare personal loans for the self-employed

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

You may feel let down by the eligibility requirements for a personal loan, especially if you have difficulty proving your income or any assets. However, there are options available from both traditional and non-traditional lenders offering personal loans to self-employed individuals.

The more you know about your options, along with how the process works and what documents you’ll need, the better your chances of a lender approving your application.

Prosper

Personal Loans through Prosper

You could borrow up to $35,000 for a variety of purposes, with rates from 5.99%–35.99%%.

  • Recommended Credit Score: 640 or higher
  • Minimum Loan Amount: $2,000
  • Maximum Loan Amount: $35,000
  • Loan Term: 3 or 5 years
  • Turnaround Time: 1-3 business days
  • Simple online application process
  • No prepayment penalties

    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.

    Lenders that accept self-employed applicants

    LenderStarting interest rateLoan amountsAvailable to self-employed applicants?What documents are needed?
    Prosper5.99%$2,000 to $35,000yes
    • Bank statement and recent tax information
    • Business license, if applicable
    LendingClub5.98%$1,000 to $40,000yes
    • Income verification varies, often requires tax records
    Avant9.95%$2,000 to $35,000*yes
    • Two most recent years’ official tax documentation accompanied by any cover pages or leading pages, or a copy of your Tax Return Transcripts
    SoFi5.49%$5,000 to $100,000yes
    • Two years of personal tax returns, and business tax returns if applicable
    • Year to date profit and loss statement
    Payoff5.94%$5,000 to $35,000yes
    • Most recent tax return
    LendingPoint15.49%$2,000 to $25,000yes
    • Most recent bank statements
    • Proof of income
    OneMaintypically around 18.49%*%$1,500 (subject to state minimum size restrictions) to $25,000yes
    • Most recent tax returns
    Even Financial4.99%$1,000 to $100,000yes
    • Varies by lender, as this is a loan-connection service

    What documentation will 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.

    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.

    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

    Was this content helpful to you? No  Yes

    Ask an Expert

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

    • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
    • finder.com 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 and Conditions and Privacy Policy.

    US Personal Loans Offers

    Important Information*
    Even Financial Personal Loans

    Get connected to competitive loan offers instantly from top online consumer lenders.

    Prosper

    Borrow only what you need for debt consolidation, home improvements and more — with APRs based on overall creditworthiness.

    LendingClub Personal Loan

    A peer-to-peer lender offering fair rates based on your credit score.

    SoFi Personal Loan Fixed Rate (with Autopay)

    Borrow up to $100,000 with a competitive APR and no fees.

    Go to site