Compare low doc personal loans
If you’re self-employed and don’t quite have the documents you need to qualify for a standard personal loan, it’s important to know you still have options when it comes to financing. Consider your low doc personal loan options right here from Savvy’s panel of flexible lenders today.
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|Wisr Unsecured Personal Loan|
Borrow between $5,000 and $64,000 with great low rates for excellent credit. Get a personalised rate estimate in 2 minutes that won't impact your credit score.More details
|Plenti Unsecured Personal Loan (Excellent Credit)|
Apply for an unsecured personal loan and enjoy low rates for excellent credit. With no early repayment or exit fees, there’s a lot to love about this loan.More details
|OurMoneyMarket Unsecured Personal Loan|
Apply for an unsecured personal loan between $2001 to $75,000 for a variety of loan purposes. Get a personalised rate estimate in minutes without impact your credit score.More details
|Harmoney Unsecured Personal Loan|
Borrow up to $70,000 with personalised rates and repay over 3,5 or 7 years loan terms.More details
Disclaimer: A comparison rate indicates the true cost of a loan. The comparison rate displayed for this advertiser is calculated based on a loan amount of $30,000 over 5 years and represents the effective rate on the loan. Comparison rates are true only for the examples provided and may not include all fees and charges. Different terms, fees or loan amounts might result in a different comparison rate.
The features and benefits of low doc personal loans
These loans are great for self-employed workers who don’t quite have the funds to cover their expenses but don’t have the last two years’ worth of tax returns.
You can utilise documents such as BAS, bank and profit and loss statements, ABN and GST registration and an income declaration instead of your returns.
You can apply for any amount between $2,000 and $10,000, making them versatile for both smaller and more substantial expenses that need to be covered.
On top of your income from your business, you can have other income streams such as casual and Centrelink earnings included in your overall income.
Why Australians choose Savvy to help find low doc personal loans
Low doc personal loans explained
What are low doc personal loans?
When applying for finance, you need to submit documents to prove that you can financially afford to repay the debt. Sometimes people do not have, or are not able to provide the necessary documentation required for a standard personal loan. A low doc personal loan accepts alternative documents when assessing eligibility.
Low doc doesn’t mean that you can get finance without convincing the lender that you can afford it. It simply means they will accept alternative documents and verification of your financial history.
Who are low doc loans for?
Lenders commonly use low doc personal loans for self employed people. This is because business owners and those who are self employed may have difficulty proving their income amount as they typically do not receive payslips or group certificates.
Will I need to prove my income?
Under the National Consumer Credit Protection Act 2009 (NCCP), lenders must assess if the product is going to be unsuitable for you. This includes verifying your income to ensure you are able to afford the debt. Under a low doc basis, a lender will ask for alternative documents to satisfy affordability requirements.
Documentation requirements vary across lenders, but there is a range of documents that may be used. Some documents that may be accepted are:
- Business Activity Statements (BAS) for the past 12 months
- Bank statements
- Details regarding your ABN registration
- Evidence of GST registration for at least 12 months
- A letter from your accountant verifying your income
- Potentially Profit and loss statements from accounting system
- Your current balance sheet for accounting system
- Australian driver’s license or passport to prove your identity
What are the benefits of a low doc personal loan?
Without accepting alternative forms of documentation when assessing an application, people with limited financial documentation may need to resort to more expensive finance options such as payday lending that have higher fees in comparison. By providing a low doc alternative to regular personal loans, self-employed people, and anyone with limited financial documents are able to access more affordable finance for larger amounts.
Top tips for getting approved for a low doc personal loan
A high credit score increases your chances of being approved as it shows the lender that you are committed to paying your bills and debts consistently on time.
Having a guarantor on your application could be the factor that gets you across the line. The guarantor is not required to help you make repayments, but it ensures the loan will be repaid if you default.
If you are unable to get approval on your own, consider applying with another person. Keep in mind that both people are responsible for the loan, so this is suited to a spouse or business partner.