Compare personal loans for self-employed workers
Regardless of whether you’re self-employed, you can qualify for a personal loan through one of Savvy’s lending partners. Compare a range of finance offers to suit your needs right here, with competitive rates and flexible features helping you cover whatever expenses you need.
I want to borrow:
Over how long?
|Harmoney Unsecured Personal Loan|
Borrow up to $70,000 with personalised rates and repay over 3,5 or 7 years loan terms.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
|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
|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
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 of self-employed personal loans
You can fix your interest rate across your loan term, enabling you to lock in an affordable rate at the beginning and guarantee it remains the same across your term.
By selecting a period over which to repay your loan, you have a say in the affordability and cost of your personal loan by shaping the cost of each instalment.
Personal loans are highly flexible in how they can be used, with amounts ranging from as little as $2,000 all the way up to $75,000, making them suitable for many purposes.
Instead of utilising a payslip as part of your personal loan application, you can supply your lender with the two most recent years’ worth of tax returns.
One of the many reasons you may wish to take out a personal loan is to cover outstanding loan debt, which will help you bring it under one single payment to make it more manageable.
Even if you have a bad credit score, whether that be through setting up your business or otherwise, there are bad credit personal loan options available to you.
Your loan application can be approved in just 60 seconds after submission, with funds able to land in your account in as few as 24 hours thereafter.
If you earn other income from part-time or casual employment, or receive benefits from Centrelink, we can help you compare flexible lenders who can work with your situation.
Why you should compare personal loans with Savvy
Self employed personal loans explained
Is it more difficult to get a personal loan for self-employed people?
It’s not necessarily more difficult, but you’ll face some different application requirements. Lenders may view personal loans for self-employed people as being high-risk if you’ve only been running your business for a relatively short period of time. Doing so means you don’t necessarily have the luxury of a stable income in the same way as a pay as you go (PAYG) employee.
The main concern of a lender when assessing any finance application is that the borrower will make their repayments. As a self-employed person, you need to find appropriate documentation to demonstrate that is possible. You can’t just show your regular payslips from your employer as employees can.
What documentation do you need to apply for a personal loan for self-employed people?
You need to provide as much evidence of your income and your ability to repay the loan as possible. This should include your most recent:
- tax returns
- financial statements for your business
Providing this information for the past two or three financial years will help the lender assess your application. Depending on their lending policy, lenders may take an average of the income you’ve earned over that period. They may even take a conservative approach and use the lowest figure.
Your business financial statements should include your income statement, balance sheet and business activity statements (BAS). Ideally, these statements should have been prepared by an accountant.
Are ‘low doc’ or ‘no doc’ options available as personal loans for self-employed people?
Some lenders may accept ‘low doc’ or ‘no doc’ personal loan for self-employed applications. ‘Low doc’ is an abbreviation for ‘low documentation’. ‘No doc’ is an abbreviation for ‘no documentation’.
If you apply for one of these loans, you’ll usually have to sign a declaration of the income statement. You do this instead of providing the standard documentation typically required. You may also need to supply:
- an accountant’s letter,
- your ABN number,
- your GST registration, and
- any BAS that you can.
However, you should only apply for this type of finance if you can’t provide the standard documentation. ‘Low doc’ and ‘no-doc’ finance has higher interest rates than standard personal loans for self-employed people.
The table below compares ‘low doc’ and ‘full doc’ loan interest on a $25,000 debt over seven years. ‘Low doc’ finance usually has a loading of 3% or more to compensate the lender for the increased risk.
|Type of loan||Interest rate||Total interest payable|
Is a secured personal loan for self-employed people an option?
Yes – and applying for one will improve your chances of being approved. It will also help you to get finance on better terms and conditions because it lowers the lender’s risk.
A secured loan requires you to offer an asset as collateral security to the lender. For example, your vehicle on a car loan. If you don’t make your repayments, the lender can legally repossess your car. They can then sell it to recover your debt.
An unsecured loan is your other option. It doesn’t require you to put up an asset as collateral security. However, it’s important to understand that unsecured finance interest rates are higher. This compensates the lender for the increased risk.