- Self-employed individuals can still get a personal loan, but lenders may ask for additional proof of income.
- Approval can be harder because self-employed income is often less consistent and doesn’t come with payslips.
- Having clear, up-to-date documents may help improve your chances of getting approved for a personal loan as a self-employed borrower.
Running your own business can mean freedom and flexibility. However, when you apply for a personal loan , lenders often want more proof you can comfortably repay it. If your income goes up and down, or you don’t have payslips, the “show us your income” step can get a bit more involved.
And you’re not alone. ABS data shows that in August 2025, there were 1.1 million independent contractors, making up 7.6% of all employed people.
So, if so many Australians earn money outside the standard PAYG setup, why is it considered harder to get a personal loan when you’re self-employed? Let’s break it down, including your options, and how to improve your chances of approval.
Read Also: Everything you need to know about personal loans
Can you get a personal loan if you’re self-employed?
Yes, you can get a personal loan if you’re self-employed, but you may need to provide different (or additional) documents compared to a regular employee.
Most lenders aren’t offering a totally separate “self-employed personal loan” product. In many cases, it’s the same personal loan, but with a different income verification process because you may not have payslips or a steady salary, which many lenders require when deciding on your loan approval.
Lenders also have legal obligations around assessing suitability and affordability (often referred to as “responsible lending”), which is why they’ll ask questions and request evidence.
When shopping around for loans, check each lender's lending criteria to make sure you qualify or talk to one of their lending specialists prior to applying.
In the market for a personal loan? The table below features personal loans with some of the lowest interest rates on the market.
| Lender | Car Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Interest Type | Secured Type | Early Exit Fee | Ongoing Fee | Upfront Fee | Total Repayment | Early Repayment | Instant Approval | Online Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.24% p.a. | 6.95% p.a. | $389 | Variable | Unsecured | $0 | $10 | $495 | $23,334 | |||||||||||
5.95% p.a. | 5.95% p.a. | $386 | Fixed | Unsecured | $0 | $0 | $0 | $23,171 | |||||||||||
5.76% p.a. | 5.76% p.a. | $384 | Fixed | Unsecured | $0 | $0 | $275 | $23,066 |
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Why self-employed loan applications can be harder
Here are the big reasons lenders may be more cautious:
- Income can be variable – Busy months and slow months can make repayment capacity harder to estimate.
- Less “standard” paperwork – Employees often have payslips and consistent salary credits; business owners may not.
- Short trading history – If you’re newly self-employed, some lenders may see it as higher risk (though policies vary by lender and circumstances).
- Business and personal finances can blur – If your accounts are mixed, it can be harder to show what you personally earn.
- Quick tip: You can usually improve your odds by tightening up your documentation and presenting a clear, consistent picture of your income. Many lenders ask for your most recent tax return and ATO Notice of Assessment, and may also request business bank statements and/or business financials depending on your situation.
What is a self-employed personal loan?
A “self-employed personal loan” is simply a personal loan you apply for as a self-employed borrower, typically with extra emphasis on verifying income.
The loan itself works like other personal loans:
- You borrow a lump sum
- You repay it over a set term
- You pay interest (and sometimes fees)
What changes is what the lender may ask you to provide to confirm your income and financial position.
What types of personal loans can the self-employed get?
There is a range of personal loan options available to the self-employed. Keep in mind, different lenders have different lending criteria, so you may have to shop around. Common options include:
Standard personal loans
Provided you qualify, a self-employed person may be able to borrow with a standard personal loan, either secured or unsecured .
- Secured personal loan – Backed by an asset, typically the one being financed by the loan (commonly a car), so it’s lower risk for lenders, and rates can be lower
- Unsecured personal loan – No asset security. Higher risk for the lender, thus rates can be higher.
Low doc personal loans
Low doc personal loan (low documentation) generally means the lender accepts alternative income verification. It can suit some self-employed borrowers, but it can also come with:
- Higher interest rates
- More fees
- Stricter conditions
- Take note: A truly “no-doc” consumer lending is uncommon with mainstream lenders, because lenders still need to make reasonable checks about affordability and suitability.
Peer-to-peer (P2P) loans
Peer-to-peer (P2P) or marketplace lending is where an online platform matches borrowers with investors who fund loans (often personal loans that are typically unsecured).
- Take note: If the loan is a consumer loan, the parties involved in entering the loan and operating the platform generally need to hold (or operate under) an Australian credit licence and comply with the National Credit Act and National Credit Code.
How to apply for a self-employed personal loan
Before applying for a self-employed personal loan, it’s a good idea to ensure you have all the necessary paperwork a lender may require. Lender requirements may vary, but the steps for a loan application are pretty much the same.
Step 1: Get your paperwork ready
To avoid delays, try to have the following ready (adjust depending on what your lender asks for):
- Latest tax return and ATO Notice of Assessment (NOA)
- Recent business bank statements
- Business financials (Profit & Loss, Balance Sheet) if required
- Evidence of other income (rental, dividends, etc.) if relevant
- ID documents and ABN/ACN details
Step 2: Compare lenders and narrow your shortlist
Here are the things to look for when shopping around for a self-employed personal loan:
- Interest rate and whether it’s fixed or variable
- Fees (upfront and ongoing)
- Loan term and repayment flexibility
- Eligibility rules for self-employed applicants
- Timeframes for approval and funding
Step 3: Apply with the strongest application you can
Submit your documents in full, and make sure:
- Your income evidence is clear and consistent
- Your bank statements don’t show frequent dishonours/overdraft spirals
- Your existing debts are accurately declared
Step 4: Review the contract carefully
Check the following before signing any documents:
- Total repayments and fees
- Early repayment rules (and any break/exit fees)
- Direct debit dates and what happens if a payment fails
How to compare self-employed personal loans
Interest rate
Aim for the lowest rate you can qualify for, but also consider whether you will get a personal loan with a fixed or variable rate .
- Fixed rate – Repayments are predictable, but flexibility can be limited.
- Variable rate – May offer more flexibility, but repayments can change.
Fees
Fees can wipe out the benefit of a low rate. Always check the comparison rate as it combines the interest rate plus most fees and charges into a single figure – helpful for comparing like-for-like.
Know the common personal loan fees here.
Loan term
Personal loan terms are often up to around 5-7 years (varies by lender). A longer term can lower repayments, but increases total interest over time.
Lender reputation and customer experience
If you’re under pressure and need quick cash, it’s easier to get steered into high-cost products. Be especially cautious with payday-style lending.
Learn more about payday loans here.
Security requirements
A secured loan can be cheaper, but your asset is on the line. Make sure you understand what happens if you can’t repay.
Eligibility rules and processing time
Some lenders move quickly once documents are complete; others take longer. Ask what their typical approval and funding timeline is, especially if timing matters.
Alternatives to self-employed personal loans
If a personal loan isn’t working for you, a few alternatives may be worth considering:
Guarantor personal loan
A guarantor (often a family member) agrees to cover repayments if you can’t. That extra safety net can make approval easier, but it also puts pressure and risk on the guarantor, so it needs to be handled carefully.
Other options (depending on what the money is for)
- Using savings (if available) or delaying the purchase
- A lower loan amount to reduce risk and repayments
- If the purpose is business-related, a business finance product may be more appropriate (and assessed differently)
Savings.com.au’s two cents
It’s not easy going it alone in business, and lenders often don’t make it simple to access credit. One of the best ways to improve your chances of approval is to have your documentation ready and keep your finances tidy before you hit the apply button.
Before you borrow, make sure you plan for dips in profit or earnings. Your loan repayments will usually stay the same for the life of the loan, but your income might not, so build a buffer (even a small one) and make sure you’ve got a fallback plan if cash flow tightens.