Self-employed borrowers might be able to submit tax returns, bank statements, or other documentation as proof of income for a personal loan.
Editorial disclosure: Please note that this article contains affiliate links. If you click through and purchase a product from one of our advertising or lending partners, we may earn a commission. The amount of commissions do not affect our editors opinions or recommendations. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.” Please read our affiliate disclosure for more information.
A common requirement when applying for a personal loan is proof of income. This could be a challenge if you’re self-employed, especially if your income is irregular or difficult to prove.
However, there are several lenders willing to work with self-employed borrowers that offer other paths to approval besides a typical pay stub or W-2, such as tax returns and invoices, or that allow borrowers to attach a cosigner or collateral to the loan. Approval will be easiest if you have good to excellent credit. For example, the average APR for borrowers with a FICO score of 720 to 779 was 16.59% in November 2023, according to Credible data on three-year loans.
Being self-employed comes with many perks like flexible hours and being your own boss. However, it also comes with some challenges, especially when it comes to getting a loan. Traditional lenders usually require proof of income, like pay stubs or tax returns, which self-employed people don’t have. So what options do you have if you need a loan but have no steady paycheck to prove your income?
There are a few routes you can take to get financing, even with limited documentation. While it may take more effort than applying through your regular bank, having a few options in your back pocket can provide peace of mind.
Why Do Lenders Want Proof of Income?
Before diving into loan options it helps to understand why lenders ask for proof of income in the first place. At its core, lending is a risk-based business. Before a lender gives you money they want to know the likelihood that you’ll pay it back as agreed.
Looking at your income helps them gauge your ability to make timely loan payments. If you earn $5,000 per month, for example, they can determine how much they’re comfortable lending based on your existing obligations
Steady income like a paycheck gives them confidence you can handle another monthly loan payment. With self-employed borrowers, they are missing that predictable income stream to base decisions on.
Can I Get a Personal Loan Without Proof of Income?
When you don’t have tax returns or pay stubs to supply getting a personal loan becomes trickier but isn’t impossible. A few options exist that may work for self-employed borrowers including
-
Secured personal loans: Also called collateral loans, these require an asset like a savings account or vehicle as security. The lender can seize the asset if you default. The collateral reduces their risk, so income isn’t as crucial.
-
Low-doc loans: Here the lender confirms you have regular cash deposits. They may review bank statements rather than tax documents. These loans offer more flexibility but may have higher rates or fees.
-
P2P lending: Peer-to-peer platforms like Prosper, LendingClub, and Upgrade have individual investors fund loans. Investors set their own criteria, which may downplay income docs.
-
Credit builder loans: Designed to help establish credit history, these loans aren’t based on income. You make monthly payments into a secured savings account you get back at loan maturity.
-
Business loans: Some lenders offer financing based on business revenue and assets rather than personal income. You provide business tax returns and bank statements instead.
Each option has pros and cons to weigh, but they demonstrate there are alternatives when you don’t have traditional income verification handy.
5 Tips for Getting a Personal Loan Without Proof of Income
If you decide to apply for a personal loan without income documentation, use these tips to boost your chances of approval:
1. Check your credit – With limited income verification, lenders lean more heavily on your credit reports and scores. Good credit won’t guarantee approval, but it can offset concerns over missing income docs.
2. Lower the requested amount – Asking to borrow less may ease worries over repayment ability. Lenders feel more comfortable lending smaller sums without income verification.
3. Bring bank statements – Having regular deposits helps assure lenders you have sufficient cash flow. Highlight reliable income sources like client payments or 1099s.
4. Offer an asset as collateral – Putting up an asset like a car or securities account reduces the lender’s risk. In exchange, they may relax income requirements.
5. Enlist a cosigner – A cosigner with high income joins your application. Their income gets factored in, boosting the chances of approval. Make sure they understand the obligation they are taking on.
Preparing a thorough application and getting your ducks in a row can demonstrate that you are still a low-risk borrower, even without typical income documents.
What About Loans With No Income Verification?
While rare, some specialized lenders offer true no income verification loans. With these, income isn’t checked at all. Approval may depend on factors like:
- Credit scores
- Assets or collateral
- Other debts
- Industry experience
The loans often have higher rates and fees to offset the increased risk posed by missing income verification. Borrowing amounts tend to be lower as well, usually under $15,000.
Examples of no income check loans include:
-
Title loans – these use your car title as collateral. The lender lends a percentage of the car’s value and keeps the title until you repay the loan. Interest rates are steep.
-
Pawn shop loans – you get a loan based on a percentage of the assessed value of an item you pawn. Rates are high and if you default the item is forfeited.
-
Payday loans – small, short-term loans where your next paycheck acts as collateral. Fees are very high when expressed as APRs.
While easier to qualify for, these loans should be viewed as options of last resort due to their high costs. Exhaust other alternatives first before resorting to loans with no income checks at all.
5 Alternatives to Loans for the Self-Employed
If you are striking out getting a loan without income proof, here are some options to consider beyond high-cost no income verification loans:
1. Business credit cards – Cards like the Ink Business cards from Chase don’t require personal income documentation. You provide business details instead.
2. 401(k) loan – If you have a 401(k) through self-employment, you may be able to borrow against it. The money gets repaid via payroll deduction.
3. Home equity loan – If you are a homeowner, home equity loans and lines let you borrow against your equity. Underwriting focuses on equity and credit scores rather than income.
4. Hard money loans – These specialty loans are based on asset value, not income. They meet short-term needs but have high rates and fees.
5. Grants – Non-profits, government agencies, or other groups offer grants for self-employed individuals or small business owners. While not very common, grants don’t need to be repaid like loans.
Creativity and persistence are key when seeking financing without traditional income. Weigh all your options and think outside the box to find a loan or alternative solution that best fits your situation.
FAQs About Loans for the Self-Employed
Here are answers to some frequently asked questions about getting loans without proof of income:
Q: What documents do I need to apply for a personal loan if self-employed?
You may need to provide business tax returns, 1099s, bank statements, profit and loss statements, W9 forms, and business licenses. Having organized records will help demonstrate you are a legitimate business.
Q: What credit score is needed for a personal loan with no income proof?
There aren’t hard rules, but credit scores above 670 will likely get more positive results. Because income isn’t there to review, lenders lean more heavily on credit reports.
Q: Where can I get a small personal loan fast without income verification?
Your fastest options are usually secured loans, payday loans, pawn shops, or credit cards. However, these carry risks like high costs or losing collateral. Avoid these types of loans whenever possible.
Q: What if I have bad credit and no proof of income?
Without good credit or income documentation, unfortunately your loan options are very limited. The only real possibilities are pawn shops, payday lenders, or hard money loans. In the long run, you are better off working to build credit and saving money rather than using these high-cost financing sources.
Q: Can I get approved for a mortgage or auto loan if self-employed?
Mortgages and auto loans generally require extensive income documentation. However, some specialty lenders like Bank Statement Mortgage Loans or DriveTime may offer exceptions for self-employed borrowers. Expect higher fees and rates for the added risk.
Q: Where can I get a personal loan with low income requirements?
Lenders like Avant, Upstart, and Opploans don’t have high minimum income requirements. They also use alternative data for approval decisions beyond just income. Minimum credit scores still apply with these lenders.
The Bottom Line
Getting approved for financing without proof of income presents challenges. While possible in some cases, expect options to be limited, costs to be higher, and loan amounts to be lower.
Maximize your chances by maintaining excellent credit, offering collateral, bringing detailed records, and seeking lenders who offer flexible programs. With extra effort, you can still find loans tailored to self-employed borrowers who can’t supply income documentation.
How to get a personal loan when you’re self-employed
If you’re ready to take out a personal loan, follow these four steps:
- Shop around and compare lenders: Research and compare as many personal loan lenders as possible to find the right loan for you. Consider not only interest rates but also repayment terms, any fees charged by the lender, and requirements for self-employed borrowers. Also remember to check if the lender accepts cosigners, as having one might help you get approved if you’re having trouble proving your income.
- Choose your loan option: After comparing lenders, choose the loan option that best suits your needs.
- Complete the application: Once you’ve picked a lender, you’ll need to fill out a full application and submit any required documentation, such as tax returns or bank statements.
- Get your funds: If you’re approved, the lender will have you sign for the loan so your money can be sent to you. The time to fund for a personal loan is typically about one week — though some lenders offer fast personal loans that are funded as soon as the same or next business day after approval.
You typically need good to excellent credit to qualify for a personal loan. While some lenders offer personal loans for bad credit, these loans typically come with higher interest rates than good-credit loans.
If you’re struggling to get approved because of your credit, applying with a cosigner could improve your chances. Having a cosigner with a good score might also qualify you for a better interest rate than you’d get on your own.
Before you get a personal loan, it’s important to consider how much that loan will cost you over time. This way, you can be prepared for any added expenses. You can estimate how much you’ll pay for a loan using our personal loan calculator.
Learn More: How to Get a Personal Loan With a 600 Credit Score
9 lenders that work with self-employed borrowers
While some lenders don’t offer personal loans to self-employed borrowers, there are several that do. Here are several Credible partners that provide personal loans for the self-employed:
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, its also is one of few lenders that doesnt have a minimum credit score requirement (if you apply on the lenders website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesnt require your Social Security number to prequalify on its site. Youll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, youll need to go elsewhere, as Discover doesnt allow cosigners.
Funds are available as soon as the next business day after loan approval.
3 – 7 years
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you dont need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
2 to 7 years
Autopay and direct pay
Available in all states
Time to get funds
Credit card refinancing, debt consolidation, home improvement, major purchase, other
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. Its easy to prequalify with LendingClub, especially if youre uncomfortable providing your Social Security number, as the company doesnt require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that youll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, youre less likely to have your application declined once you apply (if youve already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Available in all 50 states
Time to get funds
Debt consolidation, paying off credit cards
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesnt require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you dont have good credit. You also wont be able to apply with a cosigner, since SoFi doesnt accept cosigners; nor does it offer secured personal loans.
2 – 7 years
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Available in all states
Phone, email, live chat
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Solely for personal, family, or household uses
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Powers Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. Youll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Origination fee, late fee, unsuccessful payment fee, check processing fee
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Credit card refinancing, debt consolidation, home improvement, and other purposes
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers whove prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Origination fee, late fee, dishonored payment fee
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Debt consolidation, emergency expense, life event, home improvement, and other purposes
1 to 5 years (2 to 5 years through Credible)
Happy Money has been in operation since 2009 (formerly known as Payoff). Its an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but thats not as high as some other lenders origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans arent available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 – 5 business days after verification
Debt consolidation and credit card consolidation only
If youre self-employed, Avant requires that you submit your two most recent years’ complete, official tax documentation.
Best for all credit types
3.9
Borrowers with bad credit considered
Funds as soon as the next business day
1-year loan terms available on Avants website
Not available in HI, IA, MA, ME, NY, VT, or WV
Avant personal loans are a good choice for borrowers with bad credit looking for small- to moderate-sized personal loans. Loans are available up to $35,000 and you could get the money as soon as the next business day after approval. Plus, Avant is more likely than some lenders to approve the applications of borrowers whove prequalified with Avant. However, the lender charges an origination fee up to 9.99%, and its top-range interest rates are among the highest of the lenders we reviewed.
Origination fee, late fee, dishonored payment fee
Available in all states except HI, IA, MA, ME, NY, VT, and WV
Time to get funds
As soon as the next business day (if approved by 4:30 p.m. CT on a weekday)
Debt consolidation, emergency expense, life event, home improvement, and other purposes
1 to 5 years (2 to 5 years through Credible)
Self-employed borrowers will need to provide their tax returns from the two most recent years to prove their income.
Best for low origination fees
3.9
Long loan terms available
May fund in 1 to 2 days
Low minimum income requirement
Available in all states
Trustpilot score of 4.9/5 stars
High minimum loan amount
Axos is one of few lenders that offers loans for business purposes. Plus, it has a low minimum income requirement, offers repayment terms up to 7 years, and is available in all states. But If you need a loan under $10,000, youll need to look elsewhere. While this lender may charge an origination fee, its fees are on the low side, topping out at 3%. Youll also want to have good credit to apply for a loan with Axos. You can expect to receive funds 1 to 2 business days after the loan is approved.
3, 4, 5, 6, 7 years
Available in all 50 states
Time to get funds
As soon as the next business day after successful verification
Debt consolidation, home improvement, self-employment, and other purposes
Best Egg works with borrowers who have a variety of employment statuses, such as salaried, self-employed, or retired.
Be sure to check with Best Egg to see what documentation you’ll need to provide.
Best for high close rates if pre-approved
4
Low minimum income requirement
Scored second in J.D. Powers Consumer Lending Satisfaction Study
Funds in 1-3 business days
High close rate on loans through Credible platform
Not available in DC, IA, VT, or WV
Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Powers Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. Youll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.
Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners).
Origination fee, late fee, unsuccessful payment fee, check processing fee
Available in all states except DC, IA, VT, and WV
Time to get funds
As soon as 1 to 3 business days after successful verification
Credit card refinancing, debt consolidation, home improvement, and other purposes
Self-employed borrowers will need to provide their two most recent years’ worth of tax returns to prove their income.
Best for no origination fees (and low rates)
4.4
May fund the next business day
Long loan terms available
Direct pay to creditors
Secured loans not available
Discover Personal Loans offers low APRs, repayment terms up to seven years, no origination fees, nationwide availability, and doesnt require your Social Security number to prequalify on its site. Youll need to have an annual income of at least $40,000, and a FICO score 660 or higher, to be eligible. If your credit score is fair or poor, youll need to go elsewhere, as Discover doesnt allow cosigners.
Funds are available as soon as the next business day after loan approval.
3 – 7 years
Available in all 50 states
Time to get funds
Funds can be sent as soon as the next business day after acceptance
Auto repair, credit card refinancing, debt consolidation, home remodel or repair, major purchase, medical expenses, taxes, vacation, and wedding
Self-employed borrowers will need to submit the first two pages of IRS Form 1040 along with the first two pages of either the Schedule C or K1 form.
Best for consolidating credit card debt
3.9
Limited loan terms available
Not available in MA or NV
Happy Money has been in operation since 2009 (formerly known as Payoff). Its an option for fair-credit borrowers (plus those with better credit), and notably has a relatively low top-end APR. In other words, you could qualify for a lower rate with Happy Money with fair credit, relative to other lenders that offer fair-credit loans. The company does charge an origination fee on some loans, up to 5%, but thats not as high as some other lenders origination fees.
You should be prepared to wait a few days to get your money, as funding can take three to five days once approved. And loans arent available in Massachusetts or Nevada. Happy Money has an A+ rating with the BBB and is ideal for debt consolidation and credit card consolidation loans.
Available in all states except MA, MS, NV, and OH
Time to get funds
As soon as 2 – 5 business days after verification
Debt consolidation and credit card consolidation only
If you’re self-employed, you’ll need to submit a recent tax return or other forms like a 1099 as proof of income.
4
Low minimum income requirement
High close rate on loans made through Credible
Available in all states
Funding not as fast as some competitors
LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. Its easy to prequalify with LendingClub, especially if youre uncomfortable providing your Social Security number, as the company doesnt require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)
While prequalification is not a guarantee that youll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, youre less likely to have your application declined once you apply (if youve already prequalified). LendingClub may charge an origination fee between 3% and 8%.
Available in all 50 states
Time to get funds
Debt consolidation, paying off credit cards
To potentially qualify for a loan, self-employed borrowers will generally need to show proof of consistent income through tax returns or bank statements.
In addition to income, SoFi will also consider your credit score, and education level.
4.9
Large loan amounts available
Autopay and direct pay discounts
Long loan terms available
5,000 minimum loan amount
SoFi stands out for offering no-fee personal loans with competitive rates, high loan amounts, long loan terms, discounts for autopay and direct pay, and funding as soon as the same day. Plus, SoFi prioritizes convenience for existing and potential customers with features like live chat and an easy prequalification process that doesnt require your Social Security number.
The main catch is that you need to qualify for a loan with SoFi, which can be hard to do if you dont have good credit. You also wont be able to apply with a cosigner, since SoFi doesnt accept cosigners; nor does it offer secured personal loans.
2 – 7 years
Option to pay an origination fee (up to 6%) in exchange for a lower rate
Available in all states
Phone, email, live chat
Time to get funds
Typically within a few days, given approval and bank account verification, but sometimes within the same day
Solely for personal, family, or household uses
To apply, self-employed borrowers must provide their two most recent tax returns.
Best for fair credit
4.5
Fair credit borrowers eligible
Autopay and direct pay discounts
Can fund in as little as 1 business day
High maximum origination fee
Cosigners not accepted on home improvement loans
Low J.D. Power ranking
Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you dont need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.
However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.
$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)
2 to 7 years
Autopay and direct pay
Available in all states
Time to get funds
Credit card refinancing, debt consolidation, home improvement, major purchase, other
If you’re self-employed, you’ll need to submit the previous year’s full tax return plus proof of recent income in the form of a digitally deposited check or a business invoice.
Best fast personal loans for all credit types
3.9
May fund in 1 business day
No minimum credit score requirement on lender site
Trustpilot score of 4.9/5 stars
May charge a high origination fee
Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, its also is one of few lenders that doesnt have a minimum credit score requirement (if you apply on the lenders website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.
Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.
Time to get funds
As soon as 1 to 3 business days
Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes
Learn More: Where to Get a Personal Loan
If you’re just starting out as being self-employed, then providing the commonly required two years’ worth of tax returns might be difficult.
In this case, applying for a personal loan with a cosigner could be a good option. Not all lenders allow you to apply with a cosigner, but some do.
Even if you don’t need a cosigner to qualify for a personal loan, having one could get you a lower interest rate than you’d get on your own.
Before you borrow, be sure to consider multiple lenders. This way, you can more easily find a loan with a good rate as well as favorable terms.