Can You Get a Personal Loan if You're Self-Employed?

Yes. You can get a personal loan when you're self-employed. You'll need to prove your income with tax returns, bank statements or 1099 forms instead of pay stubs, and most lenders want to see at least two years of self-employment history.

MoneyLion can help you find personal loan offers. Get matched with offers for up to $50,000 from our top providers. Compare rates, terms and fees from different lenders to choose the best offer for you!

MoneyLion

A lender prequalifies you. What's important to remember?

Funds are guaranteedFinal approval may differRates cannot changeNo review is required

63

Key Takeaways

• Can you get a personal loan if you're self-employed? Yes — you just prove income differently: Tax returns, 1099s and bank statements stand in for pay stubs.

• Most lenders want two years of self-employment history: Some accept one year if the rest of your application is strong.

• Credit and DTI carry extra weight: Aim for a 670+ FICO score and keep debt payments at or below 36% of monthly income.

• Documentation is the difference-maker: Gather two years of tax returns with Schedule C, 1099s, bank statements and a profit-and-loss statement.

• Variable income can mean a higher rate: Lenders may price in added risk when income is less predictable.

• Alternatives exist if you're declined: A secured loan, a co-signer, a home equity loan or a credit union loan may fit better.

Summary generated by AI, verified by MoneyLion editors

What Counts as Self-Employed?

The IRS considers you self-employed if you work for yourself instead of an employer. That includes:

• Sole proprietors who run an unincorporated business on their own

• Independent contractors who are paid per job or project

• Partners who share ownership in a business

• Business owners who run their own company full-time or part-time

If you get a 1099 instead of a W-2, you likely fall into one of these groups.

How Many Years of Self-Employment History Do Lenders Want?

Most lenders want to see at least two years of self-employment history before approving a personal loan. Some will accept one year if the rest of your application is strong. Be ready to hand over:

• Two years of personal tax returns, including all schedules — your IRS Form 1040 with Schedule C shows your net self-employment income

• Two years of business tax returns if your business files separately

• Recent 1099 forms from the past one to two years

• Profit and loss statements for the current year to date

The longer and steadier your income history, the better your odds.

Self-Employed vs. W-2 Employees: What Lenders Ask For

How To Get a Self-Employed Loan Step-By-Step

Self-employed borrowers meet the same credit and income standards as W-2 employees — the only real difference is how you prove your income. Instead of pay stubs and a W-2, you show tax returns, 1099s and bank statements. If your credit score, debt-to-income (DTI) ratio and income are solid, being self-employed on its own will not block you from approval.

Step 1: Gather Your Income Documents

Provide clear documentation showing stable income:

• Tax returns from the past two years

• Bank statements

• 1099 forms or invoices

• Profit and loss statements

• CPA or accountant letters

Pro tip: The more years of consistent income you can document, the easier it’ll be to qualify. 

Step 2: Check Your Credit Score

Since income may be harder to verify, lenders rely heavily on your credit profile.

• Good credit (670+ on FICO’s scale) = better rates, easier approvals

• Lower credit = fewer financing options, higher interest

Step 3: Calculate Your Debt-To-Income Ratio

Most lenders want your debt-to-income ratio (DTI) to be 36% or lower. That means your total monthly debt payments should not go past 36% of your monthly income. To calculate your DTI, divide your total monthly debt payments by your gross monthly income.

Here's an example:

• Monthly income: $5,000

• Monthly debt: $1,500

• DTI = 30%

Pro tip: If your credit score is holding you back, consider paying down revolving debt, fixing errors on your credit report or adding a co-signer.

Step 4: Decide How Much You Need To Borrow

Be clear about your loan purpose and repayment plan.

• Debt consolidation

• Medical bills or emergency expenses

• Business-related costs

Step 5: Compare Lenders

Not every lender views self-employed personal loans the same way. Here’s how the main options stack up:

Step 6: Get Preapproved

Submit a soft-pull preapproval to see your rate without hurting your credit score.

Step 7: Double-Check and Submit Your Application

Expect additional verification steps.

• Double-check documents

• Be ready for follow-up requests

• Provide updated financial records if needed

Step 8: Review and Sign Your Loan Agreement

Confirm the APR, monthly payment and total repayment amount before you sign.

Best Personal Loan Options for Self-Employed Borrowers

Finding the right loan doesn’t have to feel like guesswork. Here's a look at a few lenders:

Alternatives to Self-Employed Loans

If your application for a self-employed personal loan doesn’t go through, you still have options. Some alternatives may actually be a better fit depending on your situation:

• Secured personal loan: A personal loan backed by collateral like a car or savings account, which lowers the lender's risk and can make approval easier.

• Co-signer loan: A loan where someone with strong credit signs alongside you and agrees to pay if you cannot.

• SBA loan: A business loan partly backed by the U.S. Small Business Administration (SBA), offered through approved lenders for business use.

• Business line of credit: A revolving credit line for business expenses that lets you borrow, repay and borrow again up to a set limit.

• Home equity loan: A loan that uses the equity in your home as collateral, often at a lower rate than an unsecured personal loan.

• Credit union personal loan: A personal loan from a member-owned credit union, which may offer more flexible income rules than a big bank.

How Can I Get a Personal Loan With No Proof of Income?

If you can’t provide income documentation, consider these options to improve approval odds.

• Online lenders offering personal loans: A few online lenders may look at recent bank statements rather than W-2s. The trade-off? Interest rates and fees are often higher, since the lender takes on more risk.

• Secured personal loan: Offering collateral like a car title or certificate of deposit (CD) can improve your odds. Secured loans reduce lender risk, so approvals are more likely even without tax forms.

• Co-signer support: Adding a co-signer who has verifiable income can unlock loan approvals you wouldn’t qualify for alone. This works well if you have solid credit but lack documentation, though remember your co-signer becomes equally responsible for repayment.

• Alternative documentation: Even if you don’t have tax returns, other records like 1099 forms, invoices or steady deposits into a business bank account can sometimes satisfy lenders.

Learn More: 12 Best Personal Loans for Students: Top Options Compared

How To Strengthen Your Personal Loan Application

To improve your qualification odds, focus on key factors like improving your credit score, lowering your debt-to-income ratio and showing financial stability.

• Build your credit score: Lenders often lean heavily on credit when income documentation is thinner. Pay every bill on time, chip away at revolving balances like credit cards and avoid unnecessary hard inquiries in the months before you apply. 

• Show a longer client or contract history: A stable roster of clients or long-term contracts demonstrates that your income is less volatile than it looks on paper. For example, if you can show that you’ve worked with the same companies for years, lenders may view that as equivalent to a steady job.

• Keep personal and business debt low: A high DTI ratio makes lenders wary, especially if income is unpredictable. Paying down existing debt or keeping balances well under 30% of your available credit signals that you manage borrowing responsibly.

• Use business bank accounts for deposits: Running all payments through a dedicated account separates business and personal finances, which lenders prefer. It also creates a clear paper trail of consistent deposits, making you look more organized and financially reliable than if your income is scattered between personal accounts or cash.

Personal Loans for Self-Employed FAQs

What credit score do you need for a self-employed personal loan?

Most lenders want a FICO score of at least 670, according to myFICO. Some lenders accept scores as low as 580 but charge higher APRs.

How many years of self-employment do lenders require?

Most lenders want to see two years of self-employment income, based on Internal Revenue Service (IRS) tax return history. A few lenders accept one year if your income is strong and steady.

What documents replace pay stubs for self-employed borrowers?

You can use IRS Form 1040 with Schedule C, 1099-NEC forms, 12 to 24 months of bank statements and a profit and loss statement.

Do self-employed borrowers pay higher interest rates?

Sometimes. Lenders may add a risk premium when income is variable.

Can you get a personal loan with no proof of income?

It's harder, but sometimes yes — some lenders accept bank statements or collateral instead of tax returns, often at higher rates.

Key Terms

• Self-employed: Working for yourself — as a sole proprietor, independent contractor, partner or business owner — rather than for an employer.

• Schedule C: The IRS Form 1040 attachment that reports your net self-employment income.

• 1099 form: A tax form (like a 1099-NEC or 1099-K) showing income paid to you as a non-employee.

• Profit and loss statement: A summary of your business income and expenses, often for the current year to date.

• Debt-to-income ratio (DTI): The share of monthly income going to debt payments; lenders often want it at or below 36%.

• FICO score: A credit score from 300 to 850; most lenders want at least 670 for better rates.

• Secured loan: A loan backed by collateral like a car or savings, which can ease approval.

• Co-signer: Someone with strong credit who agrees to repay your loan if you can't.

Sources

• IRS: Self-Employed Individuals Tax Center

• CFPB: What to know before taking out a personal loan 

• CFPB: What is a debt-to-income ratio? 

• myFICO: What is a good credit score? 

Summary generated by AI, verified by MoneyLion editors

Elizabeth Constantineau, CFHC™, contributed to editing this article.

Photo credit: DGLimages / iStock.com

*Fixed rates from 6.99% APR to 35.49% APR. APR reflects the 0.25% autopay discount and a 0.25% direct deposit discount. SoFi Platform personal loans are made either by SoFi Bank, N.A. or, Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC, Equal Housing Lender. SoFi may receive compensation if you take out a loan originated by Cross River Bank. These rate ranges are current as of 11/03/25 and are subject to change without notice. Not all rates and amounts available in all states. See SoFi Personal Loan eligibility details at https://www.sofi.com/eligibility-criteria/#eligibility-personal. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, income, and other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 9.99% of your loan amount for Cross River Bank originated loans which will be deducted from any loan proceeds you receive and for SoFi Bank originated loans have an origination fee of 0%-7%, will be deducted from any loan proceeds you receive.