Can I get a personal loan if I'm self-employed?

Yes, here at Wisr you can be eligible for a personal loan if you’re self employed. Personal loans for self-employed applicants work in the same way as personal loans for PAYG applicants once approved. You’ll receive a fixed sum of money, then you repay it in regular instalments, plus interest, until the end of your loan term.

Want to know more about the ins and outs of personal loans? Check out our complete smart guide, what is a personal loan?

So, as we mentioned, there’s a little extra paperwork involved. Self-employed applicants need to be able supply us with:

• 3 months of electronic business transaction bank account statements (aka statements for the bank account which your business income is deposited into)

• Electronic bank statements for personal current account

• Your most recent individual tax return

• The corresponding notice of assessment from the Australian Tax Office

• A form of ID

It’s a good idea to have all these documents to hand if you’re ready to start your personal loan application. This will help you whiz through it in about 10 minutes.

Put simply, this is because if you’re self-employed, your income is more likely to fluctuate from month to month. Most people who are employed by a company tend to receive a fixed amount every week, fortnight or month. This makes it easier for a lender to predict whether they will be able to afford their loan repayments. 

If you’re self-employed however, your income may go up or down throughout the year. This makes it harder for a lender to work out whether you’ll be able to comfortably afford your personal loan repayments and if they can lend you money without causing you any financial difficulties. 
Responsible lenders will therefore ask you to provide more information about your income and often request to see your income over a longer time period. This will allow them to make a more informed assessment of your financial situation.

Pretty much anything! Although, we can’t lend to support a cash flow shortage for your business. Aside from that, you can apply for a personal loan for any ‘worthwhile’ purpose (as long as it’s legal). Being self-employed doesn’t change what you can use your loan for - that’s entirely up to you. 

That said, there are some common reasons why people take out personal loans. Here are a few examples.

• Buying a new or used vehicle 

• Consolidating their debt

• Making home improvements

• Funding a holiday or travelling

• Paying for all or part of a wedding 

• Spreading the cost of medical bills

How much you’re able to borrow really comes down to you and your financial situation. For instance, if you already have a lot of credit liabilities and a small income surplus after your financial commitments are taken care of, you won’t be able to borrow a large amount. 

On the other hand, if you have a big income surplus, you may be eligible to borrow more. At Wisr we offer unsecured personal loans up to a maximum of $62,000 and secured vehicle loans up to $147,000. 

Want to get into the finer detail? Check out our guide, how much can I borrow with a personal loan?

When it comes to your credit score, a personal loan for self-employed applicants isn’t much different. Just like with a PAYG applicant, you need to make sure that your credit score is in the strongest position possible before you apply. This will help to make sure that you can bag yourself the best rate available to you, saving you money.

Need a few credit score boosting tips? Check out our complete guide, Credit Scores 101.

Not sure where to start? Head to the Wisr App and check both your Equifax and Experian credit scores. It only takes a few minutes to fetch your scores and see where you stand. We’ll also give you lots of personalised insights into what you’re doing well and how you can improve your credit scores.

As we previously covered, self-employment doesn’t always give you a reliable monthly income. Sound familiar? Well, if this rings true for you, it can be worth doing a little extra planning to make sure you avoid any future money worries. 

Here are a few smart moves you can make to ensure you stay on top of your loan repayments.

• Align your repayment frequency with what works best for you

At Wisr, we know that no two people are the same, and neither are their finances. That’s why we’re flexible when it comes to how frequently you repay us. You can set your repayment frequency to weekly, fortnightly or monthly so you can manage your cash flow however fits in best with your business and financial situation.

• Set aside a buffer

Does your business revenue fluctuate month to month? If so, it could give you peace of mind to set aside a buffer of about three month’s worth of repayments. That way, if business drops unexpectedly, you’ll still be able to keep up with your financial commitments. 

• Take advantage of bumper months when you can

Did you know that with Wisr, you can make overpayments or repay your loan in full at no extra cost? So, if you have an exceptional month revenue-wise (go you!), you’ll have the option of putting your extra hard-earned cash towards repaying your loan. Not only will you repay your loan faster, but you’ll also save money. 

Right then, think a Wisr personal loan is right for you? The first step is to get your personalised rate estimate. This will tell you what interest rate is available to you before you go ahead and apply. And don’t worry, getting a rate estimate doesn’t affect your credit scores. 

If you like what you see, you can select one of your loan options and complete your personal loan for self-employed application. Just remember to have the documents you need to hand. 

Want to see your loan options with Wisr? Get your rate estimate in just a few minutes.