Personal loans by need

Personal Loans for Self-Employed Borrowers

How to get a personal loan when you are self-employed: what lenders look for, documents to prepare, how to show steady income, cost examples and alternatives.

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Quick answer

Self-employed borrowers can get personal loans, but lenders want proof that income is steady. Expect to show recent tax returns, 1099s, bank statements or profit-and-loss statements. Keeping business and personal accounts separate, filing on time and lowering your debt-to-income ratio all help you qualify and get a better APR.

Being your own boss does not disqualify you from a loan. It changes what you need to prove. Lenders cannot call an HR department, so your paperwork has to do the talking.

What lenders look for

  • Steady income over time. Lenders often look at one or two years of history.
  • Debt-to-income ratio. The CFPB defines DTI as monthly debt payments divided by gross monthly income. Check yours with the DTI calculator.
  • Credit history. Your free reports are at AnnualCreditReport.com.
  • A bank account where income lands regularly. See bank account loan requirements.

Documents to prepare

DocumentWhy it helps
Federal tax returns, often the last one or two yearsShows income after expenses
1099 formsConfirms client payments
Bank statements, recent monthsShows regular deposits
Profit-and-loss statementShows current-year income
Business license or websiteConfirms the business is active

Ways to strengthen your application

  • File taxes on time and keep returns handy.
  • Separate business and personal accounts so deposits are easy to read.
  • Pay down revolving balances to lower your DTI.
  • Consider a co-borrower or cosigner with steady income. See cosigner loan options.

What a loan costs

Here is what borrowing $7,500 over 48 months costs at three APRs across the 5.99% to 35.99% range offered on our network.

APRMonthly paymentTotal interestTotal repaid
5.99%$176.10about $953about $8,453
15.99%$212.51about $2,701about $10,201
35.99%$296.79about $6,746about $14,246

If a fixed-rate installment loan is the right tool, use the form on this page to see whether partner lenders may have an offer, or call (800) 236-7761. You can also compare costs first with the loan payment calculator.

Examples are illustrations, not offers. Approval, APR and terms depend on the lender, your state and your credit profile.

Frequently asked questions about personal loans for self-employed borrowers

Can I get a personal loan if I am self-employed?

Yes. Lenders mainly need to verify that your income is steady enough to make the payments. Documentation matters more than for a salaried borrower.

What documents do self-employed borrowers need?

Commonly one or two years of tax returns, recent 1099s, several months of bank statements, and sometimes a profit-and-loss statement. Requirements vary by lender.

Do lenders use my gross or net self-employment income?

Many look at income after business expenses as shown on your tax return, which can be lower than your gross receipts. Ask how the lender calculates it.

Should I use a personal loan for business expenses?

Some lenders allow it and some do not. Ask first. A business loan or line of credit may fit ongoing business needs better.

Sources

  1. CFPB: What is a debt-to-income ratio? (accessed 2026-10-09)
  2. CFPB: What is the difference between a loan interest rate and the APR? (accessed 2026-10-09)
  3. CFPB: How do I get a free copy of my credit reports? (accessed 2026-10-09)

Last updated 2026-10-09. How we research and update pages.

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