Being self-employed doesn't disqualify you from getting a personal loan — but it does require more documentation than a W-2 employee. Lenders want to verify that your income is stable and sufficient to cover loan repayments, which means they'll typically ask for 2 years of tax returns and bank statements.

The biggest challenge for self-employed borrowers is that lenders use net income (after business deductions) rather than gross revenue. If you write off significant business expenses, your qualifying income may be lower than your actual earnings.

Best Lenders for Self-Employed Borrowers

LenderMin. Credit ScoreIncome VerificationMax LoanBest For
SoFi680Tax returns + bank statements$100,000High-income self-employed
UpstartNo minimumAI underwriting + bank statements$75,000New self-employed, variable income
LendingClub600Tax returns + bank statements$40,000Fair credit self-employed
Marcus660Tax returns + bank statements$40,000Good credit, no-fee preference
Avant580Bank statements$35,000Lower credit self-employed

How to Maximize Your Approval Chances

  1. File taxes on time — Lenders require 2 years of tax returns. Late or unfiled returns are a red flag.
  2. Separate business and personal finances — Commingled accounts make income verification harder.
  3. Reduce deductions strategically — Higher net income on your tax return means more qualifying income for loans.
  4. Build a strong credit score — A 700+ score significantly expands your lender options and lowers your rate.
  5. Pre-qualify with multiple lenders — Soft pull pre-qualification lets you compare rates without affecting your score.

Frequently Asked Questions

Can self-employed people get personal loans? +
Yes. Many lenders offer personal loans to self-employed borrowers. You'll typically need to provide 2 years of tax returns, bank statements, and sometimes a profit and loss statement.
What income do lenders use for self-employed borrowers? +
Lenders typically use net self-employment income — your gross revenue minus business expenses as reported on Schedule C. This can be significantly lower than your gross revenue.
Do self-employed borrowers pay higher interest rates? +
Not necessarily. Your interest rate is primarily determined by your credit score and debt-to-income ratio. Self-employed borrowers with strong credit can qualify for the same rates as W-2 employees.
How many years of self-employment income do I need? +
Most lenders require 2 years of self-employment history. Some lenders may accept 1 year if you have strong income and credit, but this is less common.
What is the best personal loan for self-employed borrowers? +
SoFi is often the best choice for high-income self-employed borrowers due to its high loan limits and no-fee structure. Upstart is a strong option for those with variable income or shorter self-employment history.

Related Guides

Best Personal Loans 2026 → Personal Loan Requirements → Debt-to-Income Calculator → Personal Loan Calculator → SoFi Personal Loan Review →

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Sources & Methodology: WiseIQ's editorial team researches and fact-checks all content using primary sources including the Consumer Financial Protection Bureau (CFPB), Federal Reserve G.19 Consumer Credit Report, myFICO Credit Education, and lender websites for current rates and terms. Last reviewed: April 2026. How we rank products.