Low Doc Personal Loans for Self Employed (Rates & Lenders)

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What type of personal loan can you get if you’re self-employed?

One of the most common mistakes among people looking for a personal loan is focusing only on the interest rate first. A better question to ask initially is, ‘which kind of loan can I actually get?’

If you’re self-employed or have an irregular income, the answer may be a low doc personal loan, and NOT a standard personal loan.

In this guide, we’ll explain how low doc personal loans work and who they’re designed for. Then, we’ll explore the fundamentals that you’ll need as well as how to find the best deal.

But first, let’s compare the interest rates you can expect to pay on a low doc personal loan in Australia.

What are low doc personal loans?

A low doc or ‘low documentation’ personal loan is a type of loan designed for borrowers who don’t meet the standard eligibility criteria for applying for credit with a lender.

With a standard personal loan, the lender will ask for financial documents, including payslips, bank statements and recent tax returns.

Low doc personal loan applications don’t require these documents. Instead, the lender assesses your eligibility in other ways, such as based on whether you have any assets for a secured low doc loan (i.e. a home or car). They’ll also review your credit history.

This makes low doc loans popular with self-employed workers, new business owners and seasonal employees.

Interest rate	6.75% p.a. to 30.00% p.a.
Loan amount	$2,000 to $50,000
Establishment fees	$400 to $500 (depending on loan size, secured loan, unsecured loan)
Monthly fee	$0 to $15
Loan terms	1 - 7 years
Early exit fees	$0 to $500
Repayment cycle	Weekly, fortnightly, monthly

What can you get a low doc personal loan for?

Like standard personal loans, you usually have flexibility to use a self-employed personal loan for more or less any purpose. According to Money.com.au research, debt consolidation and financing a home renovation were the most common reasons borrowers requested a low doc personal loan in 2023.

If you’re looking for car finance, you could consider a low doc car loan. Or, if the loan is for a business purpose, there are low doc business loans.

Qualifying for a low doc personal loan can be quite simple. The basic eligibility for low-doc applications requires you to be over the age of 18 and an Australian citizen or permanent resident.

Then, you’ll need to demonstrate that you can afford the repayments, which can be done by providing:

Two years of tax returns and/or notices of tax assessment from the Australian Taxation Office (ATO) if you have them.

Company information if you are a business owner. That includes your ABN and business address (with some lenders you must have held the ABN for a minimum of one or two years).

Any recent financial statements that show your business’s profits and losses.

Proof of any other income you have — i.e. rental property or investment income.

Recent bank statements for both your personal and business accounts.

The more documentation you can provide to prove you can comfortably afford to repay the personal loan, the more likely you’ll get approved.

You may also secure a better interest rate. Having a good credit score will also be an advantage.

Low doc personal loan providers in Australia

ANZ

Bankwest

Bank of Melbourne

BankSA

BCU

Citi

CommBank

Gateway Bank

IMB

Latitude Financial

Liberty

MoneyMe

NAB

Our Money Market

Pepper Money

Plenti

RACQ

RACV

SocietyOne

St. George

Westpac

Sunshine Loans

Nimble

Low doc personal loans & increased risk

Low doc personal loans offer an option to borrowers who otherwise mightn’t be able to get a loan. But something to keep in mind is that they are generally a bigger risk for the lender, because the borrower isn’t providing the standard proof of their ability to repay the loan.

This means they often have:

Higher interest rates

Higher fees

Lower borrowing amounts

For example, data from Money.com.au in 2023 shows that the average personal loan interest rate borrowers who are casually employed, without a long-term stable income, is 16.15% p.a. This is in contrast to an average of 13.83% p.a. for borrowers who are employed full-time.

Lenders like to minimise risk and uncertainty wherever they can. If you can remove some of the risk for them, you could get a lower interest rate on your low doc personal loan. Here are some options self-employed borrowers can consider:

1

If you own an asset (a car, house, shares) the lender may accept this as security for the loan.

2

You can provide a personal guarantee (a written declaration) to the lender about your ability to repay the loan.

3

Do a free credit score check and if you need to, take steps to improve your score before applying.

4

You can ask someone you trust to act as a guarantor for the loan.

5

If you can afford the higher repayments, agree to a shorter loan term so you’re paying off the loan sooner. Be sure to calculate what your personal loan repayments will be over different loan terms.

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FAQs about low doc personal loans

Who offers low doc personal loans in Australia?

Most lenders offer a personal loan for self-employed low doc borrowers. This includes the major banks, credit unions, online lenders and specialist lenders. However, to be eligible for a low doc loan with a traditional lender, like a bank or credit union, you’ll generally need to have a good credit score.

If you’re struggling to find a suitable lender, a personal loan broker may be able to help you find one.

Are low doc loans easy to get?

The process of applying for a low doc loan is generally straightforward and similar to that of applying for a standard personal loan. Each lender’s application process may differ slightly but are more often than not approved quickly online, so long as you fulfil the lender’s criteria.

What is the limit on a low doc personal loan?

You should be able to apply for a low doc personal loan between $2,000 and $50,000, but a few lenders offer as much as $80,000. It will ultimately depend on your personal circumstances and how strong your application is (credit score, proof you can repay the loan, etc.), as well as the lender’s maximum loan amount.

Can I get a low doc personal loan with no bank statements?

Lenders generally ask to see bank statements to verify your expenses and that you're able to afford the loan. But it can be possible to get a low doc loan without bank statements provided you can demonstrate to the lender overall that you are eligible.

Make sure do thorough checks on the vehicle if you're getting a loan to buy through a private sale.

Can I get a low doc personal loan if I have bad credit?

You may be able to get a low doc personal loan if you have bad credit. But you might have a better chance of being approved through a specialist bad credit personal loan provider.

Can I get a low doc personal loan if I’m self-employed?

Yes. Low doc loans are sometimes called self-employed loans. To be approved, you will still need to provide a minimum level of documentation, which might include recent tax returns and personal ID.

Is it possible to get an unsecured low-doc personal loan?

Yes, it may be possible to get an unsecured personal loan as a low-doc borrower. But if you can provide security on the loan, it may be easier to get approved and find a better deal. Our analysis of lenders on our database shows that secured personal loans generally have lower interest rates and better terms, too.

Do low-doc personal loans have higher interest rates?

Generally, low doc personal loans have higher interest rates than standard personal loans. Lenders charge higher rates to cover the increased risk of default.

Are there no doc personal loans in Australia?

It’s generally pretty rare for lenders to offer no doc personal loans in Australia. When assessing your personal loan application, most lenders will want at least some information about who you are, your business and how you will be able to afford the loan.

Important Disclosures

^Comparison rate warning

Unless otherwise stated, personal loan comparison rates are calculated based on a loan amount of $30,000 repaid over a 5-year term. The comparison rates only apply to the examples given. Different loan amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan. Check with the provider for full loan details, including rates, fees, eligibility and terms and conditions to make sure the product is right for you.

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For offers from Money.com.au lending partners, we will match you with lenders and rates based on the information you provide us. This won't affect your credit score. Some lenders displayed are not current Money.com.au partners and we can't guarantee rates from a specific lender.

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General information only The information on this page is general in nature and has been prepared without considering your objectives, financial situation or needs. You should consider whether the information provided and the nature of any personal loan product is suitable for you and seek independent financial advice if necessary.

We are not providing you with a recommendation or suggestion about a particular personal loan. You should read the relevant disclosure statements or other offer documents before deciding whether to apply for or continue to use a particular product.

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Low doc personal loans for self-employed Australians

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