How To Get Loans For Self Employed With No Proof of Income

Some people wonder if it is possible to get a loan if they are self-employed. Fortunately, it is possible to get loans for self-employed even if you do not have proof of income. However, the process and documentation is a bit complex compared to that of a person with proof of income. Even if you find yourself in the second category, worry not as it is possible get a loan from lenders. All you need to understand is the criteria to use to get approved for a loan if you do not have proof of income.

If you want to know more about getting a loan without proof of income, you have come to the right place. Therefore, without much ado, let us get right into it.

Understanding No Proof of Income Loans

So what is ‘no proof of income loans’ exactly? In simple terms, no proof of income loans mean that you are not formerly employed and so you get your income from self-employment. As such, you do not have documents like W-2 forms to show your regular income in terms of a salary. The good news is that you can still qualify for a self-improvement loan with no proof of income.

What Is Proof of Income Loans All About?

It is natural for lenders to make sure that they will get their cash back once they lend it out. As such, they will require anybody borrowing cash to prove that they have the ability to pay back the loan. One way that lenders check a borrower’s ability to pay back a loan is by requesting proof of income. These proofs of income are official documents which show that you earn a regular income in terms of a salary and how much you earn. Some of these documents include pay stubs, W-2 forms, Tax returns and Payroll verification.

People who are employed have an easier time to provide this proof of income documents. The case is not quite the same for self-employed individuals. The reason is that for these people, they cannot prove to the lender that they will be earning the same amount from their businesses in the duration of the loan.

In order for the lender to secure their money more, they usually ask for more documentation from a person who is self-employed.

The lender will want to see the income history of your business and will therefore ask for at least two years’ tax return documents. They will also ask for the bank statements to evaluate your business’s ability to pay back the loan.

However, at times, you might need a loan for self-improvements but you have not been in business for the last two years. So what should you do in such a case? Well, the good news is that there are other options of acquiring a loan with no proof of income.

Loans for Self-Improvement with No Proof of Income

Ways To Get a Personal Loans For Self Employed With No Proof of Income

The main purpose of proof of income is to show that you can repay the loan. However, if you do not have proof of income, you need other ways to show that you are credit worth. These other ways include:


One of the ways to get a loan when you do not have proof of income is by offering collateral. Collateral is a property which you give to the bank as security just in case you fail to pay your loan. As a result, when you offer collateral, your loan becomes a secured loan. Some of the collateral that you can offer includes:

• High- value goods
• Real estate
• Investment products
• Cars

You should however note that the amount of cash your lender gives you is a percentage of the value of your collateral. Additionally, should you fail to pay your loan; the lender has the right to sell off your collateral to recoup their cash.

Finding A Cosigner

The main aim of any lender is to recover their funds. As such, they are open to the option of using a cosigner if you do not have collateral or your credit score is not very good. The cosigner though must have a very good credit score or a reliable source of income.

When a person agrees to be your cosigner, it means that they are as responsible for the loan as you are. Therefore, if you fail to pay the loan, the cosigner takes the responsibility of paying the loan.

Additionally, if you default on payments or you are late at paying the loans, then your cosigner’s credit score is negatively affected. The negative effect will make it difficult for the cosigner to access a loan in the future.

Good Credit History

If you do not want to involve a cosigner, you should have an excellent credit score to show that you indeed repay your loans. You should have an excellent credit score of 750 to 850. If you cannot achieve these high scores, then you should at least have a credit score of 700 to 749 which is a good credit score.

Your credit score shows how well you honor your financial obligations especially loans. Below are some of the issues that can negatively affect your credit history thus bringing your credit score down?

• Missing or making loan payments late
• Fillings of bankruptcy
• Foreclosures on your house
• Having high credit card balances

In the event that you have a very low credit score, it is prudent to first of all improve on the same before you attempt to get a loan based on your credit history.

You can rectify the negative credit history by paying your credit card balances; repay any outstanding loans and any other financial obligations that might be negatively affecting your credit score. Once you improve your credit score, you can approach a lender for a loan without proof of income.

Mortgaging Your House to Get a Loans for Self Employed With No Proof of Income

Another way that you can get a loan for self-improvement is by mortgaging your house. Before, in order to qualify for a stated income loan, you did not need to show any documentation of your income or to verify how much you earned. All you needed to do is state your income and the banks would lend you the loan. However, the terms of the stated income loan were changed and nowadays you have to provide documents that show your income.

Following the changes to the stated income loans, now the borrowers have to provide documentation which shows that they have the ability to repay the loan. The good news though is that if you are self-employed, then you do not need to provide income documentation or tax returns.

To qualify for this type of loan as a self-employed person, your credit score needs to be good, have a sizable number of reserves and also provide a large percentage in terms of a down payment. The better your financial wellbeing, the easier it is for you to receive a loan from the banks.

Below are the requirements for getting a stated income loan when you are self-employed:

• You should have high savings
• You should have a good credit score of over 700
• Provide bank statements
• Your business should have a high level of income

More On Personal Loans For Self Employed With No Income Proof

As we have already stated, it is possible for you as a self-employed individual to get a personal loan even without proof of income. If you run a business, then the banks will need you to provide some documentation showing how much the business earns and if you are able to pay back the loan that the bank will extend.

Below is a list of the best platforms through which you can get loans as a self-employed individual who do not have a proof of income. More good news is that these platforms are also willing to extend the loan even if you have a low credit score.

The first financial institution that you should consider for receiving a personal loan for self-improvement is The platform extends loans from $500 to $10,000. The good news is that your credit score will not be a hindrance to receiving a loan as the institution accepts individuals even with a low credit score.

The repayment period of the loans ranges from 90 days to six years depending on the loan amount. Additionally, you do not have to wait long before you get a decision on your loan application.

One of the requirements of getting a loan from the bank is that you must have a checking account where the cash will be deposited. You must be 18 years and above to qualify for the loan and also be a US citizen or a permanent resident. Additionally, you must have some earnings of $1000 a month. This last requirement might be a hindrance to some self-employed individuals but there is a solution. If you have bank deposits equaling this amount you can qualify for the loan.


• Loan amounts ranges from $500 to $10,000
• Gives loans even to people with a poor credit score
• Very fast in making a discoing about your loan application
• Money is deposited directly into your checking account

Credit Loan

The second option that you have for getting a loan for self-improvement with no proof of income is Credit Loan. The platform gives you a loan from $250 to $5000. The other great feature is that the Credit Loan will accept you even if you have a bad credit score. Another amazing feature of the platform is that it does not need you to provide income documentation to show your ability to repay the loan.
Once your loan application is accepted, you can receive your loan is as less as 24 hours. However, you must have a checking account where the money will be deposited.


• You receive loans from $250 to $5000
• You receive the cash directly into your current account
• The cash reflects in one business day
• You receive the funds even of you have dad credit

Bad Credit Loans

Another option that you can use when you need a personal loan with no proof of income is The organization has been in operation since 1998 and has in the course of that duration helped very many people acquire loans. You can get loans from as low as $500 to a maximum loan amount of $5,000. The application process is also quite easy and straightforward.

You can repay the loan from 3 to 60 months depending on the loan amount. You receive the cash into your checking account as soon as the following day after the loan application. However, to qualify for a loan, you must be a US citizen or a permanent resident. You must also be 18 years and above. also requires you to have a valid email address or a phone number.


• You can get loans from $500 to $5,000
• The company has been in operation since 1998
• The loan application process is very easy
• You receive your money the very next business day

Another great option that you can get a personal loan through is The platform enables you to access a loan even if you have low credit score. links you with lenders who will extend loans at a relatively fair interest rate.

The good thing with this platform is that the interest rate is dependent on your credit score. This means that if you have a high credit score, you will most likely pay a low interest rate. The repayment duration ranges from 3 months to 6 months depending on the amount of loan you receive.

To qualify for the loans though, you must prove that you have a regular source of income. The good news is that you can use bank statements to show how much your business makes in a month.


• The platform extends loans from $500 to $5,000
• Low credit scores also receive loans
• Has a large network of lenders?
• It is operational all over the country
• Very fast loan application process

Other Options For Getting Loans of Self Employed With No Proof of Income

The good news is that it is possible to access a loan in more than one way. You can also focus on some of the alternative ways highlighted below.

Peer-to-Peer Lending

One of the ways which is gaining popularity nowadays is peer to peer lending. With this method, you fill an application and you get a lender who is willing to lend you the loan. What you should realize with this method is that most lenders base their interest rates on your credit score.

Credit Unions

Another great alternative to get loans for self-improvement with no proof of income Is through credit unions. It is possible to borrow money from your credit union if you are a member.

Online Lenders

Another great alternative that you have for borrowing a loan is through online lenders. Below are a few of them that you can check out.

Upgrade : The online lender offers loans of up to $50, 000. The loans are not only unsecured but you get to pay them in installments over a specified duration. You can use the cash for home improvement, major purchases and any other needs that you might have. If you are self-employed, then you will have to provide the last 40 days’ bank statements, the past two year’s full tax returns which must include Schedule and finally tax transcripts which you can get from the IRS.

SoFi : Another great option when it comes to getting a loan either for home improvement, medical emergencies and procedures, and relocations is SoFi. The platform gives a loan of up to $100,000 which is repayable in installments.

In order to qualify for the loan as a self-employed individual, SoFi will check your education level, your credit score and your financial history. The company also compares your monthly expenses with your monthly income to decide whether they will extend the loan. Having a cosigner can greatly improve your chances of qualifying for a loan.

Factors to Consider When Applying Loans For Self Employed With No Proof of Income

Interest Rates

Different banks and financial lenders will have different interest rates. Some of the lenders base their interest rate on your credit score. Therefore, the higher your credit score, the lower the interest on your loan. It is therefore prudent to compare the interest rates of different lenders so as to get the best deal possible.

Monthly Installment Payments

Different lenders and banks have different monthly repayment installments. Therefore, it is important to check the monthly installments of your lender. If the repayment period is short, then the repayment installments are bound to be high. It is therefore important to choose a repayment period that will allow you to pay in installments that you can manage.

Turn Around Time

Another important factor that you should consider is the loan’s turnaround time. If you have a medical emergency, you want to receive your cash as soon as possible. It is therefore extremely important to consider the time it takes for the lender to process your loan request. Some banks and financial institutions have a very fast turnaround time and you can receive your cash the very following day after your loan application request has been approved.

Processing Fee

The processing fee is one time fee that you pay the bank so that they can offer you the loan. Different banks charge a different processing fee. Usually, the lenders charge fee of 1.5% to 2% of the loan amount. Therefore, as you consider other factors, it is wise to consider this expense because you want to pay the lowest processing fee.

Repayment Period

Different banks offer different repayment periods. Some of the lenders will give you as little as 3 months to repay the loan while some might give you as many as 60 or more months to repay the loan. It is therefore important to check the repayment duration of a loan. It Is however important to note that with any loan, the longer the repayment period, the more expensive the loan becomes.

FAQ – Frequently Asked Questions

Is it possible to get a loan with no proof of income?

Yes, it is possible to get a loan even when you do not have proof of incomes. However, to qualify for the loan you must have a good credit score, and also your business must have been generating steady income. The good news is that most lenders either look for the good credit score requirement or a well performing business requirement before they extend the loan.

How much cash can you qualify for if you are self-employed?

The amount of cash that you qualify for when you are self-employed depends on your ability to repay the loan. In other terms, how much are you able to comfortably pay. Many lenders will look at the ability of your business to pay back the loan before they decide on the amount to give you.

Is it possible to get a loan to buy a car if you have no proof of income?

Yes, it is possible to get a loan to finance a car purchase even when you do not have purchase of proof. Some lenders specialize in offering car loans. However, you must realize that they usually charge higher interest rate.

What are no income loans?

As the name suggests, no proof of income loans are loans which self-employed individuals receive from banks or other lenders. They are so called because self-employed individuals do not have documentations from their employees to show how much they earn.

Final Thought

Loans for self-improvement with no proof of income seem like impossibility. However, that is not necessarily the case as self-employed individuals can qualify for loans. There are banks and other financial institutions which are willing to extend loans to self-employed individuals. However, before you qualify for the loans, you must either have very high credit score or your business has the ability to repay the loan. However, there are other entities that connect you to lenders who extend personal loans. These lenders are not as strict on the credit score.

We believe that out are now knowledgeable on the requirements for getting loans for self-improvement with no proof of income.