No doc Personal Loans

If you're self-employed, earn an irregular income or even have bad credit, you can still get a loan. Find out about your low doc personal loan options.

If you're in need of a personal loan you may feel limited by some of the eligibility requirements. Income and assets can be difficult to prove if you are self-employed or your wealth is tied up in investments. You may also have difficulty proving your worth if you have some negative marks on your credit file.

Depending on your financial situation and what you need the loan for, you may want to opt for a low doc personal loan. Take a look at the guide below on low doc personal loans to see if they are an option for you.

How do low doc personal loans work?

Low doc personal loans are sought by people who may not have the documentation required to apply for more traditional personal loans. These loans can be used by people who can't prove a regular income, such as the self-employed or those whose income comes from investments. As these loans are risky for lenders, they generally come with higher rates and fees.

What features come with these loans?

Low doc personal loans come with similar features to other personal loans, as well as flexible eligibility features which can make them an option for people who do not qualify for other forms of credit. Some of the features include:

• Standard application. As these loans require less documentation than others, the application process is usually the same as a regular personal loan.
• Fees and rates. As these loans require less proof of financial stability, lenders may charge higher fees and rates to offset the risk of lending the money.
• Variable or fixed. Depending on the loan you opt for you may be able to select a fixed or variable rate option to suit your financial needs.
• Flexible loan purposes. Low doc personal loans may allow you to borrow money to finance personal or business needs, making them a suitable option to consider for various types of loan requirements.

Weigh up the benefits and drawbacks before applying

• These personal loans are an option for people who may not be able to apply for traditional personal loans
• Less documentation is required to apply for these loans which makes for a quick and easy application process

• These loans tend to have higher rates and fees
• These loans usually offer less features and less flexibility than other personal loans

Is there anything to keep in mind?

Before you apply for a low doc personal loan, consider the following:

• Do you need the loan? The low doc features of these loans may attract borrowers for the wrong reasons. If you do not have a reliable income or stable assets to show as evidence to a lender then you may want to consider your ability to make the repayments. Decide if your financial situation is stable and if any changes could occur that may affect your ability to repay the loan.
• Have you planned your repayments? Not planning for a loan and how you're going to repay it is a common mistake, but one that can cost you if you miss any payments. Calculate your repayments and work out whether they will be manageable on your budget. This is even more important for low doc loans if you earn an irregular income or have unstable assets.
• Why are you applying? The purpose of the loan should also be considered. For instance, if you are looking at financing a car then you can consider a secured personal loan as you may be able to get a lower rate. If you want to make improvements to your home you can consider a home equity loan/line of credit.

Here's how you can apply

To apply for a low doc personal loan you can click on the "Go to Site" button for any of the lenders you see on the page above. From there you will need to provide proof of your identity and also certain financial details. Eligibility requirements differ for each loan, and you can check these by clicking on the name of the loan and reading the review page before applying. To apply, you will generally need to be over the age of 18 and be a permanent Australian resident. Lenders will differ on their requirements regarding your credit history.

Interesting facts

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