Loans for Gig Workers: How to Get a Loan When You Don’t Have a Fixed Income - Jt.Org (2023)

Loans for Gig Workers: How to Get a Loan When You Don’t Have a Fixed Income - Jt.Org (1)

Carrying out your business is a proud thing to do since all the income generated goes to your account, and there are no pressures of getting to work on a scheduled time or following some set rules. But the disadvantage comes from loan acquisition.

As a gig worker, you may find it difficult to obtain a personal loan from a traditional lender. This is because most personal loans are based on your ability to repay the loan, and gig workers typically don’t have a fixed income. However, there are some lenders who offer personal loan for self-employed individuals. When applying for a personal loan as a gig worker, you’ll need to provide evidence of your income, such as tax returns or bank statements. You may also need to provide a business plan or proof of employment.

While it may be more difficult to obtain a personal loan as a gig worker, it’s still possible to get the financing you need. Keep on reading to know more.

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Why Is It Hard For Self Employees to Get Loans Than Employed Individuals?

Most loans require proof of stable income, which can easily be shown from the employment pay stub. But what if you are self-employed? Self-employed individuals include gig workers and freelancers. That means you have a variable income making it hard for the lender to figure out your exact amount.

You’ll still need a loan sometimes, even if you are self-employed due to financial hardships. One report on the economic well-being of the US households in 2019, featuring supplemental from April 2020, found that only three-quarters of US adults were ‘doing okay’ (39%) or ‘living comfortably’ (36%). The rest of the adult population were either ‘just getting by’ (18%) or even ‘finding it difficult to get by’ (6%).

A recent study found that nearly 30% of American adults have done some form of gig work in the past year. This includes activities such as TaskRabbit, driving for Uber, or renting out a room on Airbnb. The study also found that gig work is not just limited to young adults – nearly 40% of those aged 45-54 have participated in gig work in the past year. With the rise of the sharing economy, it appears that more and more adults are participating in gig work. This trend is likely to continue in the future as adults look for ways to earn extra income.

Loans for Gig Workers: How to Get a Loan When You Don’t Have a Fixed Income - Jt.Org (2)

Once in a while, you’ll find yourself in a ‘just getting by’ or ‘finding it hard to get by’ situation where you’ll need a loan. What will you do in this case?

How to get a loan if you are a gig worker or self-employed?

Create a Budget

Wait, how does a budget relate to getting a loan? The truth is that there is a close relationship between the two variables. When you create a budget, you’ll figure out the total amount you normally get per month and annually.

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You will also know the amount to save and use in your expenses. Expenses include your taxes and other government expenses you need to pay. After figuring out these expenses, you can now know the real amount you earn, which will be used during the loan application.

Get a Tax Transcript

This is a record from the IRS that shows your past tax returns. You can request to get it from the IRS website through your mail or get it online. This document will be helpful when you are applying for a loan.

The lenders will know how much tax you are paying, making it easier to know how much income you get after tax. The taxes to be paid can include the social security tax, which comprises 12.9% of your self-employed income, and Medicare tax which comprise 2.99% of the income.

There are various tax transcripts you can request, which include:

  • Tax Return Transcripts

This document shows most of the taxes that you originally filed, including Form 1040, 1040A, and 1040EZ. No changes will be recorded in this document when you file your returns.

  • Tax Account Transcripts

This is where the changes made when you file your returns are recorded. The document also shows information like your gross income, taxable income, and personal info like marital status and age.

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  • Record of Account Transcript

This document combines the information provided in the Tax Account Transcript and Tax Return Transcript. It is much better and more convenient to request this file instead of requesting two separate files.

If you find it difficult to calculate the taxes, you can decide to get professional help. This will make it easier to get whatever loan you are applying for, including a loan for gig workers or a loan for the self-employed.

Use Your Good Credit Score

If you have been applying for a loan before when you were employed and managed to create a good credit score of 750 and above, it can simplify the process of getting a loan. This is because the score proves to the lender that you have a very good history of credit payments, and hence your loan can be approved. If you need this option to be successful, make sure you have acquired your bank statements and tax return transcripts, as mentioned above.

Secure the Loan Acquiring a Personal Loan for Self-Employed Individuals

It will be much easier to get loans for freelancers or loans for gig workers if you secure the loan with collateral. This will reduce the financial risks that can occur in case of default, increasing your chances of getting approved.

You can secure the loans with anything valuable, including jewelry, your car, your house, your business enterprise, or savings in the deposit account.

Use Your Former Lender

Do you have any lenders that you have been borrowing loans from in the past when you were employed? Why not use them? The records mean the lenders have built trust in you and are sure that you’ll repay the loan even if you are self-employed.


This option will, of course, be effective if you have a history of paying the loans on time.

Options to Take If You Have a Bad Credit

Using the above options won’t work if your credit score is poor. So, how will you get loans for freelancers if you have bad credit? Well, you can try the below options.

Get a Cosigner

A cosigner is someone who will be responsible for your loan payment in case you default. The cosigner should have a good history of credit payments hence a good credit score. The higher the score, the more the terms get better.

Of course, getting a cosigner will be difficult but not impossible if you have someone that truly trusts you.

Use Your Credit Cards

Credit cards are useful for making purchases. If the loan you need is to buy a piece of equipment or for bulk buying, it will be a good option to use the cards. You can also apply for the cash advance option if you need cash instead.

Get the Pawnshop Loans

Do you need loans for no job? This is the best option for that scenario as you don’t need proof of income to get the pawnshop or payday loan. You’ll, however, need to secure the loan with a valuable item. The interests accrued in this loan are pretty high. It’s advisable to be cautious with them.



Being self-employed doesn’t mean you can’t acquire credit. Just use the above option to get the financial help that you need.


Can gig workers get a personal loan? ›

One of the many benefits of gig worker loans is that some of them won't care about your credit score and history. You can still qualify for a personal loan if you have an average score and less-than-perfect history. You also have multiple short-term loan options to help you get the quick cash you need.

Can you get a loan without a source of income? ›

For an unsecured loan, your income doesn't necessarily have to come from a job. Your income can be from many different sources. For a secured loan, you can even qualify with no income at all. But if you have no income, you will need assets that you can use as collateral.

How can I borrow money if I don't have a job? ›

How to Get a Loan Without a Job
  1. Find an alternative source of income. ...
  2. Get a cosigner. ...
  3. Provide collateral. ...
  4. Lower your debt-to-income ratio. ...
  5. Increase your credit score. ...
  6. Use a home equity loan/HELOC. ...
  7. Borrow from a friend/relative. ...
  8. Take out an auto title loan or pawnshop loan.
Feb 9, 2023

How to get a loan without enough income? ›

You may be able to get a personal loan with a low income from a lender that has a low, or no, minimum income requirement. Having a cosigner, good credit and low monthly bills could help your chances of getting approved or snagging a low interest rate.

What apps let you borrow money instantly? ›

Here are six apps that let you borrow against future earnings and some less expensive options to consider.
  • EarnIn: Best for low fees. ...
  • Dave: Best for repayment flexibility. ...
  • Brigit: Best for budgeting tools. ...
  • Empower: Best for fast cash. ...
  • Chime: Best for overdraft protection. ...
  • MoneyLion: Best for existing customers.
Nov 7, 2022

How do self-employed people borrow money? ›

Banks, online lenders and the U.S. Small Business Administration have loan options for the self-employed, and business credit cards can help cover smaller, everyday business expenses. For entrepreneurs who don't qualify for business loans, personal loans may be a good alternative, too.

What loan does not verify income? ›

Stated-income mortgages don't use a W-2, 1099, bank statement or other source to verify the applicant's income. SISA. Stated-income, stated-asset (SISA) loans are made without verification of a borrower's income or assets.

Which type of loan does not need income proof? ›

Though a personal loan can be received without income proof and a CIBIL score, having both will make the loan approval process easier for you. As you cannot afford to pay highly high-interest rates, you need to ensure that you have a good working relationship with your lenders.

Can I get instant personal loan without any income proof? ›

No, without income proof you cannot avail personal loans. You will need to provide bank statements as proof of your income. Can Self-Employed Applicants With Poor Credit Scores Get Personal Loans?

What is a hardship loan? ›

A hardship loan doesn't have an official definition, but many personal finance institutions may offer their own version of hardship loans. At its core, a hardship loan is a loan that can help you get through unexpected financial challenges like unemployment, medical bills, or caregiving responsibilities.

Can I borrow money from the bank if I am unemployed? ›

Being unemployed won't disqualify you from taking out a loan. However, you need to be aware you will most likely face higher interest rates which make getting a loan very costly. You should be confident that you'll be able to pay back the loan, because failure to do so can see you spiralling into deeper debt.

Which loan is easiest to qualify for? ›

The easiest loans to get approved for would probably be payday loans, car title loans, pawnshop loans, and personal installment loans. These are all short-term cash solutions for bad credit borrowers.

What is the easiest loan to get right now? ›

The easiest loans to get approved for are payday loans, car title loans, pawnshop loans and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they're available to people with bad credit.

How to get a personal loan with bad credit and no income? ›

If you have poor credit history or no income, a co-signer with good to excellent credit (at least 670 and solid income) can help you qualify for a loan. Before you get someone to co-sign for you, make sure you can repay the debt. Failing to repay the loan can damage both you and your co-signer's credit score.

Which company can borrow me money instantly? ›

Specta is an online lending platform that gives you loans of up to 5 Million in one transaction all within 5 minutes! No collateral, no paperwork and no visit to any office. With Specta, you can take care of urgent personal and business needs anywhere, anytime.

What app gives you $250? ›

Empower will float you up to $250 when you need it most. Instant delivery available. No interest, no late fees, no credit checks. Just pay us back when you get your next paycheck.

How can I borrow $200 from cash App? ›

How To Use Cash App Borrow
  1. Open the app and sign in.
  2. Click on your account balance.
  3. Click on 'Borrow'
  4. Tap on 'Unlock'
  5. Choose your repayment option.
  6. Agree and accept.

Can I still get a PPP loan for self-employed? ›

PPP loans are only intended to cover the compensation of employees earning less than $100,000 annually. Because the self-employed are eligible for the program due to their status as employees of their own business, the $100,000 cap also applies to them.

What types of loans are available for self-employed? ›

  • All Loans.
  • Personal Loan. Apply OnlineCheck Offer. Overview. ...
  • Insta Personal Loan. Check OfferPre-approved Offer. Overview. ...
  • Business Loan. Apply OnlinePre-approved Offer. Unsecured. ...
  • Gold Loan. Apply Online. New Loan. ...
  • Loans for Doctors. Apply OnlinePre-approved Offer. ...
  • Apply Online. Overview. ...
  • Loans for CAs. Apply OnlinePre-approved Offer.

Is it hard to get a loan if self-employed? ›

A common requirement when applying for a personal loan is proof of steady income. This could be a challenge if you're self-employed, especially if your income is irregular or difficult to prove.

How can I get money right now? ›

Once those subside, you'll find there are ways to get your hands on quick cash, without falling prey to scams.
  1. Sell spare electronics. ...
  2. Sell your gift cards. ...
  3. Pawn something. ...
  4. Work today for fast cash today. ...
  5. Seek community loans and assistance. ...
  6. Ask for forbearance on bills. ...
  7. Request a payroll advance.
Dec 14, 2022

How to get loan without verification? ›

How to get a Personal Loan without documents
  1. 1) Choose a financial institution that you maintain a relationship with. ...
  2. 2) Maintain a high credit score. ...
  3. 3) Choose a lender that offers the instant approval feature. ...
  4. 4) Avail of a pre-approved offer.

Which type of loan has no government regulations? ›

A conventional loan is a mortgage that is not backed by a government agency. Conventional loans are originated and serviced by private mortgage lenders, such as banks, credit unions, and other financial institutions.

What loans don t require documentation? ›

Common types of no-doc financing options include short-term business loans, merchant cash advances, invoice financing and lines of credit. Borrowers may be able to get funding more quickly with no-doc loans, but the repayment terms or interest rates on those loans may be less favorable than traditional business loans.

How to get instant personal loan without documents? ›

Individuals who want to get personal loans instantly without documents should first approach banks/NBFCs from which they are availing banking/lending facilities. This is because such lenders already have your personal details and hence, may not require additional documentation.

Can you get a personal loan with a credit score of 500? ›

You can get a personal loan with a 500 credit score if you have a steady source of income! A lender may extend a loan offer if you can provide proof of your ability to make monthly payments on time. Credit scores are typically one of the main qualifying factors for loans.

Does the government have a hardship loan? ›

FEEA offers eligible federal employees confidential, no-interest loans to help them bridge their financial gaps in times of emergency. FEEA has given over 13,000 no-fee, no-interest loans since 1986, to help feds make ends meet during personal tragedies like illness, death of a loved one, or a house fire.

Why won't anyone give me a loan? ›

The most common reasons for rejection include a low credit score or bad credit history, a high debt-to-income ratio, unstable employment history, too low of income for the desired loan amount, or missing important information or paperwork within your application.

What is the minimum credit score for a loan? ›

Typically, the higher your CIBIL score, the better. However, the minimum CIBIL score for quick unsecured personal loan approval is 750.

What loans can a person with bad credit get? ›

Loans for people with bad credit
  • Payday loans. Payday lenders typically don't look at your credit when deciding if you're eligible for a loan. ...
  • Car title loans. Car title loans are also short-term loans that may be an option for people with bad credit. ...
  • Personal loans. ...
  • Peer-to-peer lending. ...
  • Payday alternative loans.
Oct 19, 2022

What are easy loans with low credit score? ›

The easiest loans to get approved for with bad credit are secured, co-signed and joint loans because you can use collateral or another person's creditworthiness to make up for your bad credit score. Payday loans, pawnshop loans and car title loans also are easy to get, but they're extremely expensive.

How to get a loan with no credit and no cosigner? ›

Adam McCann, Financial Writer
  1. How to get a personal loan with no credit and no cosigner:
  2. Get a secured personal loan. Your credit, or lack thereof, doesn't matter as much when you put up collateral to secure a loan. ...
  3. Take out a credit-builder loan. ...
  4. Use your home equity. ...
  5. Borrow from someone you know.
Oct 28, 2019

Where to get $5,000 instant loan? ›

The quickest way to get a quick loan of 5,000 KSH in Kenya is by using the top 5 popular loan apps. These are Zenka loan app, tala app, Branch, Timiza by ABSA and okash. We have also added extra apps that get you quick cash loans to mpesa.

How to get a $1,500 loan fast? ›

Best Ways to Make 1500 Dollars Fast
  1. Rent Out Space.
  2. Food Delivery Gigs.
  3. Odd Jobs on TaskRabbit.
  4. Play Games on Your Phone.
  5. Welcome Bonuses.
  6. Claim Free Stocks.
  7. Real Estate Investing.
  8. Sell Items Online.
Dec 31, 2022

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

Yes, self-employed freelance workers can qualify for a personal loan. Instead of providing W-2 documents to verify their income, they will need to provide alternatives such as tax documents or bank statements.

Is it harder to get a personal loan if you are self-employed? ›

But qualifying for a personal loan can be a bit more complicated if you're self-employed. That's because the lender may ask you for documents proving your income during the application process. For many applicants, that means providing W-2s from their employers.

Can we provide personal loan to self-employed? ›

Financial documents that show stability of income will help you easily get a Personal Loan for self-employed. The bank may also require self-employed individuals to be in business for a certain amount of time. You can check your Personal Loan for self employed eligibility here.

Can I get a small loan if I'm self-employed? ›

It's possible to get approved for a personal loan when you're self-employed, but lenders will likely put your finances under a microscope to make sure you earn enough income to keep up with payments.

Can a personal loan be approved without income proof? ›

Most lenders offer them to you once you meet eligibility criteria and submit a handful of documents, such as identity, address and income proof. However, some lenders will disburse online personal loans even if you don't have income proof.

What proof of income do you need for a personal loan? ›

Evidence of income may include recent tax returns, monthly bank statements, pay stubs and signed letters from employers; self-employed applicants can provide tax returns or bank deposits.

What documents do I need to get a loan if I am self-employed? ›

Self-Employed Individuals

Identity and residence proof (KYC), such as PAN card, Voter ID card, Aadhaar, etc. Income proof, such as latest 2 income returns, latest two years P&L accounts and B/S (with schedules), six-month bank statement, etc.

What is the minimum income for personal loan for self-employed? ›

Eligibility Criteria for Self employed personal loan

You will have to be at least 22 years of age. At the time of the maturity of the loan, the applicant should not be more than 65 years. The minimum annual income of the individual should be Rs. 4.8 lakh.

Which personal loan app is best for self-employed? ›

Click Here to Apply for Instant Personal Loan from the PaySense Website.
  • LazyPay. Powered by PayU, the same company that acquired PaySense, LazyPay is one of the Top Finance apps offering Fast loans in India. ...
  • IDFC FIRST Bank. ...
  • Dhani. ...
  • CASHe. ...
  • Fullerton India. ...
  • Fibe. ...
  • Nira. ...
  • Credy.
Jan 31, 2023

Can I get a loan with a 1099 job? ›

Yes, 1099 earners can use 1099 earning statements or bank statements to qualify for a loan. This loan option helps those who cannot verify income based on tax returns. Typically, one to two years of the most recent statements are required and the borrower must be employed with a single employer for two years.

Why is it hard to get a loan when self-employed? ›

Getting any kind of loan usually requires showing proof of income so lenders feel assured a borrower has a steady salary that can keep them making their monthly payments on time. If a borrower is self-employed and makes an irregular income, it can be difficult for them to prove they're ready to take on a loan.


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