Personal Loan for the Self-Employed: Find out what it is and how to apply!
Are you self-employed, in need of a loan, and don't know where to start? We've compiled all the information you need to apply for credit and the 5 best personal loan options for the self-employed.
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The number of self-employed professionals in Brazil has increased considerably in recent years, and this trend has continued to grow since the arrival of the pandemic.
Moreover, there are numerous advantages to being a self-employed professional, because in addition to not having fixed hours and not having to submit to corporate rules, this professional earns better.
Therefore, it's worth investing in your business, and if you don't have the money available for that, a personal loan for self-employed individuals is the best option.
If you're still unsure whether a loan is the right option for you, don't worry.
In this article you will learn everything about:
- What is a personal loan for self-employed individuals and how does it work?
- How can I prove my income even if I'm self-employed?
- How can I get a personal loan approved as a self-employed individual?
- 5 personal loan options for self-employed individuals that you can apply for now;
- The best option for you.
So, keep reading and we'll explain everything you need to know to raise this money safely and intelligently!
What is a personal loan for self-employed individuals and how does it work?
First and foremost, a personal loan for the self-employed is a loan intended for professionals who work independently, without an employment relationship with any company.
This professional may have some difficulty obtaining credit approval, as they do not have a payslip and generally do not have a pro-labore payment or formal proof of income.
However, credit providers have made it easier to grant credit and more flexible to prove income.
In fact, there are some very simple ways to provide proof of income, which practically every professional has access to. Let's see how simple it is nowadays to prove the income of a self-employed professional.
How can I prove my income, even if I'm self-employed?
Initially, proof of self-employment can be provided in different ways.
The easiest way to prove income is through bank statements, so it's important that your earnings pass through an account. This account doesn't need to be a business account; it just needs to be in the name of the professional who wants to prove their monthly income.
In this case, it's extremely beneficial for you to have a history of being a good payer.
A history of good payment is not a document you need to present to the lending institution, as banks have access to customers' credit scores. Through the score, they will know the likelihood of a customer defaulting or not.
Now, if the income from your work doesn't go through any account, it becomes a little more difficult to obtain. But not impossible! You can also use your income tax return from last year. And your INSS (Brazilian Social Security Institute) payment statements can also help with proof.
Something that greatly helps when trying to get a loan with good rates is not having a negative credit history, meaning not having a negative record with Serasa and SPC (Brazilian credit bureaus). However, even if you have some restrictions, it's not impossible to get credit.
How can a self-employed person get a personal loan approved?
Now that we know how to prove income to apply for the loan, let's see what the next steps are for you to get credit with minimal bureaucracy!
I suggest you start by requesting a credit analysis for some institutions, in order to compare which is the best interest rate and which index will correct the transaction.
Some banks and lenders offer loans with low interest rates, but they use indexers that fluctuate a lot or end up making the loan payments more expensive.
It's also very important to do all the calculations calmly and not close deals with suspicious companies, to avoid the risk of falling victim to scams. Research the company online and check its reputation on complaint websites.
Companies will likely request the following personal documents to perform a credit analysis:
- Photo ID;
- Proof of residence in your name or supplementary document proving that you reside at the address;
- Proof of Income;
- Income Tax Return, if you are not exempt.
5 personal loan options for self-employed individuals that you can apply for now!
With the aim of making your credit acquisition process easier and preventing you from contracting with unreliable companies, We've selected five excellent carrier options and will explain the advantages and disadvantages of each.
1 - Lendico Personal Loan for Self-Employed Individuals
How does Lendico's personal loan for self-employed individuals work?
Lendico is a lending and financing institution that has been in Brazil since 2015. It facilitates credit for self-employed professionals, as it requires minimal bureaucracy. Both the credit analysis and the signing of the contract are carried out entirely remotely.
The minimum loan amount is R$2500.00 and can reach up to R$50,000.00 depending on credit analysis and the amount available for commitment. The maximum installment period is 36 months.
What are the advantages?
The main advantages of Lendico are the ease of obtaining credit and the speed of repayment. After the contract is signed, the money is deposited into the account on the same day if the transaction is completed before 1 PM. If the contract is signed outside of this time, the money is deposited on the next business day.
Another benefit is that they don't require collateral, such as real estate or vehicles.
How do interest rates work?
Lendico's interest rate isn't standardized for all clients. They first conduct a credit analysis before providing a personalized rate. However, The initial interest rate is 1.98% per month.
How to apply?
To apply for credit, you need to access the Lendico website Fill out the form with your information. In a few moments you will receive information about your request and the required documents.
After your documents are approved, you will receive a digital contract. Then, simply sign it and wait for the money to be deposited. Remember that if the contract is signed before 1 PM, the money will be deposited the same day.
2 - Personal Loan for Self-Employed Individuals YES
How does a personal loan work for self-employed individuals?
SIM's personal loan is designed to make life easier for borrowers. It has zero bureaucracy and is also 100% digital, meaning you can do everything from your computer or mobile phone.
This loan has no minimum loan amount and the amount available can reach R$30,000, depending on the credit analysis.
What are the advantages?
The great advantage of SIM is that they don't require any proof of income. Not even a bank statement is necessary. The evaluation is based exclusively on your credit score and history of good payment, and you don't need to have a CNPJ (Brazilian business tax ID).
SIM also does not require collateral, offers a 45-day grace period for the first payment, and has a more competitive interest rate.
How do interest rates work?
Just like with Lendico, the interest rate is also calculated according to your profile. However, SIM's interest rates start from a slightly lower value: 1,69% per month.
How to apply?
To request it is very simple: just access the SIM websiteEnter your CPF (Brazilian tax identification number) and click "Simulate now". You will be redirected to a page where you will fill in your remaining information and confirm your mobile phone number using a validation code sent via SMS.
Fill out the form and wait for the analysis, which will be completed in a maximum of two minutes. If this is the most advantageous offer and you choose to take out the loan with SIM, the money will be deposited into your account within three business days after signing the contract.
3 – Creditas
How does the Creditas personal loan for self-employed individuals work?
Creditas is a Brazilian startup that has been operating in the financing and loan sector, both secured and unsecured, since 2020. It also offers loans to self-employed individuals without requiring a CNPJ (Brazilian business tax ID).
However, there is no option for unsecured loans here, meaning you will need to put up a property or vehicle as collateral for your loan.
The amounts available vary depending on the guarantee you choose, ranging from R$ 5,000 to R$ 150,000. If the vehicle is used as collateral, the range is from R$ 30,000 to R$ 3 million when the guarantee is real estate.
What are the advantages?
Despite the disadvantage of Creditas not offering unsecured loans, this ends up being an advantage. This is because the only option is a secured loan. They are able to offer a significantly lower interest rate than other institutions.
This option is ideal for those who are not in a hurry to hire someone, have a guarantee available, and prefer to save money.
How do interest rates work?
At Creditas, the interest rate depends on the type of collateral you will use. If you choose to use a car as collateral, the interest rate starts at 0.99%a.m., and if you choose to use real estate as collateral, the rate becomes 0.79%a.m. + IPCA.
But be warned! The IPCA is an indicator that can skyrocket if inflation gets out of control. So, despite being a good interest rate, it's a riskier loan.
How to apply?
To apply, you first need to run a simulation and provide your information on the form. Creditas portalA company consultant will contact you to continue the hiring process.
4 – Finanzero
How does the Finanzero personal loan for self-employed individuals work?
Finanzero is actually a banking correspondent, so when they receive a loan request, they obtain quotes from over 40 financial institutions and forward only the best offers to you.
Despite this, the contract is made through Finanzero and is also 100% online.
What are the advantages?
The great advantage they offer is loans for self-employed individuals with negative credit histories. In addition, they research the best interest rates across various banks, saving you the trouble of doing that research yourself.
How do interest rates work?
Interest rates will depend heavily on your profile. As a survey will be conducted across more than 40 financial institutions, each person will receive a personalized interest rate.
How to apply?
To apply for the loan, you must run a simulation on [website/platform name]. Finanzero websiteChoose the amount you need, the payment term you wish to use, provide all your information, and select the best option for you.
The loan will be pre-approved in up to 5 minutes, and after contracting, the money will be deposited into your account within 48 business hours.
5 – Personal loan for self-employed individuals Geru
How does the Geru personal loan for self-employed individuals work?
Geru offers loans for self-employed individuals with repayment terms of up to 36 months. You can apply for a loan from R$$ 3 to R$$ 50,000, and the funds will be credited to your account within one business day of application.
What are the advantages?
Geru doesn't have any major advantage over the four competitors mentioned above. However, like Lendico, SIM, and Finanzero, it doesn't require guarantees.
How do interest rates work?
Geru has the highest interest rate of all five companies analyzed. Its rates start at 2%a.m.
How to apply?
To apply for the loan, you must access the Geru platformTo do this, enter the amount you need, how many installments you want, select the purpose of your loan, and then click "Request loan".
Next, you will need to enter your name, email, CPF (Brazilian tax identification number), and click "Continue." You will be asked to enter your mobile phone number and will receive a confirmation SMS. You will then enter your number on the platform and follow the next steps on the screen on your mobile phone or computer.
So, what's the best option for you?
Now that you know everything you need to know to get a good loan and avoid future headaches, you're ready to choose the best option for your business.
We sincerely hope we have clarified all your doubts about credit. If you still have any questions, leave a comment and continue following all the news we bring about finance.
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