top of page
Harmoney_Dot_Red_RGB.png

Can I Apply for a Personal Loan If I Am Self-Employed or Have an Irregular Income?

  • Writer: Harmoney
    Harmoney
  • Sep 9
  • 2 min read

This is a very common question, and the answer is: yes, you can. While traditional lenders may find it more difficult to assess applications from self-employed individuals or those with irregular income, it does not mean you are automatically excluded.


At Harmoney, we believe your eligibility should be based on your overall financial health, not just a traditional payslip. Our sophisticated, data-driven approach allows us to look beyond a fixed salary and assess your ability to comfortably manage a loan.


How Harmoney Assesses Self-Employed and Irregular Incomes

As a responsible lender, we are required by New Zealand law to ensure that a loan is suitable for your financial situation and that you can make the repayments without "substantial hardship." For self-employed individuals, this means we look for a clear picture of financial stability over time.


Instead of requiring extensive paperwork, our 100% online application uses secure, bank-grade technology to gain a read-only view of your bank statements. This allows us to:


  • Analyse Income Trends: We can see your income patterns over a period of time (typically the last 12 months), rather than just a recent snapshot. This helps us understand your business's seasonality or any income fluctuations.

  • Assess Affordability Holistically: We review your income against your business and personal expenses to determine your true capacity to service a loan, ensuring the repayments are manageable for you.


We will also require tax documents, such as Individual Tax Returns (IR3), Company Income Tax Return (IR4) & Profit and Loss Statement.


What Lenders Typically Look For

When assessing a loan application from a self-employed person or someone with an irregular income, lenders are primarily looking for:


  • Consistency: A track record of stable or growing income over a period of at least 12-24 months.

  • Financial Records: Up-to-date financial statements, tax returns, and clear bank records that separate business and personal expenses can strengthen your application.

  • A Healthy Credit History: A clean credit file with a history of on-time payments demonstrates financial responsibility.


Because Harmoney's process is designed to be user-friendly, our online verification simplifies the process of providing this information, replacing the need for you to gather and upload years of financial statements.


How to Strengthen Your Application

If you are self-employed or have an irregular income, you can take steps to improve your chances of getting a personal loan:


  • Maintain Good Records: Keep your financial records and tax obligations (IRD) up-to-date.

  • Separate Finances: Using separate bank accounts for business and personal expenses makes it easier for us to assess your financial health.

  • Improve Your Credit Score: Pay your bills and debts on time and avoid making multiple loan applications in a short period.


If you meet our basic eligibility criteria for a personal loan, we encourage you to apply. Our team understands the unique circumstances of self-employed Kiwis and is committed to finding a solution that works for you.



References:

bottom of page