Loans in South Africa

Loans in South Africa

A Secured Loan is a long-term loan, which has a guarantee attached to it. It’s the best way to obtain large amounts of money and purchase property. Assets are used as security in case of a default. Large amounts of money will not be borrowed to you without assurance, which is why you place your home or assets as leverage to guarantee that you will repay your loan on time. Secured loans consist of low interest rates and longer repayment options.

How to apply for a loan?

What will you need to apply for a loan?

  • A good credit record
  • A regular monthly income of at least R5 000
  • The details of your bank account into which your salary is paid

TYPES OF LOANS

Banks provide various types of loans to ensure that they meet all your needs.

  • Home Loan – The bank borrows you money, and the house remains the property of the bank until the final instalment is made. Consumers are required to pay back the loan on a monthly basis, at the given interest rate and over a stipulated period, normally 20yrs.
  • Car Loan – Most banks provide car loans for both used and new cars. Consumers pay back the instalments on a monthly basis, and the vehicle belongs to the bank until the final payment is made.
  • Personal Loan – Banks provide different options when it comes to a personal loan. This is a financial solution ideal to suit all your needs. The amount of money that you can borrow depends on the chosen bank, your financial eligibility and affordability to repay the loan.
  • Business Loan – A business loan provides you with the capital to start your business venture. The bank provides you with the money and you are required to make the repayments after an agreed period of time. The requirements vary according to each bank and whether you are a new business or have been in operation plays a major part in your loan application.

Getting a Loan with Bad Credit

Bad credit loans are also sometimes referred to as blacklisted loans and simply refer to a personal cash loan that is offered to an individual that has a bad credit history.

One way to get a loan from a bank when you are blacklisted is to offer up security in the form of your home or equity in your home.  Although with a bad credit rating it is difficult to get a loan at a cheap rate. This is Largely because of the risk associated to lending to clients with a low Credit rating. However the good news is, most south african loan companies offer loans for blacklisted people and even run debt consolidation programs for them to help them get back on their feet. Debt consolidation is basically putting all your various loans into one loan payment. This helps reduce the rate of default by the client.

On the other hand, offering security allows you to secured a personal loan with bad credit and a lower interest rate to boot. Another form of security is that of your vehicle, provided that you own it outright, you could use it to secure a loan quickly and easily.

Finally, if you’re looking for a small, unsecured short-term loan you could opt to make use of a bad credit lender who deals specifically with people who are blacklisted or have poor credit. This, although one of the only options for those with a tainted credit history may be significantly more expensive than a secured loan and will only offer you a small sum of money. This can be a blessing in disguise, Apply for a Loan today.

Applying for a Cash Loan

Cash Loans are simple to help you finance your expenditures at the end of the month. For instance, at the end of the moneth most people have their debit obligations pending, thus the things they need to make payments for. Quick Cash Loans enable you too take out a loan and meet your pending obligations without disrupting your cashflow plans. Personal Loans are however a bit different since they take more time to approve and usually allow you take out bigger loans. Debt should always be planned and managed well. Most south africans have found themselves in a web of payments after payments, from expenses to loans. If you ever find yourself strugling to get out of such a situation, you should consider taking a debt consolidation loans. this loan mainly puts together your existing loans into one loan with a longer repayment plan. Although you will definetly pay more than you owe intitally it is a great option to have. Considering the fact the Consolidation loans allow you the time and peacce of mind to till keep living your life while planning your repayments. People wiith bad credit can also apply for Bad credit loan. These loans are mainly for people who have been blacklisted and hence find it difficult getting a loan. The terms of this loan is strict but its better than nothing. Payday loans is another interesting product offered by banks which help workers meet their end of the month expenses and make part payment with the next months salary. this can bbe very helful when you find yourself financially handicaped. banks in south africa usually give good loan rates.