South Africa has one of the best financial systems in the world. This includes banks, lenders and many other financial institutions making it possible to finance our daily activities. Cash loans are offered by banks and lenders to individuals who find themselves in a corner. Accessing cash in South Africa has been made very easy because of various parterships.
Type of Cash Loans Available In South Africa
There are many different types of loans that are offered by different organations in this country. These simply depend on your financial need and affordability.
The very first type of loans in general terms is what we can a personal loan. These are called personal loans in that it is used for personal needs that you do not have to disclose. It can be used to cover anything from day to day needs to important things like renovations and more. All other loans do fit the description of a personal loans. We try to define others in simpler terms for understanding purposes.
Applying For A Personal Cash Loans In South Africa
The requirements for applying for a personal loan are not different from those of other loans we will discuss here. It will be your ID document, your salary slip (payslip) and your three months bank statement. You must be older than 18 years of age to apply for a personal loan. Your salary must be recieved through a bak account similar to that from which you will pull your 3 months statement.
Understanding Bad Credit Loans In Details
The second type of financial borrowing is bad credit loans that are available in South Africa. These are also commonly known as balcklisted loans for people who do not have a good credit record. There are thousands and thousands of lenders who have hoped on this space to make money by lending to people with bad credit record. One thing about this type of loans is that there are more people who are blacklisted than those who are not, who approach creditors for financial assistance.
Lenders who assist people with bad record have come up with very smart ways to protect themselves from the risk of giving money to blacklisted people. This has helped those who approach them in a sense that it has reduced the interest charged by these lenders. Previously it was common cause that private lenders who offer bad credit loans will charge extremely high interest. It is no longer the case.
What Are Unsecured Loans
Unsecured loans refer to a loan that is given without the lender taking hold of your asset. You simple apply for a loan and you do not provide the lender with anything of value to cater for the risk of failing to repay them. Secure loans are different in that you borrow against your valuable item. The good example of secure loans is porn shops that we have in South Africa.
Secured Loans In South Africa
Getting a secured loan simply means that you borrow money against your valuable item that has been valuated by the creditor. The credit will first use valuation method to determine the value of your item before informing you of the amount you qualify for. Secured loans can be used for medical bills, life surprises, that you may not have the savings lying around for.
PayDay Loans For Blacklisted People
Payday loans basically short-term loans that are offered to blacklisted people to give them quick access to money. They are meant to allow you to go until your next pay be it a week of a month. These payday loans like any other loan, carry payback interest which gets determined by the lender. A good example for paday loans is actually the FNB temporal loan that get offered to you on the ATM or on the APP.
Payday loans often carry much higher interest when you have to repay it to the lender. In fact these type of loans carry the highest interest than all forms of loans in South Africa. They are very expensive but helpful at the same time. Initially you get charged around 5% per month which looks pretty low. But if you have to add that to all charges associated with administration and other charges you will end up paying a lot of money on payday loans.
Heard About Same Day Cash Loans?
This type of a loan is nothing different but just that your application gets approved the same day the money get deposited into the bank account that you provided the lender with.