How to choose the best loans companies
Are you a Southern African citizen and looking to get a loan? Then this article will be especially useful for you.
If you have no idea which loan option to get, you should research the market first. Follow these steps to choose the most reliable lending company:
- Compare local lenders available in your region
- Consider to the interest rates and additional fees
- The services should be free to use
- Pay attention to the penalty fees
- Learn everything about the methods of repayment
Once you take into account all these factors, choosing the right lender will be a breeze.
Types of loans online you may qualify for
There are multiple lending types. So, once you find a financial institution to rely on, you can consider the most suitable offers. Some loans are given on extended terms while others require repayment within 30 days. Some borrowings from lenders have expensive interest rates, while others are more affordable. Study the possible financing options and qualify for funds without any troubles.
Personal loans
This lending type is divided into two categories such as secured or unsecured personal loans South Africa. Although they may seem relatively similar, they have clear differences.
- Unsecured loans don’t imply assigning guarantors. This means you don’t risk your property in case you fail the repayment. However, it is advisable to make timely repayments to avoid penalty fees. Usually, unsecured borrowings have higher interest rates. This is because you don’t guarantee the timely repayment with collateral. The amounts of this borrowing may vary from R2000 to R20000. The terms may be from 1 month to 180 month. However, you should understand that the longer term you apply for, the more funds you will repay in total.
- Secured online loans require assigning the collateral. In this case, the amount depends on the value of the guarantor. So, if you identify your vehicle as collateral, you may expect to borrow the amount of money that aligns with the value of your vehicle. The term collateral determines an asset that a financial company accepts as security for a borrowing. This kind of lending is relatively risk-free for the financial institution, as it has the right to liquidate the asset if in case the client defaults. Nevertheless, secured cash advance has numerous upsides and affordable interest rates are the most essential ones. They are lower compared to the previously-described contender.
Both secured and unsecured lending has their strong and weak points. So, it is only up to you to decide whether you want to assign a guarantor to your borrowing or pay higher interest rates.
Payday loans
This is the most popular type of borrowing which implies a financial company will provide high-interest credit based on your monthly revenue. According to the conditions of this lending, you can qualify only for small loans online for a short period. It is considered a relatively expensive solution, since fees for the borrowing are higher compared to other offers. Usually, it is possible to apply from R400 to R3200. You will need to repay your borrowing and interest rate within 30 days. The certain day is assigned once you sign up an agreement for payday loans online. Usually, it is the day of a salary.
It is possible to prolong a repayment period by contacting a lender before the term expires. Usually, this procedure requires some additional fees. If you fail to cover the debt, you will be charged with the penalty fees. Moreover, in this case, you spoil your credit history, which may be a problem for borrowing money in the future.
The requirements for payday loans South Africa may be as follows:
- The applicant should be no less than 18 years old.
- It is necessary to provide a valid identification document with the South African residence.
- The lender will check a credit history.
- Having a bank account is a must.
- The client should provide an income statement.
If you are on the lookout for 24/7 payday loans South Africa, feel free to approach online lending services. However, it is advisable to carefully research the market before signing a contract.
Vehicle Financing
If you want to purchase a new car, vehicle loans South Africa will be a real help. They have special terms designed for those who want to invest in any means of transport, whether you want to purchase a motorbike, car, boat and even a bus.
This type of borrowing has the following advantages:
- You can afford a vehicle of your dreams.
- It is possible to buy a car, drive it and repay it partially.
- The applicant can choose the term of repayment, whether it is 30 or 180 month.
- If you opt for a secured lending, you will benefit from lower interest rates, which is a rather advantageous option. However, in this case you will need to assign a guarantor.
High-Risk Lending
The modern market also includes companies that will offer loans to high-risk borrowers. If you don’t have enough credit scores or have spoiled credit history, you can approach companies that offer lending for those who have failed with previous repayments.
However, in this case, it is necessary to provide an income statement to prove you have a stable job to make a monthly repayment. Moreover, with online payday loans, you can improve your credit history, which will allow you to later qualify for more advantageous interest rates and longer terms.
Final Word
If you experience financial glitches, you can always approach paperless payday loans from the local or online lenders. The only thing is to specify your needs and don’t borrow more than needed in order not to overpay interest rates. Make sure you can recover the debt before you apply to a financial institution.
Applying does NOT affect your credit score!
No credit check to apply.