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Microloans in South Africa: Market Features

Lending services in South Africa are in great demand. There are a large number of microfinance companies operating in South Africa. A significant number of the country's population regularly uses microloans, solving their financial problems with their help.

After studying the microfinance market in South Africa, the experts received interesting data:

  • The average age of the borrower is 34 years old;
  • The average lending amount is 1,900 rand;
  • The profession of a typical borrower is not defined. Cleaners, drivers, managers, civil servants and even businessmen apply to microfinance organizations to get lending;
  • The purposes to obtain lending are treatment, education, rent payment, etc.;

Microfinance Companies' Work Control in South Africa

The work of microfinance organizations in this country is controlled by a special state agency - the National Credit Regulator. Before starting a business, the owners of future companies need to obtain general licenses for providing financial activities in this organization and separately for each of the types of products they offer. Every year, microfinance company's employees undergo inspections.


How to get a loan when you are blacklisted?

You can get money even if you are blacklisted if you apply to the private lenders. Your credit history is not important for them. What is really important is your capability to cover your debt. One more thing must be taken into account - you’ll likely face much higher fees and even higher rates.

How to pay off a car loan faster in South Africa?

To pay off your car lending faster, you just need to add a little extra to your regular payment. How much does a person add? It all depends on how quickly you want to cover your debt.

How can I increase my chances of getting a car loan?

You need to maintain a good credit score. The higher score you have, the more chances you will have to get a car loan. A good score makes the lender give money to you.

How to spot online loan scammers -10 signs to watch out for

  1. No check of your credit report
  2. The lender doesn't have registration in your state
  3. The moneylender doesn't have a physical address
  4. The site of the lender is unsecured
  5. Vague information about the fees
  6. Your lending approval is guaranteed
  7. Request for immediate payment
  8. Many complaints from borrowers
  9. The lender makes you to act right now
  10. No responsive customer service

How to improve your credit score quickly in South Africa?

Thinking about how to improve your score? The best way to do this is never miss your payments. If you pay properly and without delays, you will have a good record for sure.

How credit checks work in South Africa?

When you apply to a microfinance organization to get money, a check is usually done. The lender can get access to your information from one of the credit reference agencies. Before checking your credit file, the creditor usually asks for permission to do this. This item is usually specified in terms and conditions for the loan appliance.

What is loan refinancing and why should you care?

Refinancing is the issuance of a new loan to a borrower to repay his/her previously taken debt fully or partially. Is it always advantageous? Actually, no, it isn’t. When refinancing, the re-borrower faces the following unfavorable circumstances:

  • Additional expenses. They are always paid by the client.
  • A new set of documents.
  • Increased requirements regarding the borrower's solvency.
  • Age restrictions.

Why was my loan application rejected?

Here are several reasons why your credit application was rejected:

  • Bad credit history
  • Low income level
  • You have provided invalid information
  • Not all documents were provided
  • You are less than 18.

Read carefully the requirements you need to meet to get the lending before you apply to the microfinance organization.

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Applying does NOT affect your credit score!

No credit check to apply.