These days, getting financing for purchasing a new house or starting a small business can be a very complex procedure. You may be forced to make compromises to make your dream become reality. The approval rate for loans in Durban is quite low these days after so many bad loans, because of which banks are not willing to take anymore risks when providing credit to clients.
The financial recession gave a large blow to the banking industry in South Africa. Now lenders are taking greater care so as to avoid another threatening situation. All loan applications are analyzed very carefully now. You will have to provide a wide range of documents to show that you will not become insolvent or fail to meet your obligations in anyway in the future. Even after providing all the necessary documents which demonstrate your stability, the bank might take many months before the loan can be approved. Even then, there are chances that your application might be rejected.
Check the website of the bank whose loan program you are interested to see what documents you will have to provide in order to get your application come under process.
Make sure that you compare the loan programs offered by different financial institutions to get an idea about the best interest rates and conditions offered to clients.
Make sure that you go through the loan agreement carefully since there can be many hidden terms that might not seem apparent at first. For instance, the bank might ask you for a commission even though they are charging a feasible interest rate. Promotional interest rates should also be carefully evaluated since they might not last for more than 2 years. After this period, the interest rate will be increased drastically.
Your financial planner would prepare a reimbursement plan for you and also explain what options you have. At the same time, using the services of such individuals is often futile due to various reasons.
For example, some of the advice given by these people can be found for free on the internet. The preparation of the plan might not be as tricky as the financial planner might make it sound like. Apart from that, numerous websites offer specialized comparison of loans in Durban, taking into account all banks and institutions in the city. You should certainly use a comprehensive and independent loan comparison service.