The recent recession that has hit South Africa has made it more difficult for any person to obtain a loan. At the same time, the expenses of South Africans are increasing due to the inflation which the government is finding difficult to control, at least for now. In this situation, the logical solution is to resort to personal loans.
These are basic consumer loans. They are designed to help individuals cover their expenses and finance purchases that they need urgently. The extended financing is typically not very large, but it is sufficient to serve its practical purpose.
The personal loans in South Africa are secured ones. This means that they require collateral to be placed by the borrower. In most cases, this collateral is the salary of the borrower. It could be another asset as well, but this should be arranged with the particular lender.
Given that your salary is the collateral, it is logical for the term of the loan to extend to your next payday.
Basically, you will have to repay your debt using your pay check for the month. This makes things simple and straightforward.
These financial products are very simple to understand. The lender will give you a precise number of the cost of the loan. You will know exactly how much money you will have to pay back when this number if added to the principal.
Any person of legal status in South Africa can obtain such a loan. These financial products are available to everyone. It does no matter how big or small your salary is, even though this may have an effect on the maximum amount of money that you can borrow.
It is important to note that even blacklisted individuals can get approved. Most lenders will not look into the credit history of applicants. It is not a factor which approval is based on.
Just like all other credit products, these loans are not created equal. Some offer lower interest rates and better terms and conditions than others. That is why it is best to use a comprehensive online comparison service. It is especially designed to help you compare the products of a variety of lenders and pick the one which matches your financial needs and your ability to repay the debt perfectly.
It is super easy to apply for personal loans in South Africa. You will need only a few general documents such as proof of identity and proof of employment.