Applying for a personal loan enables you to finance your dreams.
There are many reputable online and traditional lenders that offer competitive personal loans in South Africa, which makes applying for a personal loan as easy as it can possibly be.
What exactly is a personal loan and how much can you borrow?
As the name suggests, a personal loan is typically applied for when you are seeking to finance anything of a personal nature. This could include a lavish wedding, a dream holiday or anything else that you do not have the funds readily available for.
Generally unsecured, a personal loan does not require you to tie your loan to any of your assets. Most lenders offer unsecured personal loans of up to R200 000 with flexible repayment terms and competitively low interest rates.
Let’s look at the key features and benefits of a personal loan
Probably the most flexible loan in that you can use it for anything from a shopping spree to a trip to the Cayman Islands. Another popular use for a personal loan is to consolidate existing debts. The flexibility of a personal loan allows you to spend the money as you desire.
As a personal loan is unsecured you do not have to put any of your assets up as collateral.
Minimal paperwork and easy to apply for
Compared to other loan types, personal loans require minimal paperwork and are easy to apply for. With many reputable online personal loan lenders, you could easily have your loan approved on the same day.
Easy repayment with flexible repayment terms
You have the option of choosing your repayment term, which is generally between 24 and 48 months. The repayment method is also tailored to suit you.
Affordable and competitive interest rates
With the number of personal loans lenders available in South Africa, lenders offer competitive interest rates to attract more borrowers. Personal loans have lower interest rates when compared to other loan types such as payday loans or bad credit loans.
Fixed interest rates
Personal loans have fixed interest rates, which makes it easy to budget for the repayments of your personal loan. Your repayment amount will stay the same for the duration of the loan whereas a variable interest rate can cause the loan repayment amount to decrease or increase accordingly.
Personal loan features that are a bonus
No early repayment fee
Ideally, a lender would not charge you an early settlement fee. Many South African lenders encourage early repayment of loans.
Same day loan approval
The loan industry is a competitive industry, and thus many lenders aim to have loans approved on the same day. Often, loans are also deposited on the same day, depending on your time of application.
Bad credit loan options
Should you have a bad credit score – you should rest assured that many reputable lenders offer bad credit loans, which are usually secured loan options. Nonetheless, this is a feature beneficial to individuals with bad credit in South Africa.
Insurance option on personal loans
At the time of applying for a personal loan, there are potential unforeseen circumstances that may hinder your ability to repay your personal loan. In the event that you are unable to repay your personal loan, it would give you peace of mind knowing you are covered by the insurance offered by your lender.
Online loan application and management
In our current digital age, lenders in South Africa are compelled to offer their clients an online platform, from which they are able to apply for loans online as well as have access to online loan management.
Tailored interest rates and personalised loan packages
Find a lender in South Africa that offers the edge of unbeatably low tailored interest rates. This especially applies to people who have good credit ratings. If you have a good credit rating, you could use such a feature to your advantage, and save on your loan repayment.
General requirements when applying for a personal loan in South Africa
Personal loan requirements might vary depending on the lender you choose. However, all reputable lenders have a few mutual general requirements, which include:
- Applicants are required to be over the age of 18
- Applicants are required to receive an income and verify such income
- Three months’ bank statements
- Valid proof of identification
- Proof of residence
What to look out for when choosing a reputable lender
A responsible lender is a registered credit provider that adheres to all rules and regulations required
A reputable lender practices transparency to ensure that you are not left with unexpected fees and terms of which you are unaware of
Customer care and support
When applying for a loan or throughout the duration of your loan repayment, your lender should provide you with satisfactory customer care and support.
There is no reason to put a hold on your education due to lack of funding, a family holiday, home renovations or anything else you have been wanting.
Simply apply for a personal loan online today and get the cash you need to reach your next personal milestone.