The majority of online loans in South Africa are offered by registered and reputable lenders including Standard Bank and Nedbank. However, if you are inexperienced in borrowing online, you may come across scam websites and get robbed of the little money that you have. Here is some advice to avoid this.
Avoiding Loan Scams
Always check to confirm that the lender is registered with the National Credit Regulator (NCR) of South Africa. They must be able to disclose the full details of the loan including the principal amount, the interest and fees, the total cost of the loan and the repayment schedule.
You can readily do an online research and ask around to confirm that the lender you are dealing with is legitimate. Their website should contain contact details. Call them and ask all questions which are important to you.
Most importantly, you must not pay any fees in advance. Typically, the online loans in South Africa are for small amounts of money and do not have initiation fee. If the lender says that there is one, you should request to have it paid through deduction from the loan. If they wire you the money, you will know that they are legitimate.