On the whole, the economic situation is such that majority of people find themselves in a position of financial crunch at one point or another.
The result is that one needs to borrow money, until their pay check comes along. These loans are getting easier to take out because the players in the financial market of South Africa have seen this situation as an opportunity to expand their business. In all fairness, from a strictly business point of view, this problematic situation that needed a solution is in fact a lucrative business opportunity for the lenders in the financial sector. This has indeed been tapped into quite nicely, especially with the help of the new technologies that are incorporated in the financial system.
Now, if you are in need of a personal loan in South Africa a few clicks of the mouse button and the submission of your ID number are going to help the lenders run a credit check. As soon as they get their confirmations that your financial records are clean, you will receive the necessary documentation for getting a loan. This is going to complete the process of securing a personal loan.
Getting Personal Loans in South Africa
There are two major categories when it comes to taking out a personal loan in South Africa. One option is known as the short to mid term loan while the other is known as the long term loan. The former types of loans are quite easy to get and in general people who apply for such a loan get it in no time. However, when it comes to the long term loans for big amounts and mortgages things can get a bit more complicated. For this type of a loan it is not just fine to have a default-free or an overall clean record. Here it is important that your income is sufficient to ensure proper repayment.
As stated already, getting personal loans is becoming easier.
However, it should be kept in mind that the interest that one will have to pay is going to make it on a whole a very expensive venture.
To ensure that the lenders don’t exploit the customers, the government of South Africa provides protection based on a law by the name of the National Credit Act. According to this law the maximum percentage that can be charged on the repayment when it comes to the interest rate is 30-35% percent. Added to this there are regulations to protect the customer.