The concept of online loans scares some people away as they think that the internet is a place for scams.
This is certainly a huge misconception. Virtually all lenders in South Africa offer their loans online and have online applications too. These include all major banks like First National Bank, Nedbank and Grindrod Bank and a huge number of small lenders.
What's more they offer various types of credit products on the web.
Different types of Loans
The quick online loans are undoubtedly the most popular. You fill out a short application form and provide proof of ID and proof of employment. The lender approves you solely on the basis of your income without a credit check. You can get up to R3000 but keep in mind that the term of the loan is typically very short. It may be due on your next pay day.
There are large unsecured personal loans available online as well.
Usually, you can borrow a pretty large amount of money for a term between 1 and 10 years.
The only limit which is legally set is for your monthly payment to be no greater than 40 to 50 per cent of your monthly income. These loans are unsecured. They require no collateral. Their main alternatives, credit cards, are readily available online too.
You can also find secured loans online. These require the placement of collateral which has to be an asset with value which is equal to or greater than that of the principal amount. The most common products of this type are the car loans and the home equity loans.
Consider the types of online loans available and pick the ideal one for you.