What are the Required Documents for applying?

We need certain documents to verify your application, please try and have the following documents ready so that when we request it from you, you can send it immediately so that we can finalize your loan application as quickly as possible.

• Latest 3-month bank statement
• Clear copy of your ID book or ID Card (Front and Back on one page)
• Latest payslip

What Loan Terms do we offer and what are the Cost of Credit?

• We offer from a 1-month loan up to a maximum term of 60-months;
• Loan amounts available are from R650 up to a maximum of R200,000
• You can use our Loan Calculator for an estimated idea of what your loan instalment will be.
• The Annual Interest Rate is a maximum of 28% as prescribed and governed by the NCA (National Credit Act, 2005) for unsecured loans with a repayment period of 12 months or more.

 What are the Basic Criteria for Loan Applications?

• You have to be permanently employed for at least six (6) consecutive months at the same company;
• You have to be a South African citizen;
• Your loan application will be subject to a Credit Check, and Affordability Assessment by our credit providers as required by the NCR (National Credit Regulator);
• You need to receive your salary into a valid South African Bank account, which must be in the name of the applicant;
• The minimum age an applicant must be is 21 years and the maximum is 59;
• We cannot assist you if you have applied for or are under administration, debt review or sequestration;
• You need to be able to either fax or email the required documents to us when asked to do so;
• You need to earn more than R5,000.00 per month;
• You need to be able to afford the loan instalment. This will be assessed during the Affordability Assessment by our credit providers during which your Income and Expenses will be verified;
• We cannot assist you if you are self-employed;
• All loan applications are subject to employment confirmation.

How Does a Low Credit Score Affect Your Borrowing?

You may have heard banks or other financial institutions talking about a credit score, and whether it’s high or low. But what exactly does this mean, and how does it affect your lending potential? Unfortunately, many consumers are in the dark when it comes to their credit score, and don’t realise that a low score can negatively impact their ability to apply for credit.

• What exactly is a credit score? When you apply for credit of any kind, a credit check is done to determine what your score is. Based on this, lenders can determine what they can expect if they loan you money, i.e. will you pay them back on time, how often is your credit card maxed out, etc. The higher your credit score, the less risk there is to the lender. So, it goes without saying that you want to build and maintain a healthy credit record. This is especially true when it comes to purchasing a home or vehicle.
• How is a credit score calculated? This is done by using information contained on your credit report, including account information, payment history, and public records and enquiries (requests from other credit providers to view your credit record.) Your score is a summary of positive and negative factors that determines whether or not you’re likely to honour future credit agreements.
• What can I do to increase my credit score? The good news is, if you have a low credit score there’s a lot you can do to increase it, and it doesn’t take long to reflect.
  • Always pay your bills on time
  • Always pay the full amount that is owed each month on your account
  • Make sure you live within your means when purchasing on credit. I.e. if you make a purchase for R 20 000, can you afford the minimum monthly repayment?
  • As a general rule, don’t use more than 30% of your credit available to you. Using more than this could signal to credit agencies that you’re struggling financially – and in turn, will lower your credit score.
• Remember, at the end of the day your credit score is your responsibility, so check your report at least twice a year to make sure there aren’t any errors or signs of identity theft. With basic precautions such as this in place, you can build and maintain a good credit record.

What are the different types of loans available in South Africa?

When considering what loan option to choose, you must first familiarize yourself with what is available. Whether it’s for work related finances or personal needs, long term or short, there are a whole host of loans available, varied to suit your financial needs. In order to help you on your way and protect you against common, loan specific mistakes, we have compiled a list of the different types of loans available in South Africa.

Please note that we offer only personal unsecured loans.

• Installment Loans: Installment loans are loan amounts that are paid back over time, through monthly instalments.

• Personal Loans: A loan of this type is one paid directly to you from your creditor, for you to do with as you please. Although these are usually taken out to cover other similar loan expenses, they are not set and can be used in any way if the circumstances change. Paid back through monthly instalments, the interest rate will be determined by your affordability and credit rating.

• Student Loans: Financial support to ensure your education is taken care of, a student loan allows you to cover tuition fees and accommodation if living out of home. A huge help to many students on a global scale, this is the best way to ensure your fees aren’t forgotten- education is after all, key to success. Not without its nay-sayers, student loans are seen to some as a trap, creating huge debt that can be carried for decades. It is still however, the best way to finance your education.

• Home Loans: Ensuring you have the money at hand to secure a bond, a home loan gives you a large amount of money that can be used to put a roof over your head. A loan type that most people will have an experience with at some point or another, these can often be adjusted in rate and repayment to best suit your position. A helping hand when buying property, these give you the boost you need to invest in your future and make your house a home.

• Pension Backed Loans: In short, this is a way of lending that allows you to guarantee the loan with your pension or provident fund. This is a form of secured lending that allows you to use 50% of your pension fund as collateral in case you cannot pay back the loan within the repayment time period. Repayments are deducted directly from your salary and you need at least R7,000 in your pension fund to qualify.

• Business Loans: A business loan works the same as a personal loan, only that the company is in debt rather than a person as such. Using the company as its own entity, this allows for financial assistance in whichever way the company chooses. With a host of options and rates to choose from, depending on your business and its needs, business loans are a preferred method of financing operations in the early days.

• Vehicle and Asset Finance: Not only limited to cars, but any vehicle can be funded through vehicle and asset finance. Rates and repayment depending on the requested amount, this is the best way to get yourself a vehicle when you don’t have the cash on hand. Taking into account your credit record and financial history, this can be a cost-effective finance option when you need a vehicle.

• Micro Loans/Payday Loans: A payday loan is a small loan that is usually used for emergency expenses at the end of the month. With a term that usually sits around one to four weeks, typically these will be paid back when the debtor receives their next pay check- hence the name “payday loan”. Between a few hundred to a few thousand rand, a micro loan allows you to get cash quickly and easily when you need a helping hand.

• Overdraft Loans: A way to cover unexpected costs, overdraft allows you to write a cheque to the amount you want to borrow- the limit of which is set by the lender. When you repay a portion, that same amount becomes available for overdraft again. This type of loan doesn’t need monthly payment, instead the money will be taken off when cash is deposited back into your account.

What are the Important Elements of Loans?

• Secured Loans.

This pertains to a loan that is secured by assets. What this means is that the debtor puts up collateral- like a car or property- that ensures payment can be recouped, even if through repossession of assets. Lowering the risk to the creditor, this is a failsafe to make sure the debtor pays on time.

• Unsecured Loans.

A higher risk loan, this means that there is no assurance of repayment except the promise of the debtor to do so. Usually accompanied by higher interest rates, this is built on trust between you and the credit provider.

• Fixed Rate.

A fixed rate loan is one in which the interest rate and monthly payments don’t increase over the period of the loan. This ensures that the costs of the loan won’t change and have a negative, unexpected effect on your finances.

• Adjustable Rate.

This type of loan allows for change over the repayment period. The interest rate can change and in turn so will the monthly instalments.

• Long Term.

Usually for bigger amounts, long term loans are paid over a period of years, sometimes even decades. Like home loans, student loans and other bulk loans, these are divided into fairly small monthly instalments.

• Short Term.

Like payday loans, short term loans are smaller amounts that are repaid within a few weeks or months. With higher instalments and higher interest rates, these are usually used for emergency expenses or end of month costs.

With so many options, always make sure you understand what a loan means for your financial stability and future. With options to suit most situations, understanding loans will ensure you get the best possible option for your needs- and make sure you never become over-indebted.

Can I Apply For A Loan If I Have Been Blacklisted In The Past?

If you have been blacklisted in the past, you can apply for a loan. Our credit providers performs a credit check on your name and according to feedback received from all the various credit bureaus and according to the rules as stipulated by the National Credit Regulator (NCR), that feedback will indicate if you qualify for a loan or not. I you then do qualify; an affordability assessment is then done to ascertain the amount you qualify for according to your income and expenses.