A Comparison Platform for Personal Loans
October 15, 2017
What is a Personal Loan comparison platform?
- Online loan quote providers do all the hard work
- Understanding that Personal Loans are short-term solutions
- Interest rates on personal do not come cheaply
- Seriously consider Personal Protection Plans to cover outstanding loan amounts
- You can repay loans within days or years
Anyone considering applying for a Personal Loan should first undertake a study of all options available on the South African market.
Searching for information online has been simplified by loan service providers who supply a comparison platform that is easy to understand.
Understanding a Personal Loan
Before applying, applicants should understand what Personal Loans are all about.
There are two options:
- A secured Personal Loan where applicants must provide collateral to secure the cash
- An unsecured Personal Loan where qualification criteria are based on credit ratings. Use a loan comparison platform
One can get Personal Loans for as little as R500, up to a maximum of R150 000. Lenders evaluate top-end loans on an individual’s financial stability and ability to repay the loan amount.
Use a comparison platform to look at interest rates
Interest rates for Personal Loans are higher than most other avenues of credit.
These vary from one provider to another, but some finance houses do offer fixed interest rates.
Consumers are urged to try and secure a Personal Loan offering fixed interest rates because their repayment plan will remain unchanged, even if interest rates are increased.
Failing to pay will negatively impact on credit ratings.
A Personal Protection Plan
Most lenders offer Personal Protection Plans.
However, if this option is not available as part and parcel of the Personal Loan, consumers should really pay a little more each month for this cover.
Personal Protection Plans settle outstanding loan amounts in the event of death, specified dread diseases or permanent disability.
Why Personal Loans are appealing
One of the main reasons for the popularity of Personal Loans is the speed and ease of obtaining ready cash.
- Applicants do not have to provide any financial collateral and
- You can get Loans quickly and in a short space of time
However, there are two very important factors to remember.
Firstly, interest rates are far higher than on a mortgage bond, for example, and secondly, they are to help consumers ease their debt load and not use the money on unnecessary spending sprees like an overseas holiday or furniture for the home. Thirdly, you should use a comparison platform if possible.
Consumers can apply for Personal Loans from R500 to R150 000.
You can repay loans within days or five years. Longer repayment periods sometimes apply, depending on the client and the loan amount.
Information required when applying for a loan
Applicants will have to supply:
- Full names
- Physical and email address
- Cell and daytime contact numbers
- ID document details
Other information will include:
- Homeowner, tenant or living with parents
- Employment status
- Salary payments
- Number of dependents
- Bank details
Assessing the loan application
The next step is that the finance house will investigate financials to establish an applicant’s affordability status. In other words, they want to know if the applicant will be able to afford the monthly repayments.
Information required includes:
- Gross monthly income
- Take home income after deductions
- Total monthly expenses
To qualify for a Personal Loan the following criteria apply:
- Only South African citizens can get loans
- Applicants must be at least 18 years old
- Borrowers must pay their salaries directly into bank accounts via electronic funds transfer (EFT)
- Weekly and fortnightly earners can also apply
- Weekly earners must submit their most recent four consecutive payslips
- Fortnightly earners must submit their most recent two consecutive payslips
- Generally, only applicants with full-time employment and who have worked for a company for at least six months get loans OR
- Applicants who can prove that they have a regular monthly income
- Applicants MUST have a bank account
Legally, finance houses cannot approve Personal Loans to people:
- Under formal debt review
- Applicants under sequestration
FAQ (Frequently Asked Questions)
What is a Personal Loan?
This loan is a financial agreement that a borrower repays to stipulated amount of money back to the lender within an agreed time period.
These loans are intended to help applicants experiencing cash flow difficulties and can also be used as a method of debt consolidation.
How does the quoting process work?
Using online loan quote service providers is a quick and easy method of establishing all relevant details required to obtain a Personal Loan.
Simply provide all the information required on the form which appears on the service provider’s web page.
This information is then forwarded to a number of finance houses who provide quotes best suited to individual applications.
Applicants will then receive a number of quotes, including interest rates, the agreed loan amount, the term of the loan, a monthly repayment schedule and, where applicable, credit protection cover.
Applicants then select the loan best suited to their needs and financiers will then make direct contact so that the contract can be finalised.
How long does it take to get the cash?
Once a personal Loan has been granted, the cash is deposited directly into the applicant’s bank account.
The speed with which this takes place depends on the applicant providing the correct documentation.
How are repayments made?
Most financiers prefer repayment via direct bank debit order.
The world of finance is bewildering to most consumers, so selecting an online loan quote provider with a comparison platform is highly recommended.
These companies do all the hard work, saving applicants a considerable amount of time and money.
They are geared to negotiate the best deals because they work closely with the loan industry on a daily basis.
Using an online loan quote provider ensures that applicants will receive the best possible deal tailored to their individual needs.
What’s more, it is a FREE service.
All info was correct at time of publishing