Personal Loans Rates
June 23, 2014
As the cost of living continues to soar, many people are being forced to apply for loans online. You might need cash for a deposit on a home or are simply trying to survive on a daily basis. Whatever you need, personal loans rates are making loans more attractive.
It is easy to apply for cash loans online. You simply provide your ID number for the lenders to determine your credit information. That includes judgements and defaulted payments. If your credit score is favourable, just fill out the form and send them through to the lender.
It’s that easy! Once you’re approved for a loan the funds are transferred to your bank account within a few days. Do bear in mind that the interest that loans generate can end up being more than what you borrow.
Online Loans in South Africa
SA has one of the strictest lending policies on the globe. Therefore the National Credit Act has been set up to protect consumers who get themselves into credit agreements with lenders. A regulator sets the maximum personal loans rates that lenders can charge. So, before signing anything, you should have a look at the rates. You can even make use of an online loan calculator to ensure that you understand the rates.
However, before you set out to online apply for personal loan, make sure you can afford it. That doesn’t just mean having an idea of how much you can pay back monthly. It also ensures that you’ll be able to continue making repayments if, say, your salary was reduced.
Make sure you’re honest about how much you can afford and also disclose any other debt obligations to lenders when looking at personal loans rates. The credit provider will look into credit bureaus to find out whether you have any other debts and how much they total.
Types of Loans
- Short term loans – these are the most common types of loans and include bank overdrafts, credit cards, in-store finance and vehicle finance.
- Long term loans – these include mortgages and bonds as well as debt consolidation loans which normally take the form of a mortgage secured on a property.
In other parts of the world there are other types of long-term borrowing such as secured loans (secured against a property) and second charge loans. Equity release mortgages are growing in popularity in South Africa and are perfect for older people.
- Standard personal loan – if you’re after a significant amount of cash but wish to pay it off as quickly as possible, this type of loan is a good option as opposed to amassing plenty of little debts in different places like overdrafts and store credit. Low personal loans rates are a huge help in this regard. With this type of loan you can usually borrow as much as R30 000 but be aware that the interest rate can be as high as 42% depending on whether you’re looking for loans for bad credit and other circumstances. If your credit record isn’t too favourable, and you’ve previously accumulated arrears, you may end up with high interest rates.
Personal loans rates
Make sure that you look closely into personal loans rates and only get into a personal loan if you know you can comfortably afford the repayments. If you’re wanting a personal loan because you’re battling to pay off your other debts, it may be more suitable to look at debt consolidation loans and debt management.
Next step: complete and submit the form on this page to find out what a personal loan will cost you
All info was correct at time of publishing