Loans Unlimited exists in South Africa since 2007. Since then, they have helped their Platinum Club Members to get excellent loans with low interest rates.
Personal loans in South Africa
Before taking out a loan,one has to consider the interest rate in the first place.
Few people today are able to pay without planning, a huge amount out of their pocket. For this reason, most people are dependent on a good interest rate for personal loans. The interest rate determines exactly how much needs to be paid back for the loan.
Therefore, the borrower needs to know:
- Who decides about the interest rate
- Why the interest rate keeps fluctuating
- How changes in the interest rate will affect the borrower
In South Africa, the South African Reserve Bank set the interest rates. The interest rates fluctuate more in South Africa, since South Africa has a developing economy.
Small, private loan companies in South Africa have been spreading though, to provide for the poorer communities personal loansin South Africa.These loans are unsecured loans. There are people who pay an interest rate of up to 40% on these unsecured loans. That means four times higher than the average interest rate in South Africa.
After the collapse of African Bank, the South African Reserve Bank warned lenders to allow fewer unsecured loans.
Bridging loans are options for short-term funding. They are mostly used in property transactions, for example with home loans. These loans are therefore short-term loans. The interest rate of these loans are therefore much higher than in normal loans.
Details about Loans Unlimited
Loans Unlimited is a relatively new company, existing since 2007, like mentioned before.
Loans Unlimited encourages their clients to become members of their Platinum Club. The reason for this is mainly to encourage clients to take active control of their financial lives. This will result in clients being better informed about finances in general. Better informed people can contribute positively to the economy of the country.
Benefits of Loans Unlimited ‘s Platinum Club are:
- Access to the Resource Centre of the Platinum Club.
- Access to the possibility of finding loans.
- Access to budget-saving information.
- Lower insurance rates, because of network partners.
- The possibility of making use of the debt management service.
It is clear that the above-mentioned aspects from Loans Unlimited are meant to make a positive difference in people’s financial lives.
There is only a once-off payment of R350 to become a Platinum Club Member of Loans Unlimited. The requirements to qualify are relatively simple:
- It is meant for South African citizens.
- The minimum age is eighteen years.
- The minimum amount of regular income is R1500.
- The person has to have a South African bank account.
Potential cost of the loan:
Loans Unlimited have an informative website as well. Under ‘Apply for a loan’, important and useful information is given, concerning the borrower. The potential cost of the loan at Loans Unlimited are explained in broad terms:
- The interest rate is worked out as a certain percentage of the amount from the loan (per year).
When the percentage is higher, and the payback period longer, one will pay more interest.
- The initiation fee is the amount to be paid to get the loan started, meaning approved, including all the documents, etc.The minimum that could be required, is R150 plus ten percent of the loan amount. The maximum may not be more than R1000. Therefore, the total initiation fee at Loans Unlimited may not be more than R1000.
- One is also responsible for a R50 monthly service fee at Loans Unlimited. This is necessary for each active loan one has in his/her name.
Loans Unlimited is an ‘online community’ only. This contributes to the lowering of costs in general. The online loan application can easily be filled out though.
To acquire and arrange loans online, is a new idea for some people. It should be understood as a way to lower all costs, including those to be paid by the client as well.
Safety in submitting online information:
It is completely safe to submit one’s loan application online at this institution. The company states under ‘Frequently Asked Questions’ that the highest data encryption is used. This implicates bank-quality encryption. On top of this, the company also agreed to the following:
- Electronic Communications and Transactions Act
- Protection of Personal Information Act
- Consumer Protection Act
One can therefore rest assured that one’s information is safe.
Loans Unlimited is a financial institution, trying to make a positive contribution in their clients’ lives, and not simply just lending money to receive the interest rates.