Instant Loans South Africa
Tips for Telling Legitimate Instant Loans from Illegal Ones
If you are in the middle of a cash emergency, the instant loans in South Africa are undoubtedly among the best solutions. They are granted in a matter of hours only with a few questions asked. The money is with you on the same day or on the next day.
There is high demand for instant loans and the loan sharks want to take advantage of these. These lenders set interest which is too high to be legal. They are not licensed and can cause you quite a lot of trouble. Here, you will find a description of both the legitimate instant loans and the illegal ones so that you can know the difference and avoid getting into trouble.
How Legitimate Lenders Work
A legitimate lender requires you to earn a monthly income, usually in the form of a salary. They check your disposable income to confirm that it is sufficient for the repayment of the loan without you depriving yourself of necessities. For instance, your application may be rejected if you are already repaying a large loan.
The lender will also disclose the loan's interest, fees, term and repayment schedule before you sign an agreement. The interest will not exceed the limit set by the National Credit Regulator (NCR). All terms and conditions will be in the agreement and you will receive a copy of it.
How Loan Sharks Work
Loan sharks work in a different fashion when it comes to instant loans. They do not care whether you have sufficient disposable income to repay your loan. They will approve you as long as you have income. Some lenders will approve you even if you do not have any income and ask you to place your car or your house as collateral.
These illegal lenders set very high interest and fees and use all sorts of tricks to make the loan more expensive without you being able to do anything. They will not show you the loan agreement. If you cannot afford to repay the loan, they will eventually take your entire salary or get your car or house.
You can easily tell the illegal instant loans from the legitimate ones.