Loan Sharks Johannesburg

Most consumers know what loan sharks Johannesburg are and what they do. These are illegal lenders that charge a very high interest rate and fees to make the cost of borrowing a small amount of money huge. If the borrower is unable or refuses to repay their debt, they use threats and illegal means to force the person to pay them. It is important for you to be able to recognize such lenders. Use practical advice to help you with this.

How to Recognize Them

It is important for you to know that the loan sharks Johannesburg are everywhere. They can be found in most parts of the city. Many of them even have their own websites. Their services are widely advertised especially through flyers and word of mouth. You can find plenty of online ads as well.

Eg. Short on cash? Well, if you are based in Johannesburg, finding money would be an easy thing, not to mention that there are plenty fo loan sharks for you to consider.

Look out for lenders specializing in terms of helping those individuals who have bad credit. These agencies are somewhat ready to help anyone desperate for fast cash, whether you have a bad credit or not.

Most of the loan sharks in Johannesburg are offering unsecured loans.

The most obvious sign that you are dealing with a lender that is not legitimate is that they do not have any requirements for loan approval. While legitimate lenders outline their eligibility criteria such as the earning of monthly income, their illegal counterparts never set any. This is because they are ready, willing and able to use illegal means to force you to pay your debt even if you do not earn enough money or have other loans as well.

There are many other obvious signs that you are dealing with one of the loan sharks Johannesburg. The interest rate is very high and so are the loan initiation fees, the loan management fees and the penalty fees. The interest is charged per day rather than monthly even if you borrow the money for a long period of time.

The best way to find out if a lender is a loan shark is to check if they are licensed with the National Credit Regulator of South Africa. You can call the NCR directly or through their website or email. If it is confirmed that the lender is legitimate, you can readily deal with them.

You now know how not to fall prey to the loan sharks Johannesburg.