Loans For Bad Credit – South Africa
Alternatives to Loans for Blacklisted from Loan Sharks
It is a common misconception that only the loan sharks in South Africa offer loans for blacklisted. The reality is that there are many legitimate lenders licensed by the National Credit Regulator (NCR) that offer such products. Take a closer look at these and other alternatives.
Legitimate Loans for Blacklisted
Legitimate lenders have started offering credit facilities for blacklisted because there is a high demand for them and this makes them lucrative. It is natural to ask yourself how these loans differ from those of loan sharks. The main difference is that they have interest which is within the NCR limit. Even though it is higher than the interest set on credit facilities for traditional borrowers, it is much lower than what the illegal lenders have to offer.
A licensed lender will calculate the loan amount and instalment size in line with the borrower's disposable income. This guarantees that the risk of them going into debt is much lower. As you certainly know, loan sharks aim to get as much as your income as possible by setting higher interest and fees. At the same time, they will lend you a small amount of money only. If you are not able to repay your loan, they will come after you with all possible means.
In addition to the special loans for blacklisted, you may be able to qualify for traditional ones as well. The government has announced that thousands of people will get an amnesty and they will be removed from the blacklists of credit bureaus. You should check if you qualify.
Many legitimate lenders may be willing to extended secured loans to blacklisted people. These are riskier because you place collateral such as your house but the interest is lower. Hence, these loans are cheaper and easier to repay at the same time.
Always use the alternatives to the loans for blacklisted from loan sharks.