Online Loans – South Africa
With the rise of the internet, more and more lenders are offering online loans to consumers. These loans are advertised on the websites of lenders. These websites have online application forms which are sent automatically after being filled out. Once you are approved, the lender will notify you via email or another reliable method and the sum will be wired to your bank account.
Legitimate Online Lenders vs. Loan Sharks
You certainly agree that online loans are easy, quick and convenient. However, not all of them are created equal. While most are available from legitimate lenders, there are ones which are offered by loan sharks. The loan sharks are illegal lenders that charge extremely high interest rates. It is easy for them to present themselves in good light online so you should be extra vigilant in order to recognize them. Here is how to do it.
While normal financial providers have clear requirements for borrowers, loan sharks do not. A legitimate lender will give you a loan which you are able to repay with your current disposable income. An illegal one does not care how you will repay your debt. Their goal is to squeeze as much money out of you as they can.
The sky high interest rate, fees and loan cost are clear signs that you are dealing with an illegal provider of online loans. In fact, many illegal lenders will not even disclose these features of the loan. Their website will be full of promises but no detailed information on the loan.
A legitimate lender will never ask you to pass your ID or property ownership deed to them so that they can keep it as surety that you will repay your loan. Only loan sharks do this.
The simplest way to check if a provider of online loans is a loan shark is to find out whether they are licensed to offer financial services and products.