Payday Loans for Bad Credit

How to Recognize the Legitimate Payday Loans for Blacklisted

Given that millions of people in South Africa are blacklisted and cannot get personal loans from bank, there are many lenders that specialize in offering payday loans for blacklisted. However, not all of these products are available from legitimate lenders. Some are offered by loan sharks. These are illegal lenders that charge a very high interest rate which exceeds the legal limit set by the National Credit Regulator (NCR). Find out how to tell the legitimate credit facilities from those of scammers.

Loan Eligibility

The payday loans for blacklisted are especially designed for such individuals. They do not involve a check of your credit history. However, the legitimate lender licensed by the NCR will still check your disposable income and whether you have other loans to determine your eligibility. They will lend you only as much money as you are able to repay.

The loan sharks act in a different way. They do not care what your disposable income is or how much you earn as long as you get a salary every month. Their goal is to take all of your money. That is why they will lend you a fairly small amount of money with the cost of the loan exceeding this amount by two to five times.

Loan Features

The legitimate payday loans for blacklisted come with competitive interest rate and fees. They have a clearly set term and repayment schedule. Their terms and conditions are disclosed to the borrower before they sign an agreement.

The loan sharks, on the other hand, usually do not give you any formally written account of the features of the loan and of its terms and conditions. They are known for raising the interest and the fees as they please. In many cases, they charge additional fees without even informing the borrower.

You can readily get legitimate payday loans for blacklisted. Do not assume that only loan sharks can help you out in the case of a financial emergency if you are blacklisted.