All you need to know about Personal Loans in South Africa

Before you apply for a personal loan you need to consider the following:

Do I really need more money? Do I have money available after all deductions to pay for the loan? Do I simply need to check my expenses and try and cut down on unnecessary spendings? Why do I need this loan, is it to consolidate all my other debt?

If you are applying for a loan for spending money, I would advise you to reconsider. A personal loan is normally issued on higher interest rates than normal, all depending on your credit record. If you are for instance blacklisted or have judgments, you would be considered as a high risk customer. You might qualify for a loan, but you will be paying back with a very high interest rate.

Before you apply with any financial institution, you also need to know that all these companies link to one system. If you apply with 10 companies all at once, your credit score will drop to an all time low and you will be declined due to "High risk factor", but please be honest about your credit record when applying for a personal loan.(They will be able to view everything about you anyways.) Shop around before applying and ask what interest rate you will get when you apply for a loan. There are awesome Personal Loan Companies on the Internet that are willing to do the "Hunting" for you. Make sure before you apply that they will not just send your application to 10 different companies and hereby reduce your credit score, but that they will search for the best company to suit your criteria. Some of companies ask you a "fee" before you even qualify for a loan, this is normally called an admin fee, but they do not guarantee you will get a loan. Another crucial factor about Personal Loan Companies that you MUST query is, to make sure that they are registered with NCR, National Credit Regulator of South Africa.

If you are applying for a loan to consolidate all your debt, please make sure that you do settle some or all of your debt. Do NOT spend the money on everyday expenses.

Loan Hunters