Types of Bad Credit Loans in South Africa

Types of Bad Credit Loans

Whether applicants looking for a personal loan or another type of loan this post gives information about loans for blacklisted in South Africa. We’ll deep dive into loans as well as types of bad credit loans in below.

Types of Loans
There are two types of  personal loans available. Firstly unsecured loans: This type does not require collateral or assets to be provided to the lender as a guarantee of repayment. These types of loans are a lot harder to obtain as the risk to the lender is very high. Types of unsecured loans are; credit cards, student loans and personal loan. Secondly; there is secured loans, which is provided against an asset as a type of security. These types of loans are a lot easier to access, especially if the asset is a car or property, which makes it easier for those of us who are blacklisted of secure loans. Mortgages and car loans are the best examples of secured loan types.

Minimum and Maximum Amount of Borrow
As shown previously, there are many places to acquire loans in South Africa. Following on from that applicants are probably wondering how much or how little they can actually borrow. The answer is, every case and every lender is different depending on many factors. However, the lenders that are listed above provide information regarding their minimum and maximum amounts which will help you to choose the best option.

There are many companies within South Africa that offer loans for blacklisted people, here are a few that may be interesting.
– Blacklisted Loans: A lender who offers personal loans to those with a history of bad credit.
– Mr Cash Loans: They offer both unsecured personal and cash loans to blacklisted people.
– TA consultin: Offer unsecured bad credit loans and blacklisted loans.
– Ezifinance: This lender offers an array of loans for those who are blacklisted; consolidation loans, personal loans, short term and long term loans.

Interest Rates
Similarly, interest rates depends solely on the lender and the amount of money the client is borrowing. In addition to this each company has different payment terms. Below; the interest rates and payment terms of the lenders mentioned are provided. There will be the one which suits best your conditions.

The interest rates charged on their loans range from a minimum of 22.3% to a maximum of 28%, with payment terms between 7 – 72 months.
– Mr Cash Loans: Their website provides that their annual interest rate is a maximum of 28% as prescribed by the National Credit Act, 2005 for unsecured loans with a repayment period of 12 months or more
– TA consulting: Their interest rates are based on independent credit files. However, are from 13% to 23% based on a 3-60 months repayment period
– Ezifinance: Their interest rates seem to be significantly higher per annum with their annual interest rates going from 32.10% all the way to 60%

Types of Bad Credit Loans: Blacklisted Loans
They do not provide a minimum amount therefore this may be ideal for those smaller loans. However, they do state their maximum lending capacity is up to R150,000
– Mr Cash Loans: This lender states their minimum is R3,000 and their maximum is up to R150,000.
– TA consulting: Again, do not provide a minimum however their maximum is up to R150,000.
– Ezifinance: Their website states their small loans up to R15,000 and large loans up to R1,000,000.