Personal Loans

Trouble with a Personal Loan?

The major financial institutions of South Africa are sometime reluctant to lend out money. We sometime forget that these institutions’ main income are generated by the interest we agree to pay when borrowing money from them.

This interest may seem like a huge amount but institutions are taking enormous risks on a daily basis, and will never be 100% certain that when lending out money, all plus the agreed interest will be returned. These institutions can however try and lower their risks by looking at the way you manage your money. Unfortunately if you have missed just one instalment or failed to meet your financial commitments in the past, you will be seen a high risk client.

There are smaller institutions that are willing to take a bigger risk, and will agree to lend out money to clients with poor credit, obviously at a higher interest because of the risk involved.

Tips for Loan Success

Be sure to make at least all of the monthly minimum payments to keep your accounts current.
Before signing a loan application, be sure that you are going to take up the loan. Many people apply to different lenders at the same time and then only take up the best offer. Every time you complete and submit an application form, the institution will check your credit record to see whether you qualify. These records of all your “applications”, whether the loan was taken up or not, will show on your profile and may affect your ability to get a loan.