Secured Loans Definition and Main Info
According to the secured loans definition, this type of borrowing offers affordable interest rates but requires collateral. It may be either your apartment or car. Everything depends on a particular amount of money you are going to borrow.
South Africans can borrow from R2500 and R350 000. If it comes to terms of repayment, you can return money either in 1 month or prolong this period by up to 84 months. Such long-term lending allows you to borrow money for business development or purchasing a new property. In case you have such late repayments, the lender may provide some penalty fees. It may be from 1% to 5% of a monthly payment. If the borrower can't consolidate debt, the lender can collect the collateral. This means you may lose your property.
Advantages of Loans Secured on Property
Even if you are skeptical about approaching lending companies, if you look deeper, you will see how many advantages secured loans against property South Africa have.
- Lower interest rates. Compared to personal unsecured borrowings, such type of borrowing has lower interest rates, making them affordable for the clients.
- Fast application process. There is no need to determine much information in the application form. Moreover, there is no need to go to the nearest bank. You can get your money just sitting on a coach.
- Quick approval. Usually, it takes about 20 minutes to approve secured loans South Africa. As soon as a manager will accept your application, you will get a notification on your phone or email address.
- No need to collect tons of documents. Unlike banks, lending companies don't require collecting a bundle of documents. You just need to meet the minimum requirements of a lender to receive funds on your bank account the same day.
- Ability to get money even with poor credit history. If you apply for secured loans without proof of income in South Africa, you can get a positive response even if you have a spoiled credit history.
- Flexible repayments. Depending on the conditions of a company, you can choose the most favorable repayments for you. Thus, you can pay off your debt without any hassles.
- Large amounts of money. Secured personal loans imply large amounts of money. That is why they are so popular among businessmen.
To get loans secured on property, each applicant should meet the following requirements:
- have a property to identify it as collateral;
- have constant income;
- be a resident of South Africa;
- be at least 18 years old;
- provide identification document and income statement;
- have good creditworthiness.
Even if you don’t have all these boxes ticked, you can still apply for a cash advance and get fast funds.
If you have emergency expenses, secured personal loans South Africa may be a real finding. They have flexible terms and conditions suitable for any kind of client. It is necessary to research the financial market in South Africa to pick the lending company that suits you most. Apply the above-mentioned tips to find a decent lender and successfully repay your borrowing.