SHORT-TERM LOANS IN PAARL
If you live in Paarl, there are plenty of opportunities to secure a short term loan, While many financial assisting establishments only deal with clients who have good credit scores, it is very much highly possible to get a short term loan with a bad credit history.
The fact of the matter is, it is now a realistic possibility to get financial aid for that dream or goal you have set for yourself. Many times, the borrower may be in a position where most lenders have refused to issue loans to them as a result of bad credit history. There are financial institutions that will offer loans even if the credit history is bad. The interest rates may be higher but the loan will still be approved. There may even be situations where the bank will approve a payday loan for an individual with a bad credit history, and adjust the interest rate according to how bad the history really is, among other factors. At times institutions may offer short term loans to individuals without carrying out any checks of the credit history. This is a facility that is provided at the discretion of the institution.
These short term loans can also be extended to companies that need money to meet their financial obligations and don’t have a line of credit extended to them by their banks. There may even be times when these short term cash loans can also be availed by students who are finding it difficult to meet their payments for rent or tuition fee. Going in for a short-term cash advance is a decision that it should not be taken lightly. If you do decide to take a short-term loan, you must then decide if you intend on taking it from a bank or a private lender. So let’s take a look at banks and private lenders match up to one another for these loans.
Interest rates: Banks tend to have cheaper interest rates compared to the interest rates charged by private companies. This difference can be quite considerable at times when banks charge an interest rate of 36% and private companies charge anywhere up to 2,000% per annum for short-term cash loans.
Easy approval: There are times when someone applying for a short-term installment loan may not have a strong credit history. In such a case, they are most likely to be rejected for a loan by most banks however, private finance companies will still provide loans to them.
Fast loans: The paperwork required for these loans is typically minimal however private companies offer the convenience of approving the loan and issuing the funds within a few houses. This means that you get access to money faster than you would if you were to apply to a bank.
Regulations: Banks tend to have stiffer regulations about who can apply for these loans which tends to eliminate a number of would be borrowers. Private companies, on the other hand, do not have stringent regulations making them easier to apply for. In general, short term loans or payday loans should not remain as an absolute last resort because they tend to be very helpful in great times of need. However, if you must take one, make sure you take only the amount that you need and no more. Also, be careful about who you supply your information to, as there have been many cases of loan scams and other types of fraud involving your personal details. Online institutions, though, have taken great precautions to protect your information and streamline the application and approval process for your convenience.
Marie-Anne Vorster, sick with diabetes for years, was desperate. After medical bills for a leg amputation and kidney transplant wiped out most of her retirement nest egg, she found that her social grant and small pension weren’t enough to make ends meet. As she waited for approval for a special pension from the Department of Social Services, she racked up debt with a series of increasingly pricey online loans. After she had not heard from the Department, she was forced to take out a R10 000 from Old Mutual Finance short term loan at a high APR: 183%. “I don’t consider myself a dumb person,” said Vorster, 68. “I knew the rates were high, but I did it out of desperation.” Not long ago, personal loans of this size with sky-high interest rates were nearly unheard of in Paarl. But over the last decade, they’ve exploded in popularity as struggling households — typically with poor credit scores — have found a new source of quick cash from an emerging class of online lenders. One thing lenders and advocacy groups agree on: There is demand for these loans, driven by low wage growth, climbing housing costs, catastrophic medical bills and a lack of job security — factors that have kept many South Africans on the financial edge.