Before you go ahead and apply for a loan online from one of the many South African registered credit providers go through these 5 considerations which may help you with your decision making.
You may be in a hurry to get finance but make the wrong mistake and you could end up in debt for a long time. There are many more points we could put here but we feel these are the top ones to consider that should help you the most.
#1: Make sure you pick the right type of loan for your needs
For instance, you may want to buy a new car. But car finance varies from one provider to the next.
Or maybe you are expecting a sum of money in the next 6 months but want to purchase the car now, in this case bridging finance may be the best option.
Types of loans available include, auto loans, commercial and business finance, construction, home loans, refinancing, secure, unsecure, student loans and more besides.
Do your research and make sure you choose the right kind of solution to fit your needs perfectly.
#2: Negotiate payback terms wisely
It is all very well giving yourself several years to pay back money you borrow from a credit provider but remember the longer the term, the more you will end up paying.
Take your time in deciding over what length of time you would like to repay a loan and try to find a balance between what you can afford and paying the money back as soon as possible.
Any reputable financial service provider will want to be sure that they do not take on a high risk client when they look at your loan application.
If you have quite a few other debts, make sure they are under control to ensure that you are considered a good candidate for loan approval.
#3: Try to get a fixed interest rate
If you can get finance at a fixed interest rate then you need not expect any nasty surprises with unexpected fluctuations in the interest rates allowing you to plan your repayments much better.
Make sure you look around at several different options from a range of different financial service providers. You want to make sure that you get the best possible deal with the lowest possible interest rate and fees.
Make sure your loan terms and conditions suit your situation and needs and do not be afraid to ask for what you want.
Once you have signed the paper work, a loan is something that will be in your life for some time, and you want to be sure that you are making the right decision.
#4: Get legal advice
If possible go through a loan contract with a trustworthy financial lawyers help and advice particularly if you are going to be borrowing a large amount of money against which you may be required to sign property as collateral.
Read the fine print and be on the look out for any hidden or double meanings that could even mean that you pay extra penalties for repaying the finance sooner than agreed with a lender.
It is very important that you only apply for a loan from companies who are reputable, long-standing and trustworthy.
There are many loan shark agencies out there who will be more than happy to charge you incredibly high interest rates that compound very quickly and harass you when you find you cannot afford them.
#5: One loan is enough
Try to avoid taking out another loan if you are already paying back one.
Now this does not refer to debt consolidation loans, they are something different and are used to consolidate many small monthly repayments. If you need to borrow more money then as a last resort speak to your credit provider about refinancing your initial loan or getting some kind of top-up finance but do your best not to take out a separate second loan.
The world wide web is the quickest and most convenient way to get approved for finance in the modern world we live saving tons of paperwork and expenses on phone calls.
Most major banks and registered credit providers both here in South Africa and around the world offer the facilities that allow people to fill out electronic forms and apply for a loan online via the web.
Where can you find companies who allow you to apply for a loan on the web?
There are a number of companies who would be more than happy to allow potential customers to apply for loans on their websites.
Most financial service providers, including the following, already offer this service to clients and potential customers:
- First National Bank
- Standard Bank
- Capitec Bank
What are the benefits of applying for a loan online?
Applying online for a loan means that you can avoid getting dressed and ready and travelling all the way to your bank to apply for a loan in person. It means you can avoid long queues, waiting at a desk while a bank staff member types away at a computer and filling in forms by hand.
When you apply online, you are saving time and petrol! You can apply online any time of the day or night rather than only during working hours, like you would have to if you were applying at your bank.
You will be able to apply from the comfort of your desk, couch or bed without having to get up or move. Applying for a loan online is definitely the most hassle-free way to manage your finances.