Personal loans for people under administration or blacklisted are available. Although a little more difficult to source than those for people with a great credit history.
Personal loans available for people under administration include:
- Pawn Shop Loans
- Consolidation Loans
- Micro Loans
- Loans from Private Lenders
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It is true that most people suffer from debt problems at some point in their lives.
Bad credit can become cyclical so that you might feel the only way you can escape your debt is to take out more loans to cover them.
It can become a habit to borrow money instead of make money but it is a habit and addiction that you must break.
One of the ways that you can do this is to allow someone else to review your business practices, or be administrated.
The loans for under administration clients in South Africa require a different kind of security.
Pawn Shop Loans for Under Administration Clients
Pawn shop loans in South Africa are a way of borrowing money with no credit check and no payslip.
However what you do need for a pawn shop loan is personal goods to offer as security against your borrowing.
Therefore the amount of money you qualify to borrow with a pawn shop loan depends on the value of your goods. As well as the condition of your items.
The reason these are good loans if you are under administration or blacklisted is because you get cash almost instantly.
Just use caution here. Because if you cannot pay back the loan with interest the store will sell your goods to make up for it.
Loans for Under Administration Clients include Consolidation
Another way that is likely to make you more appealing for investors and banks is to seek consolidation.
Debt consolidation is one of the most common ways that personal loans for people under administration are sought.
It is easy to explain how this choice can make your debt problems seem easier to manage.
First, you borrow money. You may think, “Hold on, more loans?”, but in fact it is a loan to fix all loans.
How? Well, your one big loan will cover all of your other outstanding debt. So that you only have one monthly repayment to make at a fair interest rate.
That way, your credit record is instantly improved so you can move from bad credit to good credit. If you make your one repayment on time, you will no longer be blacklisted. It is very simple.
If you’ve never heard of consolidation before you should talk to your bank or financial advisor and ask them about it.
Having bad credit, being blacklisted or having your company under administration can feel incredibly disempowering. And this is one of the ways that you can take control over your life again.
Then, when banks review you for loan potential, they will see that you have made the choice to take control of your debt and your financial life.
Micro Loans from Private Lenders
Micro loans in South Africa usually come from private individual lenders.
This is another lending option for people under administration or blacklisted.
Micro loans are small amounts of cash lent to people over short terms. This can be handy when you need money urgently.
However, micro lenders are well aware that clients applying for this kind of loan are desperate.
Therefore interest rates are inflated and it can end up costing the borrower a small fortune.
Micro finance has earnt the private lenders the label of “shark loans” in South Africa.
Investopedia has a good definition of micro lending and how it works. Read more here.
In Conclusion
The loans available for people under administration in South Africa that we mention are different to regular loans.
Because you need to borrow from a company or private lender that will let you borrow money with no credit check.
This kind of borrowing can be a little risky and expensive. Risky because you don’t always know what kind of client you are dealing with.
Expensive because the interest rates will be higher as a client under administration.
So do your research and choose wisely.
Can I get a loan when I am under administration in South Africa? It’s an age old question and the simple answer is yes you can.