Online Loan Application has helped thousands of South Africans. But later on that! Dominant banks always made rules and prescription for the credit market. Ever since the 2008 global crisis the way financial institutions operate has been affected adversely. Credit was given easily; even people who could not afford to pay back their loans were given the benefit of the doubt. However it all come crushing when the National Credit Regulator realized that more than 6 million people have credit and bad debts are mounting, threatening the stability of the economy. Banks had to make their lending practices tight.
African bank was the most affected and was put under a curator. The South African Reserve bank had to come up with more than R6billion to bail it out. Loans that were given to the vulnerable were not paid back. Now application for loans comes with strict standards and lenders are required to makes sure that the borrower meets the regulations of the NCA.
Big banks require your credit profile to be very clean and you must be working earning more than R5 000 for some institutions to consider your application. There are a number of micro credit lender and small operators that are willing to loan money to the working class of South Africa. Some go as far as giving loans to people who have been blacklisted. You may also be blacklisted and you know it was not your fault. You may have been retrenched and you could not pay off your debts. Micro lenders have a system in place for checks when dealing with people with bad credit records.
The traditional way of loan application was always done by going to the bank, standing in lines. Waiting for the bank consultant, fill in the form and then wait. Sometimes wait for 3 to 7 days, only to be disappointed and you have to start the process all over again with another bank. Alternatively you would go to a micro lender and fear the interest rates. However, things have changed.
Technology has brought convenience to this sector. With the use of the internet it is super-fast to access credit. You can apply for a loan and within an hour get approval when you meet all the requirements. With some lenders you can even get cash transferred to your bank account in less than an hour. This is how efficient the sector has become. Online Loan Application are great, they save time and money. You don’t have to queue or spend transportation money going from one place to another looking for a good loan deal. You can apply for a personal loan online, even to the amount of R150 000. With online loan application you can get low interest rates and flexible repayment options. Meaning you will be able to afford to pay back the loan within the time period. Online loans has assisted many in the nation in time of need.