Unsecured loans are becoming more popular in South Africa. The high cost of living is forcing many people to opt for personal loans when they require access to extra cash. The economic environment is frustrating many consumers nowadays. The rising inflation means that food costs continue to rise, making it more difficult for individuals to afford household goods and to pay for expenses.
Statistics have shown that more people are struggling to pay their debt off and as a result are ruining their credit records. This makes it more challenging for them when they apply for personal loans from mainstream lenders such as banks.
Banks have more stringent qualifying criteria, which often excludes individuals with bad credit who need finance quickly.
The micro lending industry is growing in South Africa and there are numerous lenders available offering various services to meet different financial needs.
Unsecured loans with no credit check are often offered at higher interest rates, because lenders usually take risks on lending money to individuals without security.
These loans are offered in various ways, such as:
- Payday loans
- Short-term loans
Why unsecured loans with no credit checks may suit you:
These loans are usually quickly accessible. This may be helpful for you if you need quick access to cash in order to meet urgent financial needs. You won; have to undergo an extensive application process either. Nowadays most lenders have online facilities for loan applications.
No credit checks mean that the loans are granted to individuals based on individual affordability.
Employment and affordability are usually the main prerequisites. You need to be able to prove that you can afford to repay the loan comfortably throughout the loan term.
Amounts vary from lender to lender, so you may qualify for a loan amount that is suitable to your specific needs.