If you’re under debt review, you’ll know all about the rules imposed to help you manage your debt. To normalise your financial situation, you have to pay off your creditors at the terms negotiated by your debt counsellor.
There’s no wriggle room, and no access to lines of credit. Applying for an unsecured loan from a traditional lender, like a bank, is out of the question.
The purpose of a debt review is to consolidate what you owe and enable you to pay this off in affordable monthly instalments. It makes sense not to borrow more at this point – but in practice, you may need access to cash for all kinds of reasons.
What about access to emergency funds?
Even the best financial plans often fail to factor in unexpected expenses.
You may need to pay for unforeseen medical or dental expenses, motor vehicle or household repairs, or a surprise school excursion.
As a business owner, you’re obligated to pay staff salaries to keep your business afloat, or you may be forced to find the money for an above-inflation office rental increase.
If you can’t borrow money from a reputable lender, what happens when you need access to emergency funds? A practical solution is an asset-based loan from lamna.
Asset-based debt review loans
Asset-based loans are one of the very few legitimate options available to South Africans under debt review. They represent a safe way of borrowing money over the short term, without incurring the wrath of the National Credit Regulator (NCR).
lamna offers cash loans based on the value of assets you own. This could be a car, boat, luxury watch, jewellery or any other high value item that is fully paid up and owned by you. Business owners may also use commercial property to secure loans.
The size of the loan is determined by the independently assessed value of the asset. The terms are flexible and negotiable, and interest rates fall within the NCR guidelines.
Once the loan agreement has been signed and the asset surrendered for safekeeping, the cash is deposited into your account. Once you’ve paid back the loan and agreed interest, the asset is returned to you.
This type of debt review loan is an example of a secured loan. There are no credit checks, you don’t have to submit proof of income and the loan is not recorded on your credit record.
As a result, securing an asset-based loan from lamna won’t impair your ability to earn a debt clearance certificate.
Why choose debt review loans from lamna?
- NCR registered credit provider
- No credit checks
- No proof of income
- Quick loan processing
- Flexible terms
- Reasonable interest rates
- Does not affect the debt review process