Quick loans are financial lifeboats for folk who need money in a hurry. They are characterised by a fast approvals process, limited paperwork and flexible repayment terms.
But with so many instant loans options to pick and choose from, how do you know you’re getting the best deal, given your circumstances?
Trustworthy sources of fast loans for South Africans
In this article, we provide an overview of potential sources of quick loans.
Using your credit card to cover monetary emergencies can be a viable option. However, if you haven’t already secured a line of credit from your bank, you’ll have to apply for one. That in itself can take days, even weeks… and there’s no guarantee you’ll qualify for a credit card, especially if your credit history is a bit dodgy.
Personal bank loans
These days, banks approve personal loans within a day or two. The downside is you have to be permanently employed. You also need a solid credit record to qualify for an unsecured bank loan. If your credit score is low, you can expect to pay a reasonably hefty rate of interest.
Short-term loans from family or friends
Borrowing money from family and friends can be the quickest, cheapest and easiest way of raising emergency funds. You’ll probably be charged a low interest rate – if any – but the big problem is that if you can’t pay the money back, you risk ruining a perfectly good relationship.
Access your home bond
If you’re paying off an access bond, you can leverage your property’s equity to cover unexpected expenses. This type of quick loans option does, however, carry a significant risk. However, if you default on the monthly repayments, the bank is entitled to repossess the bonded property.
When you’re gainfully employed, a payday loan may seem like a great idea. But if you can’t afford to pay the money back within the stipulated period, it can quickly become a self-sustaining debt trap. These types of fast loans are unsecured, so they usually have high interest rates. Hidden costs and penalties can also add up fast.
An asset-based loan is a type of secured loan. The borrower provides an asset of value, such as an item of jewellery or a fully paid up vehicle, as collateral for the loan. Once the loan and agreed interest is repaid, the asset is returned.
Why choose quick loans by lamna
In South Africa, lamna is the market leader in the asset-based lending space, with physical branches across the country and several years’ experience in the industry. Our company is a registered credit provider and a licensed Financial Services Provider, and our interest rates are NCA compliant.