Easy Loans: Do They Exist?

Easy Loans: Do They Exist?

What types of short-term loans are easy to obtain? We review the options for South Africans.

An increasing number of South Africans are struggling to make ends meet. All of us are facing a sluggish economy, interest rate hikes, currency volatility, widespread unemployment, high inflation and rising water and electricity rates.

According to the World Bank, South Africans were the biggest borrowers in the world in 2014 – a reflection on the discrepancy between average income and expenses in SA. What’s more, research by Debt Rescue indicates that on average, only 23% of South Africans have money left at the end of each month.

If you need additional funds to make ends meet, a short-term loan may be a good option for you.

Short-term loan options in South Africa

Although short-term loans may appear to be easy loans, many come with high interest rates and hidden fees. In theory, the National Credit Act protects consumers from unscrupulous lenders – but in practice, many desperate South Africans still fall prey to scams and loan offers involving exorbitant costs.

So rather than rushing into a loan agreement, always do your research. Here we outline some of the options for short-term loans in South Africa.

Bank loans

Bank loans definitely don’t qualify as “easy”. Banks have become increasingly stringent with their loan terms and many have laborious loan approval processes, involving a lot of paperwork, time and potential uncertainty.

If you have blemishes in your credit record or are currently unemployed, it’s likely you’ll struggle to secure a short-term bank loan – or the amount that you can borrow may not meet your loan requirements.

Payday loans

A payday loan is a small cash loan, which usually has to be repaid when you receive your next salary payment. These loans are appealing because they involve no credit checks and pay out on the same day.

However, if you are unable to make payment on time, the late fees and interest can accumulate rapidly. Also, payday lenders in South Africa have a notorious reputation for charging wildly exorbitant rates and keeping their clients in perpetual debt.

Asset-based loans

A short-term asset-based loan is a loan made against the value of one or more of your personal assets, such as a vehicle you own, a luxury watch or valuable jewellery. This is a good option if you need cash fast and have valuable assets that you can use as collateral.

Asset-based loans are usually approved within 24 hours, and no credit checks are involved because the loans are secured through collateral.

Get an affordable asset-based loan from Lamna

At Lamna, we offer fast, easy loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork.

For more information about using an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.

ILLUSTRATIVE EXAMPLE

Client borrows R10,000 for 90 days.

Loan Amount
Repayment Period
Monthly Interest
Total Cost of Loan
Initiation Fee
Monthly Fee
APR
R10 000
3 months
R500.00
R2 914.50
R1 207.50
R569.00
60%

Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.

APR & Loan Repayment Period

Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.

Non-Payment

Non-payments may result in the matters being escalated.

Renewals

All accounts may be renewed if they are up to date.

Collection

All payments are made via EFT or direct deposits into Lamna’s bank account. There are no debit orders.

Easy Loans: Do They Exist?

Apply Online

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Easy Loans: Do They Exist?

Apply Online

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Easy Loans: Do They Exist?

Apply Online

Easy Loans: Do They Exist?

Apply Online

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