Getting a Personal Loan if You’re Retired in South Africa

Getting a Personal Loan if You’re Retired in South Africa

It can be hard to get a loan if you’re no longer working. We look at how to get a personal loan if you’re retired in South Africa.

Lamna specialises in asset-based loans, which are a convenient and readily accessible loan type for South Africans, including people who have retired.

By contrast, if you opt for a traditional bank loan, getting a personal loan if you’re retired in South Africa can be very challenging. This applies regardless of your age.

In this article, we cover:

Bank requirements for proof of employment

Getting a loan from a bank usually requires proof of income. Most banks will request three months’ worth of payslips to prove you have a steady income.

For self-employed people or retirees, this is a lot more complicated and requires even more paperwork to prove your income or net worth.

In these cases, the loan terms can be less than favourable or the loan may simply be rejected if the bank deems it too risky.

How asset loans differ from unsecured loans

Unsecured loans, like those from a bank, are based on how much you earn and your credit history. The bank makes a judgement on whether or not you will be able to repay the loan. This is why they usually require proof of income.

An asset-based loan is a secured loan that uses a physical asset as collateral for a personal loan. This means there is no need to be employed or to submit proof of income when applying.

The amount you can borrow is a percentage of the market resale value of the asset. If you’re unable to pay the loan, the asset is sold to recoup the loss. This is why your income isn’t relevant.

Personal loan considerations if you’re retired

If you’re retired, think carefully before taking on any debt. You should only take out a loan when you are sure you’ll be able to pay it back in a reasonable amount of time.

For example, if you’re expecting a pay-out from an investment or a retirement bonus in a few months but you need to take advantage of an opportunity now, a short-term loan to bridge this gap makes sense.

If you’re considering a loan to cover other debt or if you don’t think you’ll have the means to repay the debt within the loan period, then a loan of any type if only going to make your situation worse.

Asset loans are considered low risk but you could still end up losing a valuable or sentimental asset if you aren’t realistic about your financial situation.

Getting a loan against an asset: next steps

Getting a loan against an asset is straightforward and fast. Simply apply online with a detailed description of your asset and we will get in touch with a loan offer.

We offer loans based on the value of a range of assets, including vehicles, luxury watches, gold, jewellery and more.

Once your loan is approved and you’re happy to go ahead, we transfer the funds directly into your bank account within 24 hours.

With an asset-based loan from Lamna, you’re guaranteed:

  • competitive interest rates
  • a simple and quick application process
  • a discreet loan with no endless paperwork
  • no credit check
  • no effect on your credit score
  • no need to be employed
  • competitive rates and NCR compliance.

Start your application online now or call us on 086 111 2866 for more information about getting a personal loan if you’re retired in South Africa.

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 terms range from a minimum of 3 months to a maximum of 24 months. Apart from the initiation and monthly fees shown in the table, the only additional fee is credit life insurance if the borrower does not have this already.

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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.

Getting a Personal Loan if You’re Retired in South Africa

Apply Online

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Getting a Personal Loan if You’re Retired in South Africa

Apply Online

Hidden

Getting a Personal Loan if You’re Retired in South Africa

Apply Online

Getting a Personal Loan if You’re Retired in South Africa

Apply Online