If you’re looking for a loan in Cape Town, you’ll have a bewildering array of options to choose from. Personal bank loans, pay day loans, debt consolidation loans and lines of credit are all readily available.
Nearly all these options are unsecured lending products. Accordingly, you’ll need to submit bank statements, your employment and credit records and, in the case of a business loan, the business financials to qualify for a loan. Certain loan types, such as pay day loans, are also risky and often associated with very high interest rates and a range of hidden costs.
For those own high-value items, there’s a quicker and more convenient way of borrowing money over the short term. Consider an asset-based loan.
Why an asset-based loan in Cape Town?
An asset-based loan allows you to leverage the value of luxury items, such as jewellery, high-end watches, art works and collectible coins, to improve liquidity.
It’s the ideal lending model for start-ups and entrepreneurs in Cape Town who need a cash injection to get their enterprises up and running. It’s also a safe, reliable and convenient way of borrowing money to pay for unexpected expenses.
As your asset acts as collateral for the loan, there’s no cumbersome paperwork to submit, and the lender does not exchange information with any credit bureau or agency.
The loan turnaround time is quick, and provided your asset is in good condition, well maintained, and backed by proof of ownership, you are guaranteed the funds.
Risks to consider when getting a loan in Cape Town
Along with loan sharks, scam artists and fly-by-night operators, one of the biggest potential risks to consider when applying for a loan in Cape Town is the penalties that may be imposed if you default on a loan.
When you fail to pay back the borrowed money as per the loan agreement, you can be handed over for collection, blacklisted at the credit bureaux, and even have a garnish order on your salary.
Some lenders charge punitively high penalties and interest on the outstanding amount. Others demand payment of the loan in full, and may attempt to seize your assets if you’re unable to meet their demands.
In the case of an asset-based loan, the risk is limited to the asset you’ve supplied as collateral – so this type of loan doesn’t put your and your family’s other possessions and income at risk.
How to get an asset-based loan in Cape Town
Securing an asset-based loan in Cape Town is an easy three-step process:
- Complete an application form online and accept an initial offer of a loan based on the information you have supplied on your asset.
- Set up an appointment at the loan provider’s offices to have the asset appraised, and handed over for safekeeping for the duration of the loan term.
- Sign the agreement, submit the required documents, and wait as the funds are transferred into your bank account.
Why choose Lamna?
Lamna is the leading asset-based lender in South Africa. We offer instant cash loans based on the appraised value of luxury assets that banks and other financial institutions will not consider – such as antiques, original artworks, gold and silver jewellery, boats, motorbikes and cars.
We have physical branches across the country, including two branches in Cape Town, and are accredited with the Financial Services Board and the National Credit Regulator. Our interest rates comply with the National Credit Act, and our services are transparent and discreet.
For more information about getting a loan in Cape Town, 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.