Immediate loans can offer instant respite from financial stress. However, it’s important to proceed with caution.
Here we consider various options for loans it’s quick to obtain in South Africa, along with a rating of the level of risk they involve.
Credit cards offer a convenient way of covering unexpected expenses. The application process can, however, take several weeks. A poor credit score generally means you won’t qualify for a line of credit.
Credit may be convenient but it can also be expensive. Fail to settle the outstanding balance in full at the end of the month, and you’ll be charged interest at a rate of around 20,50%.
- Credit card risk factor: moderate
Short-term bank loans
The digital era has made it quicker and easier to get a personal bank loan. Despite a noticeable difference in the processing speed, credit history is still a major stumbling block. If you don’t have an above average credit score, you won’t qualify for a bank loan.
These types of immediate loans are not secured by collateral. That means the bank will seize your assets, or get a garnishee order issued against your income, if you don’t make repayments according to the loan agreement.
- Unsecured lending risk factor: high
Access bond loans
When you’re up to date with your housing bond repayments, you can borrow against the funds you’ve already paid back. As the money can be transferred from one account to the other at an ATM, bond-enabled immediate loans are available around the clock.
You’ll have to extend or renegotiate the terms of your home loan, and if you default on your monthly repayments, the bank can repossess your property.
- Access bond loan risk factor: very high
Pay day loans
When you’ve got a steady flow of income, and need extra funds to tide you over until the end of the month, an unsecured pay day loan may seem like a viable option.
Unfortunately, this lending model is fraught with catches. High interest rates, hidden fees, default penalties, and the fact that there are many unregulated lenders operating in this space, make pay day loans a high-risk proposition.
- Pay day loans risk factor: moderate to high
Asset-based loans are secured by high-value items that banks and other traditional lenders do not consider as collateral. If you own an expensive article that’s in good condition – a luxury watch, original painting, period antique, vehicle, or gold, platinum or silver jewellery – you can use it to unlock cash instantly.
There’s no need to submit bank statements or payslips and, as asset-based immediate loans are guaranteed by the appraised value of luxury items, the clients’ credit history and scores are immaterial. Default on the payments, and the only asset at risk is the one put up as security for the loan.
- Asset-based loans risk factor: low
Why opt for an asset-based loan from Lamna?
Lamna is the leading provider of immediate loans in the asset-based space. We accept a wide variety of luxury items as security, and pride ourselves on a 24-hour loan application turnaround time.
Assets are independently appraised, and held in safe-keeping until the end of the loan term. Our interest rates comply with the National Credit Act, we’re registered with the National Credit Regulator and we have physical branches in most major South African cities.
Client borrows R10,000 for 90 days.
Total Cost of Loan
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.