When times are tough and cash is tight, finding a loan can be challenging. Finding affordable loans can be even more difficult. In South Africa there are various regulations in place that make it difficult for just anyone to obtain a loan. An applicant has to meet with certain criteria in order to be approved for a loan and even then, you cannot be 100% certain that you will get it. Different financial institutions will offer different interest rates, which can affect the affordability of the loan on offer. It is important to check what the final loan amount will be, including interest, and to enquire what your monthly repayments will be.
Those who want to avoid all the red tape and hassles of loan applications can opt to take out a collateral-based loan. This type of loan is ideal for those who are looking for a short term loan and don’t want to undergo all the background and credit checks. Such a loan does not require you to be permanently employed and you will find that the repayment agreement is simple and most often affordable.
How does such a loan work?
Well, firstly you will need to apply for it by providing the financial institution with your personal particulars and the details of the item that you wish to use as collateral. At XCELSIOR, we only accept vehicles such as cars, bakkies, LDVs, motorbikes, jet skis and similar. The vehicle is assessed to ascertain its value and then a loan amount of up to 50% of the vehicle’s value can be provided. What makes our options even more affordable is that you do not need to loan the entire 50% value of your vehicle. You can decide how much you require as long as it fits into our maximum and minimum loan amounts.
Like most loan companies, we have minimum and maximum loan amounts that we can offer our clients. The minimum amount that you can loan is R5,000 and the maximum is R500,000. For this reason, it is important to ensure that your intended collateral vehicle is in good condition and is also driveable. If you agree to the loan terms and the amount available, the loan can be activated immediately and the amount paid into your account.
The vehicle will be sent to our safe and secure storage facilities for safe keeping. You can choose to deliver the vehicle yourself, or one of our team members will take it for you. If you are worried about the safekeeping of your vehicle, don’t be. At XCELSIOR, we offer 24 hour security at our storage facility and your vehicle will not be driven or used for the duration of your contract.
When it comes to affordability, you will find that we are extremely reasonable when it comes to interest rate. We also allow our clients to choose whether they would like to repay their loan via monthly payments or if they would like to settle the loan amount at the end of the contract with one lump sum.
The entire loan application process is quick and easy with us at XCELSIOR. Our consultants are well-versed in the industry and will ensure that your application is as painless as possible. You can expect for your loan to be paid out on the same day, or the very next business day, depending on when you make your application and how available you are for vehicle assessment.
If you would like to learn more about affordable loans and how collateral loans work, contact us at XCELSIOR via email or telephone today. We will provide you with enough information and guidance to get you back on the road to financial freedom once more.
