Everybody finds themselves in a position where they need more cash resources than they currently possess. No matter how much you earn, you will inevitably get to a point in your life where you need to get hold of some cash. If you cannot get hold of the money by borrowing from family or friends, the obvious thing to do would be to borrow money from a bank or other financial services provider. If you are in a hurry, however, this could be a major headache as there are various disadvantages to applying for a loan from a bank or similar institution.
Disadvantages of Typical Bank Loans
- Time: Applying for a loan at the usual financial institutions can take a very long time! Not only does the application take ages to fill in and the documentation ages to get together, the approval process also takes time. The application has to be passed from person to person and go through various checks before anyone will approve the application. Even after approval it may take longer than expected for the money to finally become available for use.
- Paperwork: Normally reams of paperwork have to be filled in, various pieces of original documentation must be provided, certified copies of other documents and in some cases even affidavits and police clearances have to be obtained! Administration fees are also charged.
- Credit ratings: Banks always check your credit rating and if there are any outstanding costs on record, they will usually refuse to lend you the money you require.
- Blacklisting: If you have been blacklisted, you may as well forget about applying for a loan from a financial institution as they will almost certainly refuse your application. It does not even matter whether you are in the process of contesting charges, they will still not loan you money unless the blacklisting has been removed. In some cases, they will even refuse if you have previously been blacklisted, but have since been removed from the list.
- Expensive: Bank loans tend to have very high interest rates, especially in South Africa, and you may end up paying back significantly more than you borrowed, especially if the loan is considered short term. Longer term loans tend to have better interest rates, but you may end up paying an early redemption penalty if you repay the loan before the repayment period has completed.
- Loss of total collateral: If you default on your loan the financial institution will reclaim or repossess any assets used as collateral against the loan. These assets will then be sold, often at a fraction of its value, to redeem the outstanding charges. In addition to this, if a profit was made on the asset, you will not be repaid the excess amount! This means that even if the bank sells your asset for more than the total outstanding amount of the loan, that they will claim the profit and you will lose out.
What’s the Alternative to a Bank Loan?
The XCELSIOR loans are structured to be secured against your motorised assets such as a motor vehicle, bakkie, motorbike, or panel van – we even accept jet-ski’s as collateral! The process is very simple – we keep the asset in our possession while you repay your loan and when your loan is repaid, we return your asset to you.
Advantages of XCELSIOR Loans
- Easy: Our application process is very easy and consists of a few simple steps only. The application is done online, so there will be no paperwork to fill in!
- Convenient: You may apply online, visit one of our offices in person, or one of our consultants will meet you at a venue of your choice. You can even do the application in the comfort of your own home! No transport costs or long journeys, we can come to you!
- Fast: Our process is extremely fast – from application to approval to the money being in your account could take less than one hour! If all documentation is ready and available, you may have access to your money in as little as 30 minutes. No other financial institution can do that for you!
- Assets: Your asset it returned to you the moment your loan is repaid. Should you default on your loan, we will arrange a more suitable repayment plan. If you are still unable to repay the loan, we may have to sell your asset to redeem the loan, but any amounts in excess of the repayment amount will be repaid to you.
- Transparent: We will explain all charges and interest to you in a clear and concise manner to ensure that you completely understand all the conditions of the loan. This ensures that there are no charges or costs that you are unprepared for.
You can now apply for a fast, easy loan in a few easy steps! Contact us online or call us for more information.