Informed decision making is only possible if you have all the required information at hand regarding legitimate pawn loans in Witbank. As an NCR-registered credit provider, we are bound by law to maintain ethical conduct and ensure compliance with legal requirements. One of these requirements entails the safekeeping of the pawned asset.
Why pawn and drive loans in Witbank are risky
The NCR has ruled that the pawn and drive loans are illegal. Any service provider that allows you to drive your vehicle while it has been put up as collateral for the money borrowed is thus already conducting business in non-compliance with the legal requirements. This further puts you at risk of less than desirable actions by such lenders.
What is the alternative?
The correct form of pawning entails the safe and secure storage of the asset. Our facilities have state-of-the-art security, and the vehicle is insured for the repayment period. An agreement is drafted prior to the money paid over to your account. This protects you, showing that the vehicle is yours and that it is merely a loan transaction. We have the responsibility to keep it safe. You can also insure it for the period, adding to your peace of mind. The facility has surveillance cameras, electric perimeter fences, and efficient access control.
Proof of ownership
It is imperative that you have proof of ownership in the form of the original registration papers, your ID, and a valid South African driver’s license. You cannot borrow money against an asset still encumbered by another loan.
Why it doesn’t affect your credit history
If you go to a pawn shop and borrow money against your mobile phone, you do not have to give proof of income. You credit history does not matter. If you decide not to pay back the amount, the phone is kept and sold to recoup the money you borrowed. The transaction comes to an end, and you do not owe the service provider anything. There is no collection fee payable because the asset is already in their possession. They cannot sell the debt to another party. They can only sell the asset. If they fail to recoup the money owed through the sale, it is their loss. If they cannot get it sold, it is still not your problem.
The same applies to our loans against vehicles in Witbank. If you cannot make a payment, you can extend the repayment period if all the interest and fees has been paid up to date. If you cannot pay back the amount borrowed at all, the vehicle is sold to recoup the money borrowed. The agreement comes to an end without it leaving you with an adverse credit record.
How much can you borrow?
The amount you can borrow is based on the assessed value of the vehicle and ranges from R5000 to R250 000. You can settle the loan earlier without penalties.