How a security loan works and why it differs from normal credit

Deciding which option is best if you want to finance a new venture or want money to pay off credit cards can be a daunting task. However, if your credit record includes missed payments, late or partial payments, and/or judgments, it is hardly possible to get credit. A viable option is a security loan.

pawn my car

But what is a security loan?

Unlike a store account that can be opened without putting up assets as collateral, this type of loan is given against an asset’s value. With conventional credit from a bank, such as an overdraft facility or personal loan, factors, such as your credit history, disposable income, and expenses are taken into account.

If you cannot pay back the money borrowed, you do not lose the asset. However, the creditor can take legal action against you to recoup the money borrowed, plus legal costs and interest. In addition, your credit record reflects the missed or non-payments, as well as judgments. The inability to pay back the amount thus leads to an adverse credit record, which can affect your ability to rent a house, find a job, and to get finance for a project.

Why choose our option?

With our security loan option, the asset is pawned. This simply means that the asset is placed in safe storage until the amount borrowed plus interest and fees has been paid in full. Since it is not the conventional credit agreement, your credit record is not affected by the transaction.

You take possession of your vehicle once the amount has been paid. Since it is illegal to pawn and drive your vehicle, the vehicle is safely stored in a facility where it is protected against vandalism, theft, and weather elements. The facility has 24-hour security that includes electric perimeter fencing, access control, and camera surveillance. We even insure it while it is in our possession.

You thus benefit in the following ways:

  • Safe storage of the vehicle and thus the elimination of risks.
  • No adverse effects on your credit record if you are unable to pay.
  • No credit checks.
  • No background checks.
  • You do not have to disclose why you need the money.
  • You can use the money for any purpose.
  • No references are required.
  • Quick and straightforward application process.
  • Get access to cash based on the vehicle’s assessed value.
  • No need for proof of income.
  • The amount you can borrow is not in relation to your disposable income.
  • Get cash paid to your bank account immediately after approval.
  • No lengthy application forms.

How much can you borrow?

The amount is based on the vehicle’s assessed value. You can borrow between R5 000 and R250 000 against a passenger vehicle, boat, trailer, caravan, truck, or motorcycle.

How to apply for the security loan

If your vehicle has been paid in full and you have the original registration papers, then you can apply. You also need your ID document and a valid South African driver’s licence. The application process can be completed within 30 minutes. Apply now by using the online enquiry form and we will call you.

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