The year 2020 will go down in history for the worldwide health and economic crisis. Thousands of businesses have closed doors and many people have lost their jobs. Many more have been blacklisted, making it near impossible for them to get loans from banks.
You may be one of these persons who are experiencing financial distress because of the economic crisis. In addition, you may have joined the ranks of blacklisted consumers and are therefore unable to secure funds and start fresh or rebuild your business.
If so, there is still a solution. Loans against vehicles do not work the same as microloans. You do not need proof of income. Whether you have a perfect credit record or have been blacklisted, you can make use of this solution.
How does it work?
Your vehicle is the security for the loan. The vehicle value is assessed and a loan amount is offered accordingly. With this solution, you can borrow between R5000 and R250 000. The amount is not based on your income or risk profile. Instead, it is based on the assessed trade value of the vehicle. Once paid off, the vehicle is returned to you.
What do you need to apply?
You only need a valid South African driver’s licence, your South African ID or passport, and the original registration papers of the vehicle. If the vehicle is registered in your business’ name, then you will need the original vehicle registration document, the company registration documents, and the ID documents of the directors.
How long before the money is paid?
Unlike with bank loans, the application process does not involve credit background checks. As such, it does not matter if you are self-employed or unemployed. With no need for income and expense statements, proof of income, or credit checks, the application is straightforward. It can be completed within 30 minutes. Once the assessment has been done and the loan approved, the money is immediately paid to your bank account.
What happens to the vehicle?
Similar to a pawn transaction where the asset used as collateral is placed in safe storage, the vehicle is placed in a highly secure and safe storage space for the duration of the agreement. We insure the asset, but you are welcome to also insure it. The storage facility has camera surveillance, electric perimeter fencing, access control, and 24-hour monitoring. The car is protected against weather elements and is not driven for the entire agreement period. The safe storage thus protects the asset against wear and tear as well.
What about defaults on payments?
It is a pawn agreement. As such, non-payment does not affect your credit score. If you find that you cannot make a payment for the particular month at the agreed date, get in touch with our consultants to make an arrangement for an extension of the payback period. If all interest is paid up to date, you can extend the payback period. If you cannot pay back the amount, the vehicle is sold to recoup the money you borrowed. The agreement comes to an end without it reflecting on your credit record.
Where to apply
Blacklisted or in good credit standing, we make it easy for you to access loans against vehicles. Complete the online enquiry form for more information on how to apply.