In this extensive guide, we take you through what it means to take out a loan against your car. We explain why getting a loan from a bank or microlenders in South Africa is difficult and complex, especially for those who have been blacklisted and need a loan urgently, are freelancing or self-employed. We explain the benefits of XCELSIOR’s short term loan solution and break down the entire process of applying for and getting the loan approved step by step, from your initial application to having the vehicle returned. XCELSIOR is here to assist whenever you need a financial boost.
The problem with getting a bank loan
Currently, many South Africans are facing similar problems. They need a fast loan but unfortunately don’t meet the strict bank requirements or have access to the tedious amounts of paperwork that banks require. These include months and months of salary information, proof of residential address, good credit history and many other qualifications. This will lead to thousand’s getting denied their loan applications.
Being self-employed or working as a freelancer means having the freedom to decide how to manage your business. However, there are also some downsides. Self employed workers face even more problems when obtaining a loan and will face even stricter lending criteria than salaried workers. Salaried workers with good credit history are always favoured by banks and traditional lenders.
Furthermore, If your spouse is under debt review or is deemed insolvent, the loan application is also at risk of being rejected. There will also most likely be a wait of several days to find out whether the loan has been accepted or not.
The reality of it all is that millions of consumers in South Africa have poor credit histories and have been blacklisted. However Xcelsior offers loans for blacklisted people The XCELSIOR team understands that sometimes life can present unexpected expenses, emergencies and the need for some assistance. It is during these times that it is necessary to have access to quick and easy loans.
The benefits of short term loans against your car
Loans for blacklisted people: no credit checks
With XCELSIOR, even if you have been previously blacklisted this won’t affect your loan application. Pawning a vehicle for cash does not involve any credit checks, making it an easier way to access a short-term credit agreement than an overdraft.
There is no proof of income needed to get the loan
As short-term loans against cars do not involve creditworthiness assessments, applicants do not need proof of income. There is no need to prove employment, provide bank statements, pass an affordability check, or have a credit or background check carried out. While this makes the loan process a great deal simpler for you, it is always advised that you make sure that you can afford the loan’s monthly repayments before going ahead.
The asset is used as the security
Unlike with other short-term loans requiring income or other forms of security, the car, bakkie, and several other movable assets are used as security. The car is secured safely, an additional benefits.
Your loan remains private – ie no questions asked
Unlike with banks, there will be no questions asked regarding what the money is going to be used for.
There is no effect on the applicant’s credit record
Since the vehicle forms the security for the entire amount, the loan doesn’t affect the credit standing of the applicant. Even if the person or business cannot repay the amount and the vehicle is sold to recoup the amount owed, it doesn’t affect their credit standing.
Fast and easy application process
The applicant just needs to complete the online enquiry form. A consultant will then get in touch with the applicant to explain the process. The entire process is quick and easy and you can receive the money just hours after your loan has been approved.
The requirements for getting a loan against cars: Who qualifies
With us, you can borrow anything from R5000 to R250 000 against your vehicle. We assess the value of the vehicle and offer you a loan of up to 45% of the vehicle’s value. This is something to consider, as you should only ever borrow the loan amount that you actually need in order to avoid getting into unnecessary debt.
Whilst owning a car is step one, there are a few more necessary requirements in order for your loan to be approved and processed. Let’s go through what you need in order to qualify.
- You must be a South African citizen.
- The vehicle must be paid off in full and registered in your name. You cannot pawn a vehicle that is in a family member’s name.
- Your vehicle should be in good driving condition.
The vehicle must be assessed prior to the loan being approved so that a loan amount can be agreed upon.
What it means to own a vehicle fully
This means that the vehicle is no longer under finance. If you lease the vehicle or still pay the bank monthly, then the bank still owns the vehicle. To qualify to get a loan against your car quickly, you must have the original registration papers, and the vehicle must be paid in full. If you meet this requirement, then you are only a few steps away from quickly getting a loan against your car, bakkie, truck, trailer, or caravan. The vehicle can also be owned by your company.
Which types of vehicles qualify?
Cars, caravans, trailers, bakkies, motorcycles and even some watercraft vehicles like boats and jet skis.
What you need (other than a car):
If the loan is against a car you own:
- You need a valid drivers licence
- South African identity document or passport
- Original registration papers for the vehicle
- A bank account in which to transfer the loan
For loans against vehicles registered in company names, the requirements are:
- Copy of ID for each of the directors or members
- Copy of the company or close corporation registration papers
- Memorandum of incorporation
- Original registration papers of the vehicle as proof of ownership
We recommend reading our frequently asked questions for more information regarding the requirements.
The XCELSIOR loan application process:
The loan application process takes around 30 minutes to an hour to complete and you can have the cash in your account within 30 minutes after your application has been approved.
The loan application process is straightforward:
- Complete the online form or SMS “Quick Cash” to 41235. A consultant will call you back to explain everything.
- Provide the required information and documentation.
- Your vehicle will be assessed at your nearest branch
- A loan offer is made based on the trade value and the assessment
- If your application is approved and you agree to the amount, we pay the cash into your account.
- The vehicle is placed in safe storage.
The process after receiving the loan:
What exactly happens to the vehicle
You can drive your car to one of our six locations. From here, we will transport it by truck to a secure storage facility. We can also collect the car from your home. The vehicle is stored at the storage facility for the duration of the agreement.
The vehicle storage facility
We have secure facilities where we store pawned vehicles. The storage facility is incredibly safe and has 24-hour access control. The facilities also have constant camera surveillance and electric perimeter fencing. Moreover, the vehicle will be protected against theft, vandalism, use, and weather elements for the entire period.
In addition, we take out insurance on the vehicle for the duration of the repayment period. With the vehicle being the security for the credit, we have just as much interest as you in keeping it safe. To this end, we can guarantee that it will not be used for the entire repayment period.
What happens if you cannot pay back the loan?
If you default on your loan repayments, our policy is to sell the vehicle to cover the cost of the loan. However, if the vehicle is sold for more than the outstanding loan amount, the balance will be paid over into your account. We always put our clients first.
What happens after the loan has been paid back
You can repay the amount earlier, and should you notice that you will not be able to make the instalment in time, get in touch with our consultants to arrange for an extension on the repayment period. You will be required to pay the interest and fees up to date.
Once the applicant has repaid the loan in full, the vehicle is returned in the exact order as originally received.
The safety of using XCELSIOR
Applying for loans with XCELSIOR is completely safe and easy. We are a registered credit provider and comply with both the National Credit Act and the Consumer Act. We offer our clients absolute discretion and will not provide your details to any third parties without your consent.
At XCELSIOR we have your best interests at heart and will offer you a professional and dedicated service at all times.
With over 15 years of combined experience in the industry our management team is able to offer professional loan assistance, advice and guidance. We have noticed a variety of shortcomings when it comes to the loan industry and what it has to offer, and we are using these shortcomings to change the ways in which loans are conducted in the country.