What Types of Loans are a Good Solution for South African Lenders

What Types of Loans are a Good Solution for South African Lenders with Our Current Economy?

It comes as no real surprise that according to Business Tech, South Africa is ranked as the top country in the world for taking out loans. Many South African’s are faced with a less than a festive year end in 2015, as a result of a struggling economy, joblessness, weak currency, hiking interest rates and fuel prices that continuously fluctuate.

The World Bank recently released statistics to show that in South Africa, 86% of adults successfully applied for loans between 2013 and 2014. Unfortunately, the status of loans taken out in the country is dismal. Many of the loan applicants fall behind in payments and even more are under debt review or seeking out debt rehabilitation. With this in mind, one is forced to consider what type of loans these individuals are taking out and how they could have avoided such a negative outcome.

At XCELSIOR, we understand the statistics when it comes to loans in the country and offer an alternative to those who need financial aid, but don’t want to risk becoming even more indebted in the process. That’s the nature of loans unfortunately, but the loan model itself can in fact make all of the difference. The trick is to choose a loan model that offers a convenient and reasonable way of paying the loan back. The loan should also have reasonable safety mechanisms in place to ensure that applicants don’t become blacklisted or similar, should something go wrong and the loan cannot be repaid. What is the solution? Pawn loans are the solution. These types of loans offer a variety of perks for the average South African in need of a cash advance.

The benefits:

  • They are easier to qualify for, as they are secured with an asset / something of value. This is known as the collateral item.
  • In the event of the loan not being repaid, the collateral item is sold to cover expenses and any additional profit is paid back to you. This means that there’s no risk of being blacklisted of things don’t go as planned.
  • There are no credit checks or affordability checks to endure, which means that you can even obtain a pawn loan if you are blacklisted or unemployed.
  • Paperwork is kept to a minimum, and the application process is quick and easy. No need to wait around for a lengthy approval process.

Of course, there are terms and conditions that you must meet with in order to qualify for these types of loans. You must be over 18 years of age, be a South African resident and have a collateral item that is paid off and in your name. At XCELSIOR, we accept various types of vehicles as collateral – other pawn lenders might have different requirements and terms.

Does it sound like pawn loans are the way to financial freedom for you? Why not take the time to apply for a loan on our website? If all goes to plan, you can take out a loan of up to 50% of the assessed value of your vehicle, the vehicle will be stored at our premises and you will be paid out on the same day, or next business day. It’s that easy! What are you waiting for?