Many of us find we may need a little extra cash from time to time, be it for repairs to your vehicle or for something as unforeseen as a funeral. Either way, micro loans in Durban provide the ideal opportunity for people to acquire quick cash, repayable over a short period of time. While acquiring a micro loan may seem simple, it is important to gain some insight into this credit option. This piece will be geared toward helping you understand micro loans a bit better.
Micro loans differ from loans offered by traditional banks in that they are generally unsecured loans. This means you do not run the risk of losing your personal assets, should you be unable to pay your instalments. Micro loans, as the name suggests, work with much smaller amounts of money, thus making repayments more ‘affordable’, in spite of the higher interest rates. The rates are higher in relation to the higher risk which the lender faces, as it’s an unsecured loan and your credit history is not strictly a deal-breaker.
As highlighted above, another feature that sets micro loans apart from traditional bank lending is the fact that you typically don’t need an unblemished credit rating – giving rise to blacklisted loans. As long as your credit history is not littered with defaults, blacklistings and your prior defaults can be explained you should have little trouble in attaining your cash.
Applying for these loans is relatively easy too. The only documents you need to produce for a loan of up to R15 000 are your ID document, proof of residence, your payslip and three month’s bank statements. After applying, your affordability together with other basic criteria is assessed. Once approved, the money will generally only take around two or three day’s maximum, to reflect in your account. You may even find that the cash will be deposited on the day of your application and approval.
Finding reputable companies that provide micro loans is no longer like finding a needle in a haystack. Simply log onto the internet and browse for recognised and experienced lenders, particularly those specialising in personal loans. There are many micro loan facilitators out there; however, there are also many scammers – so pay extra attention to who you engage! Even traditional banks are realising that specialised loans for this category of “micro loan borrowers” are needed. As such more of them are now also offering products geared towards the need for short-term cash.
More and more people are turning to these micro loans when in need of a short-term cash solution, and the best part is you aren’t prejudiced by yesterday’s mistakes in your credit history. MBC Finance can help you efficiently secure the best micro loan options available, in addition to answering all your queries. Call today!