3 Factors to Consider before Taking out a Cash Loan – What to KnowMarch 19, 2020
Thanks to the immense range of benefits that have taken place in the global lending industry, South African borrowers now have an abundance of opportunities to help their financial obligations.
Regardless of whether you’ve got a medical emergency, a gadget that you want to get, or a dental appointment that has to be scheduled, there will always be a trusty loan provider in South Africa that can easily take care of your financial needs. With the sheer availability and flexibility of various cash loans that consumers today can resort to, it’s safe to say that taking out a loan for your every need is as convenient and quick as riding the bus.
Why cash loans are an option worth availing of
Today, cash loans are regarded as the needed help for any type of dire financial situation because of their flexibility and availability. With various options built to fulfil different needs and remedy even the most severe of financial situations, it’s no secret that cash loans are a solution that any South African can depend on.
A few considerations to make before getting a cash loan
Now, before you even consider the idea of taking out a loan from a trusted lender—such as Hoopla Loans—it is vital to first understand that there are several considerations that need to be made.
Secured vs unsecured: which option is better for you?
When you first take out a cash loan, you’ll quickly realise that there are several choices that have to be made—one of them being the common “secured or unsecured” dilemma.
Generally speaking, cash loans come in either a secured or an unsecured form that has much to do with providing collateral as a form of security on the lender’s part. Let’s go over both types of cash loans in greater detail:
- Secured cash loans: Secured cash loans entail giving over a particular type of collateral—whether a car, house, ring, or necklace—that is an exact match in value for the total amount you’re applying for.
- Unsecured cash loans: With secured cash loans, you won’t have to provide a decent and an apt-valued collateral, but there’s also a risk of higher interest rates and more rigorous repayment policies.
Going modern or staying traditional
Once you’ve taken care of the entire secured or unsecured dillemma, the next consideration that you’ll have to make is choosing between the traditional or modern method of borrowing. When you take out a cash loan by using a modern method, all you’ll need to do is apply for the loan online––through the phone, or personally contacting the office of a loan provider. Seeking the traditional method, on the other hand, entails going through the standard operating procedures of getting a cash loan by filling out forms and consulting with a lender throughout the process.
Working numbers in your favour
Another important aspect of taking out a cash loan is the entire concept of interest rates and how they affect your experience with taking out the loan itself. Depending on the situation at hand, the total amount that you’ve applied for, and the discretion of the loan provider, your interest rate can make the repayment experience difficult or easy. This is why you must make sure to read the fine print of the loan before proceeding.
Taking out a cash loan is a widely-available opportunity for any South African in need of a financial boost. Nevertheless, it’s essential that you take the right factors into account before handing over your documents and filling out the forms!
If you are looking for financial assistance in the form of cash loans in South Africa, get in touch with us today to see how we can help you!