How to Find the Best Personal Loan Lender in South Africa – Our Guide

Jan 23, 2020

Most borrowers look at interest rates first before considering other factors. However, diligent borrowers must know that the interest rate is not the only factor that they must investigate. To serve as a guide while searching where to apply for a loan, here are a few tips on how to find the best personal loan lender in South Africa:

1. Find a lender that offers reasonable interest rates

An essential factor in choosing a South African lender for a personal loan is the interest rates. Interest rates must be reasonable enough to cover the loan expenses of the lending facility. It is considered as the necessary cost of availing the convenience of having a ready amount of cash. 

Generally, an interest rate is computed depending on the credit score of the borrower. In choosing the best personal loan lender, it is best to compare and benchmark the interest rates from different companies. For those seeking fast approval, there are lending companies that offer the chance to loan without the need for securing the credit score of the borrower. 

2. Find a lender that offers flexible repayment terms

Among the different loan offers from companies, choose a lender that allows flexible repayment terms. Borrowers must not look at low-interest rates alone without looking at repayment terms. The low interests might end up being useless if the borrower is unable to manage the repayment schedule. 

Some lenders offer convenient terms that spread the equated monthly instalments or EMI. Some options allow the borrower to withdraw a loan amount only when the need arises. Finding a way to customize the repayment schedule to fit one’s needs is the best way to pay off the loan smoothly, without risk of foreclosure fees or penalty fees.

3. Find a lender that offers the right amount of loan

There are several lending facilities available in South Africa, and each one has different loan packages and products. One of the factors for choosing the right lender to suit one’s needs is to check the amount of loan that the lending facility offers. The loan amount must be substantial enough to realize the monetary needs of the borrower. 

For example, if the borrower needs R10,000 for a health emergency, he must forego an offer of R5,000 even though the loan has a lower interest rate. The loan amount must cover the whole amount of R10,000 instead of obtaining two loans with different amounts and interest rates. The latter situation may cause confusion in terms of repayment and may also prove to be more costly in the long run.

4. Find a lender that has minimal charges and no hidden costs

Borrowers must pay extra attention to various fees charged by funding facilities, such as late payment charges, loan cancellation charges, and processing fees. Choose only a funding facility that has minimal charges and no hidden costs. Most banks have processing fees as well as service tax that they add on top of the monthly payment of the interest rate. Meanwhile, there are available funding facilities outside of a bank, such as online credit centres that may also charge additional processing fees and taxes.

Conclusion

As a great alternative from banks that have a lengthy application process with many add-on processing fees, choose other facilities that offer fast and reliable credit assistance. Hoopla Loans is a hassle-free online loan broker that offers personal cash loans in South Africa in the most convenient way possible.