As you probably already know, finding a loan in South Africa when you are blacklisted is nearly impossible. Major financial institutions and popular creditors do not lend funds to individuals who are in debt or have been placed under any administration of some sort. There are, however, some private lenders who offer loans for blacklisted people.
What does it Mean to be Blacklisted?
Many South Africans are living in distress due to the current financial climate. Missed payments, unfortunately, seem to be the norm in a country that is struggling to make it through the pandemic. Many individuals are aware that they have been blacklisted. Some others, on the other hand, only discover it when they try to apply for a home loan or are about to open an account at their favourite clothing store. But what does being blacklisted entail?
Being labelled as a blacklisted simply means that financial institutions consider you a risk. Nevertheless, the term is actually deceiving, as there is no such thing as a “black list”. In South Africa, people are generally banned from borrowing money due to failure to consolidate and repay debt. The question now is; where can one find loans for blacklisted people? Read on.
Urgent Loans for Blacklisted People
Being blacklisted is nothing to be ashamed of, as many professionals have found themselves in the same situation. However, it will stop you from getting credit from major banks and lenders to solve the emergencies that arise. If you need to borrow money to make ends meet, here are the two types of loans for blacklisted people you can apply for:
- Payday Loans for Blacklisted: Some private companies offer urgent loans for blacklisted people in South Africa. These unsecured, personal loans often come with difficult terms and conditions and quite high interest rates. Therefore, borrowing large amounts is not recommended.
- Secured loans: the easiest ones to obtain. In this case, the lender accepts an asset that the borrower owns as security that they will pay back the debt. You can obtain these loans against your car, house, or any other possession. Nevertheless, bear in mind that you risk losing your property if you are unable to consolidate your debt on time.
These loans for blacklisted people can help you overcome economic difficulties. However, it is always better to actively pay your debt so you get yourself removed from the so-called “black list” and qualify for regular loans again. In South Africa, everyone is entitled to one and full free credit report per year. Additionally, some companies can provide you with account status, credit score and credit summary for a small fee.
Where to Find Loans for Blacklisted People in South Africa
Thousands of struggling South Africans are looking for companies that offer payday loans for blacklisted people. Below are the most sought-after creditors in the country:
PEP Loans for Blacklisted
Many loan seekers who have been denied credit from major financial institutions are applying for PEP loans for blacklisted. However, the actual lender (Capfin Loans) is not likely to approve your request if you have bad credit score or are under debt review. Therefore, it’s best to turn to other creditors to borrow money.
Capitec Loans for Blacklisted
Unfortunately, there are no loans for blacklisted at Capitec specifically. That being said, you may want to consider other creditors that are willing to assist those individuals who are struggling to borrow money from major lenders. Below are some of the companies that currently offer loans for blacklisted people in South Africa:
- Lime24 Loans
- Wonga Loans
- Mr. Cash Loans
- Fasta Loans
- Payday Gorilla
- Yebo Cash
- Supa Smart Loans
These loans for blacklisted people can help South Africans pay their debt during these difficult times. The easiest way to learn if you qualify for any of them is to submit your application and wait for the outcome.
However, before sending your details through, make sure the lenders you choose are registered under the National Credit Regulator. Remember to compare interest rates and do not sign any documents you do not fully understand. The so-called “shark loans” are known to prey on desperate, blacklisted loan seekers.