Choosing between Loans for Blacklisted Based on Your Needs
Posted by financial advisor on
There are millions of blacklisted individuals in South Africa and there is a large and ever-growing financial market niche catering to their needs. As a result, you can select from a huge variety of loans for blacklisted. Take a closer look at the pros and cons of the main options and what they can be used for to decide which one is right for you.
Pros and Cons: Loans for Blacklisted
The micro loans for blacklisted are usually no bigger than R3000 and can be as small as R250. They are repaid on your next day. They maximum term is usually around 35 to 40 days.
These are useful for covering emergency expenses and for filling gaps in your monthly budget. Just keep in mind that such a loan will take away a chunk of your next month's budget. If you use this option every month, you can get into serious debt eventually.
The personal credit facilities for blacklisted individuals can have a term of up to ten years. You can borrow tens of thousands of rand. However, you can expect the interest to be quite high given your previous debt repayment issues. Such loans should be used for making major purchases which are absolutely necessary. For instance, you can use such a loan to pay for the education of your child.
The secured credit products for blacklisted require the placement of collateral but this actually lowers the interest rate. If you want to buy a car, such a loan will be the best option.
Even though loans for blacklisted are not available from major banks like FNB and Nedbank, you can get them from numerous smaller lenders.