How to Get a Loan if you Are Blacklisted
Posted by financial advisor on
The fact that you are blacklisted does not mean that you cannot obtain a loan. Many people are in this situation right now due to the recent global economic crisis which affected South Africans quite badly. However, you should not despair. You can get the money which you need to pay your bills and any emergency expenses.
How difficult is it to obtain a loan if you are blacklisted?
This is not going to be easy given the fact that you have had financial problems in the past. If you can afford to place collateral, you will have higher chances of getting approved for credit, however. The secured loans are typically easier to get and may come with lower interest. The collateral which can be placed can be any asset of value including a car, a boat or a house. Despite the benefits of these loans, you have to take into account the fact that you will lose the asset in case you do not make timely monthly payments. That is why you should be extra careful with this type of credit. In general, unsecured loans are available to blacklisted individuals as well. They are more expensive, but you will not have to risk losing a valuable asset.
Unsecured personal loans for blacklisted people are offered by many different lenders in South Africa. These loans are available without the placing of an asset as a surety. All people with bad credit, loan default, garnishees and judgements against their name can quality. No matter what the black points on your credit record are and how many they are, you still have a chance as long as you have improved.
You should get a good understanding of unsecured loans before you apply for one. These are loans which are granted without the borrower having to put an asset down. If the borrower defaults on the loan, the lender will not have the automatic right to take an asset away from him. These loans are harder, but not impossible to qualify for. Another important thing which you should know about them is that they come with higher interest rates due to the higher risk assumed by the lender.
Given this, it makes sense for you to shop around and compare the different rates offered by different lenders to find the most affordable product. The lenders that offer loans for blacklisted are typically smaller companies which specialise in this type of credit product. You will most certainly get rejected if you apply for a loan to a conventional bank. That is why you should focus on these lenders. Just make sure that the lender that you choose is registered and adheres to all rules and regulations in South Africa. Watch out for loan sharks as they usually attract blacklisted people by offering easily accessible loans, which are actually extremely expensive.
You can apply for a loan for blacklisted online by filling out and submitting an application form. In order to apply for a loan, you will need to provide a number of documents as well. These include a copy of your ID, bank account statements for several months back, typically three, proof of employment income and proof of address. These are usually sent via fax or email. Make sure that all documents are intact to avoid delays.