FAQ on Micro Loans for Blacklisted in South Africa
Posted by admin on
Numerous small independent lenders offer micro loans for blacklisted in South Africa, even though they are not available from major banks like Nedbank and Standard Bank. You should certainly learn as much as possible about them before applying for one.
How much money can you borrow?
The micro loans get their name from the fact that they have small principal amounts. Usually, you can borrow up to R3000 even though a few lenders have set their maximum loan amount at R8000. The smallest sum which you can borrow is typically R500, although some lenders offer even R250.
What is the loan term?
According to the National Credit Act, the maximum term on such loans is 6 months. However, they typically have to be repaid in 1 month or 3 months maximum.
What is the cost of the loan?
The interest rate is higher than that for traditional loans, but you can shop around to save on it. When the interest is charged daily instead of monthly and this will result in higher cost. Typically, lenders charge an initiation fee plus a monthly service fee.
The micro loans for blacklisted in South Africa are effective solutions to cash emergencies.