Whenever you want to avail yourself of any service that costs you a significant amount of money, you should check out the best deals you can get. You’ll be surprised that with just a little research on how much money you can save.
It’s the same with borrowing money. This is why, if you are a South African, you should compare the cheapest loan interest rates in South Africa to establish which one suits you best.
The first thing you need to do when thinking about taking out a loan is to understand what type of loan will suit your personal situation. Different types of loans vary in cost according to type and cheapness. A good place to start your research into product availability and prices is this article from Wonga.
What to look for in a loan provider
The critical thing to take into account with any loan you are considering is exactly what the terms and conditions are. You must, for example, be fully aware of what your repayments will be, what the duration of the loan is, and when the repayments will be due. You also need to know how much interest you will be paying.
Establishing that the lender is legitimate is something you must do. There are plenty of so-called loan sharks around. In South Africa, many go under the category of loan merchants called “Mashonisas.” They are popular with many people because the proofs they require from applicants for repayment purposes are a lot less formal than banks etc.
While some mashionisas may be relatively user-friendly, many are not. This is particularly true if you miss or are late making repayments. You will be put under pressure and may even find yourself under threat of violence.
Are they NCR registered?
Mashionisas are not registered. Therefore, the first thing you need to assure yourself of is that the lender you are researching carries full NCR registration. The initials NCR stand for National Credit Regulator. They are the official body that regulates the credit industry here in South Africa. Any loan provider with an NCR certificate is completely legitimate.
Legitimacy is vital, but it is only a starting point. There are of course a whole host of NCR approved loan providers out there. They all charge different rates and have various fees. This is why once you have compiled a list of NCR registered companies, you must then go through it to compare the cheapest loan interest rates in South Africa.
Using loan comparison sites
Knowing where to start your research exercise can be quite tricky. There are so many loan providers to choose from. Using comparison sites can be useful. When you spot a loan provider on the list that looks of interest, you simply click on the relevant button to begin the loan process. However, be cautious when using some comparison sites as they don’t always show you the best deal first. These comparison sites work on a commission basis (i.e. the loan companies pay the comparison sites to appear on their listings, often the provider who pays the most money appears high on their comparison results).
Remember to check any loan provider’s terms and be certain that you can afford the repayments before you sign on the dotted line. Borrowing money is something that we all need to do at some stage in our lives. Just make sure that you borrow responsibly.