Unsecured Lending in South Africa
Unsecured lending is on of the leading loans service used in South Africa to advance money to South Africans. It is become an increasing factor to take out unsecured loans in South Africa. This does come with considerable risk to loan providers.
In this article we will discuss unsecured lending in South Africa.
What is unsecured lending
Unsecured lending is a loan from R100.00 to R250,000 this type of loan is not secured against your assets like your cars and home.
Banks and credit providers will look at your credit history and affordability before granting an unsecured loans , because the risk is high for these lenders.
Unsecured loans attract higher interest rates and repayments can be higher. Larger number of South Africans take out a number of loans each year for various reasons. mainly to service debt.
Can secure lending be bad or good for me?
We suggest that unsecured lending not be used to service debt. This will only put you further in debt.
You should only take a secured loan if you can afford it and if it will enhance your live.
Do not spend unsecured loans on lavish items you don’t need.
Statistics on secured loans to make an informed decision
“In the first quarter of the year, the Experian Consumer Default Index increased to 3.56% compared to the previous quarter’s index reading of 3.41%. This is also up from 3.24% in the first quarter of 2018.”
(Reference : https://www.sowetanlive.co.za/business/money/2019-06-06-more-consumers-struggling-to-pay-accounts-on-time )
