Don't fall for loan scams

Taking out a loan is an important financial decision that will have repercussions for your future cash flow. If you're looking for a loan, the most important thing to consider is the best loan interest rates.

Many people today struggle with making their paycheck stretch long enough to last until the next payday.  What happens when you have too much month at the end of your salary? Many people might consider an instant loan – however, it's important to be wary of loan scams. Loan sharks prey on people who ignore the loan terms and rates because they are so desperate for cash. 

Look for the best loan interest rates

Loan sharks charge such high-interest rates that paying back the loan on time becomes very difficult. Some interest rates are as high as 40 to 50% and there are additional fees if you fail to pay back the loan on time.  These incredibly high-interest rates will keep the borrower in an ongoing cycle of debt — forever needing more loans to meet their obligations.  It sounds strange that people would agree to an arrangement like this, but so many do. Not knowing their options, or if they even qualify for a personal loan from a reputable financial institution, coupled with a desperate situation, leads many people into the loan shark trap.

There is very little recourse for loan sharks who don't play by the rules. However, there are some measures in place for maximum loan rates that will protect you.  Typically, a 27.5% annual rate is the highest that providers can charge. So, if you are being charged more than that, you can report it to www.ncr.org.za.

For the best loans, go to an accredited loan provider

If you're looking for the best loans, it's wise to seek an accredited loan provider, such as a bank. This ensures that the loans and services you receive are regulated and fair. It also ensures that you have access to attractive rates and repayment options, as well as flexibility. Having the best loan interest rates can really help you afford the loan, pay it off and move on, possibly even using the loan to improve your financial standing by improving your credit score.

Dealing with an accredited loan provider can provide you with piece of mind, along with the flexibility to adapt your payment options during tough times. 

African Bank's online loan application

African Bank's personal loans of up to R250 000 give you more value than you expect. You can choose to repay your loan over 7 to 72 months. With a fixed interest rate, you know exactly how much you’ll be paying each month, making it easier to budget for the repayments. Choose to do your loan application online, over the phone or in-branch. These are the documents you will need to have ready:

  • Bank statement reflecting three salary deposits
  • Proof of residence not older than three months
  • Proof of income

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