Dangers of Loans Online in South Africa

The internet has made it easier for individuals to get access to loans.  Gone are the days of only relying on banks to give you access to the finance you need to meet your short and long term finance needs. Nowadays you can access loans online in South Africa by choosing any lender of your choice. With this convenience come a few dangers you need to beware of.

High fees

High Annual Percentage Rates (APR) usually mean that the cost of the loan will be high. Getting access to fast loans online in South Africa usually means that you have to contend with high costs. You need to make sure that you understand how the fees structure works.

Identity theft

Identity theft is one of the fastest growing crimes in South Africa.  The reality is that when applying for a loan you will be asked for some sensitive information. Before you apply for any loans online in South Africa you need to make sure that you check for encryption or security measures on the site. You need to beware of fraudsters posing as legitimate lenders.

Watch out for hidden fees

Some lenders may charge you extra fees for making early payments. Make sure that you read the fine print before accepting any loan terms. Loans online in South Africa should have clear and transparent terms.

There may be scams

Don’t sign up with the first company you come across. Look for signs of credibility. The lender of your choice must be a registered credit provider, with the National Credit Regulator (NCR) and it must be fully compliant with the National Credit Act. The best lenders providing loans online in South Africa have a proven track record and are relied upon by various people.