Personal loans in South Africa

Personal loans are becoming a popular credit solution for many South Africans. While many people rely on unsecured loans, some people need to get secured loans instead. This means that individuals have to put collateral up as security for the loan.

Personal loans can help individuals to meet their financial needs. This may include paying for tertiary education costs, paying for medical costs, or even an emergency car repair. Unsecured loans are more popular, while collateral loans are also an option available for individuals willing to put their assets up in exchange for the loan. Assets that can be put up as collateral may include jewellery, property, or other high-value items.

A number of lending institutions offer collateral loans in South Africa.

Paragon Lending:

This is an institution that specialises in providing short term secured asset-backed finance. Paragon provides help for individuals who do not meet commercial banks’ lending criteria. It also often provides funding for developers to unlock the value in their properties. As a short term lender, this collateral loan provider gives clients a maximum period of up to 12 months to repay the loan.

Nhfinance:

Nhfinance allows individuals to borrow against an asset. Essentially a short term loan provider, Nhfinance is able to loan you 80% of the proceeds of the sale within 24 hours. By providing an asset as collateral, you are able to access the cash you need to meet any of your financial obligations. While it may be risky, if you avoid defaulting on payments, the loan can serve you well.

Xcelsior Loans:

While collateral can be provided in the form of assets, Xcelsior loans requires collateral in the form of motor vehicles. You get credit against your vehicle, so the value of your vehicle determines the loan amount you qualify for. There are no affordability assessments and Xcelsior provides help for individuals who don’t meet bank criteria.