Tag: get loan online

In our previous blogs, you might have read a lot about different types of loans, lenders and banks, their terms and conditions, the best way to apply for loan online, and more such information. But we never talked about the costs of borrowing money in South Africa. 

Understanding the costs of loans in South Africa is of the utmost importance to ensure that you are educated on the pros and cons of taking out a loan. As a country that is submerged in debt, having a complete understanding of the consequences of taking out a loan will be beneficial. This will help you make an informed decision, be financially responsible and take out a loan only when you need it. 

In this article, we will tell you the pros and cons of taking out a loan in South Africa. 

Pros of Taking out a loan

• Borrow large amounts

The biggest benefit of taking out a loan is that you can borrow larger amounts. This is to compare with the amounts you can take out when you use a credit card. Credit cards usually have an upper limit to spend that will increase based on your spending and payback habits. This usually takes time.

However, when you apply for a loan, you can get approval for a large amount in a short time, and you get the money in a lump sum which can be beneficial when you are in a sticky situation financially. 

• Spend money as you desire

When you take out a loan, you have the freedom to spend the money as you desire. For example, if you take out a personal loan, you can spend it on your wedding, holidays, cover your extra immediate expenses, and more. 

However, loans such as home loans, car loans, student loans are specific and need to be spent on buying things that they are meant for. So, a home loan for buying or renovating your home, a car loan for getting a car, and a student loan for your education. 

But make sure that you make habit of borrowing large sums and spending it carelessly. Remember, you have to repay the loan amount in due term. 

• Repayment structure flexibility

When you borrow a loan, you will have the flexibility of repayment structure. However, this flexibility will be agreed upon by you and the lender. Once agreed you need to follow that repayment plan for due time. 

If you default in repaying the loan, it will affect your credit score and the ability to take out a loan in the future. 

Cons of Taking out a Loan

• Good credit score

If you want to take out a loan, you must have a good credit score. The score must be above 580 to be considered as good. You must understand that a good credit score is elemental to the approval of your loan. 

If you don’t have a good credit score, it is indicative of poor financial management. This will affect your approval and you might even get blacklisted if it’s too bad. Once you are blacklisted, getting a loan will be next to impossible. 

• Increased financing costs

When you are deciding to take out a loan, you need to make sure that you can afford the loan. You need to take a good look at your income and ensure that you have enough money to afford the loan and finance any emergencies. 

This is important because if you don’t consider affordability and chew more than you can bite, you will default on the repayment further increasing your problems. You will end up in a debt trap and you certainly don’t want it! 

• More now but less for future

When you get loan online, the money will be able to cover your expenses in the present time but will leave you dry for future expenses. There might be a time when you have to compromise your desire to enjoy such as going out with friends. You might also struggle for funding your short-term emergencies. 

Taking a loan might seem like a tempting offer but it does have long-term consequences on your budget. So, be mindful when you take out a loan. 

Factors Determining Loan Costs

• Size of loans

Get this that the bigger amount you borrow, the bigger repayment amount you need to pay monthly. Hence, take out a loan that you can afford. If you default on repaying the amount, it can cost you a lot in the future. The rule is that if you have a higher income and a great credit score, you can borrow significantly higher. 

• Interest rates

You might already know that loans have interest rates applicable that will determine your monthly repayment amount. Also, interest rates are how lenders will make money. Based on your loan type and loan term and the current status of the market, the interest rate will be determined. 

If you have a great credit score or a secured loan, you will get lower interest rates. So, aim for loan types and amount that gives you lower interest rates. 

• Loan term

This is another deciding factor! If you take a loan that you repay in short term, you will have a higher repayment amount but lower interest rates. However, if you take a loan that you repay in long term, you will have a lower repayment amount but higher interest rates. 

You must find a perfect balance between your loan amount and repayment term to get the best of the loan. 

Through this article, we want you to better understand the whole concept of loans and how borrowing will affect your finances. This will certainly help you make an informed decision. 

To find the right loan for your needs, you can visit our website Snappy Loan. On our website, you can search, review, and compare different loan offers available in South Africa. You can also visit the lender’s website directly from our website by clicking on ‘Snap It!’ for applying. 

You can also read all our previous blogs for more information on different types of loans. Visit our website now.

Have you applied for a personal loan recently? Did your loan application get rejected? If so, you might be frustrated and worried about how you will manage your current finances. You might also be thinking that the lender has a specific grudge against you and hence they rejected your loan application. 

But this is not the case! Your loan application might have got rejected due to several reasons. In this article, we will tell you the reasons that might be responsible for the rejection of your loan application along with ways to increase your chances of approval. 

Possible Reasons Loan Application Gets Rejected

• Credit score problems

If you didn’t know this already, most lenders will check your credit scores before approving your loan application. Now, there can be several things that might have triggered issues with your credit scores:

1. You may have a low credit score. This is indicative of poor financial management and shows that you have a history of defaulting on your debts. 
2. You may have no credit history. This doesn’t give the lender a clear picture of your creditworthiness to approve the loan applications. 
3. You have too many debts. If you have already taken too many debts that you can’t afford to repay, the lender might consider this as an issue and reject your loan application. 
4. You have made too many credit inquiries. If you have applied for multiple loans, the lender will assume that you have too many financial problems. This might be a reason for rejecting a loan application.
5. You may have negative judgments. If you have been entangled in a court judgment, debt review, sequestration, the lender might reject your loan application. 

If you want to know how you can increase your credit score, you can read our previous blog about ways to improve your credit score here. 

• Income problems

Most lenders will conduct an affordability assessment by looking at your monthly income and employment status. For example, if you are permanently employed and have a monthly income of R10, 000 or more, the chances of your loan approval will increase. 

When you have constant monthly income, the lender trusts your ability to repay the loan in due time as compared to someone who works on contracts. 

• False information on the application form

When you fill the application form, it is of the utmost importance to ensure that you give the right information. If you give false or incomplete information about yourself, the lender will reject your application. 

If you are wondering why this is important, the answer is that most lenders will use personal, financial, and employment information to check your credibility. If they find something that doesn’t match your application form or is false, they will reject your loan application. 

• Inaccurate loan purpose

When you apply for loan online, the lender will ask you the purpose for taking out the loan. If the purpose of taking out the loan doesn’t relate to the type of loan, your application may be rejected. 

For example, if you applied for a personal loan, the lender would expect you to give loan purpose as buying a home, fulfilling your wedding or holiday expenses and such. But if you are using the personal loan to buy Bitcoin or start a business, the lender might not see it as the right fit for the type of loan and reject your application.

• Don’t match the requirements

If you have researched different loan types and lenders, you might have noticed that different lenders and loans have specific requirements for making an application. If you don’t meet those requirements, your application will be rejected. 

Hence, you must take note of the loan requirements and ensure that you fulfil those requirements accurately.

Ways to Increase Your Chances of Approval

Now that you know the most common reasons why a loan application might get rejected, let’s talk about how you can increase your chances of approval. 

• Improve your credit score

One of the ways you can ensure loan approval is by improving your credit score. There are several ways you can use to get a score above 580 that will make it easy for you to get approval. 

1. You can ensure that you deposit your monthly instalment on the due date and avoid defaulting.
2. If you don’t have a credit history, start by building it slowly. Take an affordable credit card and keep an eye on your expenses.
3. Don’t apply for too many loans. Apply for loans that you can afford to repay. This will increase your credibility. 

If you want to know more ways to improve your credit score, read our previous blog here. 

• Debt settlement

Before you decide to get loan online, make sure you settle all your previous debts. Once you have settled all your debts, you will have space in your monthly budget to afford a new loan.

If you have settled your previous debt efficiently, the lender will find you credible and approve your application.

• Take a secured loan

Another way that you can increase your chances of getting a loan application approved is by applying for a secured loan. When you put a personal property or asset as collateral, the lender is interested in taking the risk. If you default in repaying the loan, the lender can take the personal property away from you. This increases your chances of getting your loan application approved. 

• Find a co-signer

A co-signer can be a relative or friend who has a better credit history and income than you. This way lenders will be ensured that they can recover the money in case you are unable to repay. 

The co-signer will be responsible for repaying the loan along with you. So, choose someone who has the better financial ability as compared to you. 

Now, these are only a few ways that can help you improve your chances of getting a loan application approved. If you want to know more about different loan types, lenders, and more detailed information, you can visit our website to read detailed and informative blogs. 

Get in touch with our team to know more about South African lenders and loans!

Do you intend to take out a loan from one of the biggest financial institutions in South Africa? Do you know what your credit score is? Do you think you have a good credit score for applying for a personal loan? If you are wondering about these questions for some time, you have come to the right place. 

In our previous blogs, we have always talked about the different types of loans you can apply for, the lenders, and their terms and conditions to approve the loan application. And there is always one thing in common, you must have a good credit score to apply for a loan online and get it approved without any hassle. But what does it mean to have a good credit score or rather what is a credit score? Let’s look. 

Credit Score: What is it?

In simpler terms, a credit score can be defined as a numerical score that tells the loan lender that how consistent you have been in repaying your previous debts. It also indicates whether you repaid your loan in the given loan term or not. 

If you have a good credit score, the lender will consider you at a low liability risk and approve your application easily. You might also get a lower interest rate. However, a bad credit score will cause problems in approval. 

A bad credit score indicates that you have previously defaulted, paid the loan after your term had ended, or have applied for too many credits. This tells the lender that you are at high liability risk. This gives the loan lender the right to reject your application or charge you a higher interest rate. 

Anytime you apply for loan online, your credit score will be evaluated. This will determine your eligibility to get approval on the loan application. 

Credit Score: How do I know if it’s good or bad?

So, there is a simple scale to determine if your score is good or bad. 

• 579 and below: Poor
• 580-669- Average/Good
• 670-739- Very Good
• 740-799-Perfect
• 800+- Outstanding

You can keep this scale in your mind when determining whether your credit score is good or bad. Anything above 580 will certainly make it easy for you to apply for a loan online. You can easily get your application approved and might also get lower interest rates. 

So, if you haven’t paid attention to your credit score, now is the time. Look at your credit score and if you find it below 580, make conscious efforts to improve it. However, you should know that improving your credit score will require time. Although, there are a few ways you can choose to improve your credit score gradually. 

Credit Score: 7 Ways to Improve

Here are 7 ways that you can use to improve your credit score gradually. You must choose the way from the list as per your situation. Every improvement way mentioned here might not work for your situation. However, knowing about it will certainly give you an idea about how to improve your credit score. 

• Learn about your credit score

The first step to improve your credit score is by becoming aware of it. There is no point in ignoring your credit score. Knowing about your current credit score will allow you to improve it efficiently and quickly. In South Africa, you can apply for one credit score report every year. You can apply to credit bureaus such as Credit Genie or TransUnion to know your credit score. 

• Repay your existing debts on time

Another way to improve your credit score is by making sure that you repay your existing debts in time. Don’t default or delay your repayments. If you didn’t know this already, a third of your credit score is determined by your ability to make repayments on time. 

• Bring some stability in life

To improve your credit score, you need to bring some stability to your life. You can do so in several different ways simultaneously. First, start by getting a stable job or source of income. Make sure you don’t change your address too frequently. Keep an eye on your spending habits. Don’t max out your credit cards and make sure not to spend on things that you don’t necessarily need. If it is not crucial for your survival, do not buy it! 

• Avoid any instances that can drag you in court

Several lenders see courtroom drama as a liability risk. When you are summoned to the court for a hearing, you might not have time to work and thus repay your loan. Hence, avoid instances that can drag you to the court. 

• Borrow what is necessary

Make sure that when you want to get loan online, don’t borrow more than what is necessary. If you have a good job and monthly income that can fulfil your daily needs, borrow only what you need and what you can afford. If you borrow more than what is required, you might lapse your repayment which will affect your credit score negatively. 

• Low amounts of high limit credit cards

This is generally a good situation to be in. If you have a credit card with a high spending limit but you made the repayment in full and have a low amount left at the end of the month, your credit score will improve. 

However, make sure that reduce your credit limits when you are applying for a home loan. A high credit limit might be seen as a liability by some lenders. 

• Don’t make a regular credit application

Make sure that you don’t apply for credit loans frequently. This is an indication that you have poor management of your finances and thus need external finances to cover costs. This will negatively affect your credit score. 

So, these are a few ways that help you improve your credit score efficiently. And if you want to apply for a loan, you can check out our website at Snappy Loan. 

We have gathered all the latest loan offers from prestigious lenders in South Africa. You can search, compare, and review different loan offers and make a direct application on the lender’s website. 

You can also read our previous blogs to gain more information on applying for a loan in South Africa from different credit providers. 

Visit our website now.

Have you been thinking of taking out a loan from Direct Axis bank? If so, you will make the best decision when it comes to your finances. Direct Axis bank is a registered credit provider so you can rest assured that you will get the best loan plans and offers. 

Direct Axis bank is also a business unit of FirstRand Bank Limited, so it is registered under National Credit Act. This allows you to get the finest personal loan and consolidation plans from Direct Axis. In this article, we will learn about Direct Axis personal loans in detail. 

Direct Axis Personal loans

When you are getting personal loans from Direct Axis, you can get a minimum loan amount of R1, 000 and a maximum loan amount of R250, 000. The loan term offered by the bank for a personal loan is between 24 months to 6 years. When it comes to interest rates, the bank provides as low as 15%. Remember that the maximum interest on loans in South Africa is around 24.75%. 

Apart from this, you also need to pay an annual percentage rate on Direct Axis loans. If you take out a personal loan of R50, 000 for a loan term of 72 months, you need to pay an annual percentage rate of 15% that will bring your monthly repayment amount to R555. 

Direct Axis personal loans: How do they work?

As mentioned above, you can take a loan amount between R1, 000 and R250, 000 with a loan term between 24 months and 6 years. You can either apply for loan online or visit the nearest branch of the bank. Once you have submitted your application, you need to wait for a few days. The bank will review your application to determine whether you are eligible for the loan or not. 

Also, the bank believes in responsible lending so it will provide you a loan amount that you can afford. Once your application is approved, you will get the loan amount in your bank account in just a few hours. Direct Axis personal loans can be used for different purposes. Whether you want to cover your existing finances, pay for your holiday or wedding, or any other expense you might want to cover, you can use the money from personal loans. This is the reason why personal loans are a favourite for many people in the country. 

Direct Axis personal loans: What are the benefits?

• With Direct Axis personal loans, you can apply online right from the comfort of your home. You don’t have to go anywhere else to make an application. With just a few clicks, you can apply for a personal loan online.
• Direct Axis provides fixed interest rates on personal loans. This allows you to have a fixed monthly repayment amount. This ensures that you can manage your budget effectively. 
• When you want the loan fast, you can trust Direct Axis. The bank is fast and will deposit the loan amount in your bank account in 48 hours if everything in your application checks out. 
• And you can use the money for any purpose you want. 

Direct Axis debt consolidation loans

The bank also provides debt consolidation loans for a minimum amount of R1, 000 and a maximum amount of R250, 000. The loan term offered is between 24 months and 6 years. The bank provides an interest rate as low as 15%. The maximum interest rate in South Africa is 24.75%. You also need to pay an annual percentage rate that includes interest rates, initiation fees, and admin charges. 

Direct Axis debt consolidation loans: How do they work?

If you have multiple loan accounts that demand you to pay several monthly repayments, you will understand how difficult it can get to maintain the accounts consistently. Also, you can default on repaying any loan. So, the best way is to consolidate all these smaller loans in one account. 

Direct Axis debt consolidation loan will allow you to repay all your existing loans. The bank will take care of the admin and ensure that you are left with one loan account that has fixed interest rates and longer repayment terms. This will ensure that you just have one loan account to manage, making it easier to manage your finances. 

Direct Axis debt consolidation loans: What are the benefits?

• With debt consolidation loans, all your loan gathers at one account that has fixed monthly repayment. 
• Since you are paying less, your monthly repayment will become more affordable. 
• All the admin work will be handled by the Direct Axis bank. 
• With debt consolidation, you will be able to qualify for more credit easily. 

Direct Axis personal loans: What are the requirements?

When you want to get loan online, you need to provide the following documentation:

• You must have a monthly income of R5, 000. 
• You must have a good credit record
• Provide a valid South African ID issued by the government 
• You need to have a South African bank account to get the loan money. 
• Provide proof of residence that is no older than 3 months. 
• If you are getting a debt consolidation loan from Direct Axis, you also need to provide bank statements for the past 3 months. You can also provide payslips. 

Direct AxisLoans: How to apply?

If you want to apply for Direct Axis loans, you can visit our website Snappy Loan. You can search and review the loan offer that you want to apply for. You can click on ‘Snap It!’ which will take you to the website of Direct Axis bank. 

You can fill the application form and provide the required documents and wait for the approval. Once approved, you will get the loan amount in your bank account in 48 hours. 

Make sure to use the loan calculator to calculate your monthly repayment amount for a loan amount and term you intend to apply for. This will ensure that you take out a loan that you can afford. 

Also, Direct Axis provides a Personal Protection Plan that will cover you in the event of disability, illness, or death. 

Direct Axis: Why are the good choice?

Taking out a loan from Direct Axis will be the best choice because the personal and debt consolidation loans offered are unsecured. So, you don’t have to put a personal asset as collateral. Also, the bank has excellent customer service. And lastly, the bank is regulated under the National Credit Act No. 34 of 2005. 

If you want to know more about Direct Axis bank loans, visit our website Snappy Loan now.