Are you looking for private loans in South Africa? The good news is there’s a long list of private loan lenders to choose from.
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Guide to Private Loan Lenders in South Africa
The lending industry in South Africa has grown in leaps and bounds. So, it’s not surprising that borrowers can find it complicated to navigate this financial landscape.
This is especially so because options have expanded beyond institutional lenders, to include private lenders. This guide covers all you need to know about private lenders in South Africa.
KEY TAKEAWAYS
✔ Private lenders are non-bank companies different from conventional, institutional, and traditional lenders.
✔ These private moneylenders offer several advantages including innovative financial products, easy accessibility to loans, fast approval, and flexibility.
✔ The industry is full of private lenders, and it’s important to compare your options to find the best one for you.
✔ You can compare private companies that offer loans in South Africa, with CashCrescent
What’s A Private Lender?
If you’re looking for a loan, the good news is that banks are no longer your only option. There’s a new breed of lenders – private lenders – that allow you to borrow the money you need.
Private lenders in South Africa typically specialise in offering credit, unlike banks which have diverse offerings, such as checking and savings accounts. Some private lenders are non-institutional, meaning they’re not tied to a major bank or corporation.
On the other hand, some private lenders are simply smaller business units of major banks, operating under a different name.
In a nutshell, private companies that offer loans in South Africa can be an organisation, a group, or an individual, typically not tied to any financial institution.
These credit providers can offer a range of financial products, including personal loans, payday loans, debt consolidation loans, and more.
They mainly differentiate themselves from conventional lenders by offering more informal, flexible requirements, thus making it easier and faster to get a loan.
Benefits of Applying With a Private Lender
Private lenders offer a range of benefits because they are non-institutional and more specialised. Here are some of the top benefits associated with borrowing money from a private loan lender.
A Wider Range of Products
Banks may offer a limited range of loan products, because they have diverse operations, such as business services and checking and savings accounts.
On the other hand, private lenders can offer a wide range of loan products because this is their speciality. An important example is the fact that borrowers often have trouble finding smaller loans with shorter repayment periods from banks.
This option is easily available from private lenders who can offer amounts as low as R100 and loan terms as little as one day. Thus, private lenders can easily meet the needs of borrowers.
Easier Qualification Requirements
One of the best benefits associated with private moneylenders is that the eligibility requirements tend to be more relaxed.
For example, borrowers with low credit or a non-traditional work history may be declined by traditional financial institutions, but have a higher chance of approval with a private lender.
Private lenders are more likely to consider other factors, such as your education and additional income streams. Banks are more risk-averse and tend to stick to well-defined lending criteria.
Also keep in mind that most bank loans involve large amounts – for example, car or home loans.
So banks have to be strict with the approval process to minimise the larger risk, and they have longer income verification processes to ensure a borrower’s ability to repay large sums.
Private lenders can approve loans in as fast as 24 hours because there’s a lower risk with smaller amounts.
Minimal Paperwork
Most private credit providers have developed innovative lending platforms that make it easy to apply for a loan online and get approval.
The case is different from that of traditional financial institutions and institutionalised lenders, where the application process often involves a lot of documents and paperwork.
The tedious process means you have to wait longer to get the money you need. But, with a private lender, the process is often faster, and you can provide all the required documents electronically.
Types of Private Loan Lenders
There are a range of direct loan lenders in South Africa, including online/fintech lenders and individual private lenders.
We have broken down private lender types into the following categories to help you understand the main available options.
Personal Loan Lenders
Private lenders for personal loans typically offer amounts from R5000 to R250,000. These loans include debt consolidation loans, which can be used to combine multiple debts and simplify payments.
Private personal loan lenders in South Africa offer flexible terms of up to six years, and combined with the flexible range of loan amounts, the money can cover various purposes.
You can get a personal loan from a private lender and use the money for debt consolidation, home improvements, weddings, and large purchases or expenses.
Payday Loan Lenders
Payday loans are another popular option for borrowers looking for private loans in South Africa. These loans involve short terms, high interest rates, and smaller loan amounts.
Payday loans are designed for immediate money needs, especially emergencies. Approval is typically based on your monthly income, so you’ll need to provide your latest payslips and/or bank statements.
Because of the high costs associated with this type of credit, it’s best to only borrow amounts you can afford to pay back, and only to address urgent financial needs and genuine emergencies.
Micro Lenders
Micro loan lenders in South Africa specialise in offering small loans to borrowers. Borrowers in South Africa often turn to private lenders for smaller loans if they don’t have access to local financial institutions.
The good news is that there are many online microloan platforms in South Africa. Some lenders also have physical locations and offer secured loans where borrowers can bring their assets to use as collateral.
Microloans can be used by entrepreneurs to fund small businesses or for consumption purposes.
Online Lenders
You can find many private money lenders online in South Africa. The application process is similar to getting a loan from a bank, but it’s often faster and more convenient.
The process involves filling out an online loan application form with the required details. You’ll typically need to provide your personal and contact details as well as your employment and banking information.
The lender will also require additional documents to verify the information supplied, namely recent payslips and bank statements. The good news is you can complete an online loan application with many private lenders in as little as minutes.
Compare Private Money Lenders in South Africa & Apply
As mentioned, there are many private loan lenders in South Africa. The question is, how do you find the right company to meet your needs?
It’s important to compare your options. Here are some important factors to consider when comparing cash loan financial services.
Legit and Regulated
It’s essential to consider registered loan companies only. Some private lenders operate illegally in an unregulated environment, which puts you at risk.
For example, you never know if you’re dealing with a scammer, or the lender could charge extremely high interest rates. The good news is that it’s easy to check online if the company you’re dealing with is registered with the National Credit Regulator (NCR).
Also keep in mind that even if you’re dealing with a registered credit provider, it never hurts to check reviews online.
Look at what past and current clients say about the company to determine whether the lender is trustworthy and has a good reputation.
Flexibility and Requirements
One of the most common reasons to apply for a loan with a private lender is if they offer plenty of flexibility, especially when it comes to requirements.
Make sure the lender offers flexible lending options that make it easier to qualify. For example, the best private lenders require little to no paperwork. Others don’t require physical documents, meaning you can submit your payslips, bank statements, and South African ID online.
Other lenders may accept borrowers with less-than-perfect credit scores.
Flexible lending criteria offer a higher chance of getting the cash you need, particularly if you have been turned away by traditional financial institutions.
Product Types
Unlike banks, private lenders tend to have better specialisation. That means their only focus is on loans and associated credit products. However, not all financial institutions offer the same products.
Product details range from lender to lender. So when comparing loan offers, make sure it’s the right product, whether you’re in the market for personal loans, payday loans, debt consolidation loans, or credit cards.
Also compare the details, such as the loan amount and repayment period, so you get a loan that best matches your needs.
Interest Rates and Fees
Borrowing money costs money – it’s a fact of life that’s unavoidable. However, there’s a lot you can do to minimise the costs. Be sure to pay attention to the interest rates and fees.
Private lenders typically charge an initiation fee and a monthly service fee, but additional charges may apply. Some lenders may offer a lower interest rate but then charge high fees.
That’s why you should also look at the annual percentage rate (APR), which includes the interest rate plus fees. APRs typically range from 30% to 60% – the lower the figure, the better.
Also if you have a good credit score, you’re better off applying with a lender that offers personalised interest rates so you can reduce borrowing costs.
Terms and Conditions
Whenever you qualify for a loan, be sure to scrutinise the terms before signing on the dotted line.
Even before you receive the loan contract, ask the lender questions to ensure you’re making an informed decision.
Read the loan contract carefully and make sure you understand the terms and conditions.
Don’t sign anything you don’t understand, and watch out for hidden costs or other terms that may put you at a disadvantage.
Other Perks
Check to see if the lenders on your list offer additional benefits. For example, some private lenders offer faster approval processes and payouts.
That way, the money can hit your bank account as soon as possible.
Your best bet is to apply with online lenders since they’re more likely to offer easy-to-complete applications, automated underwriting systems, and streamlined processes.
Private Loan Lenders List in South Africa
Here’s an A-Z list of South African private lenders.
A
AA Cash Loans
This loan agency offers personal loans, payday loans, and debt consolidation with loan amounts of up to R250,000.
ABC Cash Loans
This credit provider offers short term loans up to R8000 with repayment periods of up to 6 months.
Access Loans
This lender offers personal loans, home loans, and vehicle loans.
Ackermans Loans
You can apply for personal loans of up to R50,000 via this retail store.
Afri Loans
Be sure you’re dealing with a registered credit provider before applying with this lender.
African Brothers Cash Loans
This lender is no longer operational. It was liquidated a while ago, so beware scammers.
Amantla Cash Loans
This loan agency is based in Bloemfontein and does not operate online.
Assupol Loans
Avbob Loans
Ayoba Loans
B
Babereki Loans
Bafana Finance
Balungile Cash Loans
Bay Loans
Betterbond Loans
Bhuti Cash Loans
Blink Finance
Boost Loans
You can apply online for short-term loans ranging from R500 to R8000.
Braamfin loans
Bruma Finance
Budget Financial Services
C
Capricorn Cash Loans
Cash Balance
Cash Converters
Cash Crusaders
Challenor Finance
Clientele Loans
Cobol Finance
Coco Loans
D
Dial A Loan
Dial Direct
E
EasyPay Loans
EC Loans
Elite Cash Loans
Express Finance
EZ4U Loans
F
Fidelity Loan Firm
Finbond Mutual Bank
First Choice Cash Loans
First for Women Loans
Five Star Cash Loans
Flow Finance Loans
G
Game Cash Loan
Getbucks Loans
Gibela Cash Loans
Gumtree Loans
H
Hao Cash Loans
Hollard Loans
Hopon Loans
HR Microloan & Finance
I
Imali Micro Loans
Issa Cash Loans
Ithala SOC Ltd
Ithemba Loans
Izwe Loans
J
Just Bridge
JM Cash Loans
Just Money Loans
K
Kamela Quick Cash
Kings Micro Loans
Konga Loans
Koodo Loans
Kopano Kwik Cash
L
Lin Cash Loan
Lotus Loans
M
MBC Finance
Makro Loans
Mariner Finance
Mercantile Bank
Metrofin Loans
Microsure Financial Services
Miloc Micro Loans
Motemo Cash Loans
Mr Cash Loans
MTN Loan
Mulah Loans
Mzansi Cash Loans
N
Nako Cash Loans
Nkabane Financial Services
O
One life loans
Orange Cash Loans
P
Pow Wow Loans
Protea Loans
R
RAF Loans
Reathusa African
S
Scot Cash Loans
Senator Cash Loans
Senzokuhle Cash Loans
Shoprite Loans
Sizanani Cash Loans
Shosholoza Loans
SMA Finance Loans
Sokoza Cash Loans
Southern Finance
Speedy Loans
There are several options to consider when it comes to this lender, and some of them may not be legit.
