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Personal Loans

Personal Loans


Personal loans are loans that individuals take from a bank or another lending institution. They are designed to suit individual financing of large purchases, such as household appliances, or the payment of school fees. They allow lenders to pay a lump sum upfront for their purchases or services, and pay the money back in more manageable smaller installments.

There are broadly two types of personal loans - those that are secured and unsecured loans. A secured loan is where the lender puts up security of equivalent value for the loan, usually in the form of a personal asset that the lending party can then attach should the lender fail to repay the loan. An unsecured loan does not require that this type of security be put up. Interest is charged on personal loans, with rates varying dependent on the lender.

Personal loans are usually repaid in fixed installments over an agreed repayment period of time. The installments are calculated in advance, including the interest and other charges. In South Africa, as in most countries, a distinction needs to be drawn between the personal loans granted by major financial institutions and those from smaller entities. The latter comprises micro-lenders, which specialise in providing personal loans to individuals, which are usually non-secured. Interest rates are typically higher, and repayment schedules can be pretty onerous, so anyone approaching such an institution for a loan is advised to act cautiously.

What is more unique to South Africa, as a developing country, is a recent trend towards larger financial institutions offering unsecured loans to previously disadvantaged individuals, as part of a drive to include more people from these communities in the formal banking sector - colloquially known as banking the unbankables. This strategy is aimed at the overall upliftment on communities, and is recognition of the fact that non-access to credit severely hampers such upliftment.

South African Personal Loans Companies



African Bank Loans
African Bank offers a number of personal loans through a number of credit options. African Bank are considered to tbe the number 1 supplier of unsecured loans in South Africa



Insurance Companies
1Lifedirect 1Lifedirect offers Life Insurance
1st For Women 1st for Women offers Car Insurance
Auto and General Auto & General offers Car Insurance
Budget Insurance Brokers Budget Insurance Brokers offers Car Insurance
Dial Direct Dial Direct offers Car Insurance

Discovery Life Discovery Life Insurance

Hollard Insurance Hollard offers Car Insurance Hollard offers Life Insurance

Liberty Life Liberty offers Life Insurance

Hippo Hippo offers Short Term Insurance
Momentum Momentum  offers Life Insurance
Virgin Insurance Virgin Insurance offers Short Term Insurance

Offers Short Term Insurance Short Term Insurance

Offers Long Term Insurance Long Term Insurance


Personal Loans

2017/06/23 08:51:03 AM
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