Loans for Blacklisted People in South Africa: What You Need to Know - italkloans

Loans for Blacklisted People in South Africa: What You Need to Know

Are you looking for loans for blacklisted people in South Africa? You are in the right place. We are going to cover everything you need to know, including application requirements, loan amounts, the best lenders, and tips to get approval fast.

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Top Lenders Proving Loans for Blacklisted Clients

Here are some lenders you may approach if you need cash with a poor credit rating:

Want to know about loans for blacklisted at Capitec? Read this article.

Basics of Loans for Blacklisted People in South Africa

A blacklisted loan is cash you get from a lender and pay back in an agreed-upon period and with interest. As you might imagine from the name, this money is loaned to you even if your credit score is bad.

Several things differentiate blacklisted credit packages from regular personal loans.

No credit checks

The first is that lenders who offer this service don’t care much about your credit score. Instead, they are interested in knowing how much you earn and whether your income enables you to make repayments without struggling.

Higher interest rates

South African lenders offering loans for blacklisted people charge high interest rates. This is a safety measure they put in place to try and protect themselves from bad debtors. After all, most people who apply for bad credit loans may have struggled with debt in the past.

Less room for negotiation

Under normal circumstances, it’s possible to negotiate better loan terms. For instance, you can increase the repayment term to lower installments. However, these advantages are mostly extended to borrowers with stellar credit ratings. If you are blacklisted, chances are lenders will only entertain your application on their own terms.

Eligibility Requirements for Blacklisted and Need a Loan Urgently

In most instances, loan application processes take time because lenders will be trying to determine if an applicant is fit to receive a loan. The most important step in the decision process is checking whether the borrower has a good credit score. This will help determine how much to lend, the interest rate, and other repayment terms. 

However, all this may not be necessary with blacklisted loans. After all, the lender already knows that you have had trouble paying back the money you owed in the past. So what are the eligibility requirements?

  • You must be over the age of 18
  • Have a valid government-issued South African ID or passport
  • A verifiable and regular income source (self-employed individuals qualify)
  • You should have a valid bank account
  • You must not have declared bankruptcy recently
  • No outstanding debts with the lender
  • You are required to have a low debt-to-income ratio;
  • In some instances, collateral may be required to secure the blacklisted loan.

Tips to Get Approved for a Loan for Blacklisted and Bad Credit

Getting approved for a loan with poor credit is not easy. In most instances, you shouldn’t even waste time approaching banks. The majority of South African banks will decline your application as soon as they notice how bad your credit score is.

So, how do you increase your chances of approval? Well, it’s good to show that you have been doing something to improve your credit rating. This includes paying bills on time and making efforts to return any money you owe. 

Here are other things you can do to boost your chance of getting approved:

  • Dispute any errors on your credit file. It’s not uncommon to find errors in your report. Fixing them may increase your score and chances of approval.
  • Find someone to cosign your loan. If you have a loved one with better credit, they may increase your chances by consigning your loan. However, they will be liable for your actions should you not pay the lender back.
  • Offer Collateral. Securing your loan may show the lender that you intend to stick to the terms and conditions. This is especially true if your collateral is way more valuable than the size of the loan. 
  • Improve Your Debt-to-Income Ratio. If you reduce the amount of debt you owe compared to your income, this may help you get approved for a loan. You can also lower your monthly expenditure.

Types of Loans for Poor Credit Individuals

If you are blacklisted, there are several types of credit packages you can access. For instance, you can apply for a payday, no-credit-check, or secured loan. Do you know that it’s even possible to apply for a home loan when you are blacklisted?

Here are the common types of loans you can access if your credit score is bad:

Long Term Loans for Blacklisted

The phrase long-term, in this instance, refers to the period you are given to repay the money in full. In most instances, this applies to large amounts of money. For instance, you may apply for an R30000 loan for blacklisted. The lender may give you up to two years to return the money. It helps if you have some collateral to offer the lender.

Feature lender: Ayoba Loans

Ayoba Loans South Africa is an online loan provider offering fast, convenient and secure loan services. They offer quick loan decisions with no paperwork. You can repay the loan via several means, including direct debit, debit order, and e-wallet. What makes this lender perfect for those seeking poor credit loans is that they also offer financial advice and budgeting tips to help customers plan their finances. This means you can get everything under one roof.

Short Term Loans for Blacklisted People

Short-term loans are the opposite of long-term credit packages. You are given a limited period to repay the money you owe. In some instances, lenders may even give you two weeks. However, most will expect the money within a month. This credit facility is mostly utilized by employed individuals. If you know you will receive your salary in a few weeks, you can take out a short-term cash advance to cover your need while you wait for payment. 

Feature lender: ATARA 365

ATARA 365 offers blacklisted loans from R 1000.00 to R 300 000.00. Their services are perfect for borrowers looking for quick access to cash to cover unexpected costs or short-term expenses. In most instances, you must pay back the money within six months. ATARA strives to provide a fast and simple loan application process, with minimal paperwork and fast approval times. They also offer a variety of financial literacy resources and educational materials to help their customers make informed decisions on credit packages.

Payday Loans for Blacklisted

A payday loan is a form of short-term lending. Most lenders who offer this server expect you to repay the amount in full when you receive your salary. There are thousands of lenders offering this service in South Africa. However, you need to be extremely careful when dealing with payday lenders. They usually charge considerably high interest rates, making this type of borrowing expensive. As such, you must only use it as a last resort to avoid worsening your financial situation.

Featured lender: Speedy loans

Speedy Loans is a financial services company offering short-term loans to individuals in need of quick cash. They offer fast, hassle-free services with flexible repayment terms and competitive interest rates. The entire application process is online, which makes it quite convenient. Please note that Speedy also offers debt consolidation services.

Quick Loans for Blacklisted People

Are you looking for instant loans with poor credit scores? Look no further. There are several South African lenders who will offer you cash within an hour. If you want the fastest solution, a pawn shop would be as quick as it gets. For example, you can walk into Cash Crusaders with your collateral and walk out minutes later with cash in hand.

Featured lender: Cash crusaders

Cash Crusaders is a registered personal loan and finance provider offering easy and convenient access to loans of up to R25,000. All you need to do is find a valuable to use as collateral. They accept a variety of items, from gadgets like cellphones, computers, and tablets, to appliances like fridges and TVs. You can choose your loan amount as long as it’s less than the value of your collateral.

Consolidation Loans for Blacklisted

It’s not uncommon to be tempted to take out loans and use different credit cards until the payments are no longer manageable. In such instances, one of the best ways out is to take out a consolidation loan. Fortunately, this is possible even if you are blacklisted. There are several lenders offering this service in South Africa. They allow you to take out a large chunk of credit that covers your existing debts. At the end of the day, you will remain with one single monthly payment and a fixed interest rate, which makes things easier to manage.

Feature lender: African Bank Loans for Blacklisted People

African Bank allows you to combine up to five different loans into one package. You can take out a consolidation loan of up to R350 000 and save cash with lower interest rates and easier monthly installments. To apply, you need proof of income in the form of salary deposits into your bank. African Bank offers a Choose Your Break feature that allows you to determine your own installments. These loans typically have a repayment period of up to five years.

Home Loans

The beauty of a home loan is that it’s considered a secured credit package. In simpler terms, the home will only be yours once you are done repaying the money you owe in full. As such, the lender will not have much of a risk to deal with. This is why you can still get a home loan even if your credit score is not perfect. 

Featured lender: Capitec Home Loans for Blacklisted

Capitec offers different types of home loans. For instance, you can get money to start your home from scratch, or you can transfer it from another bank. The application process is completely online and very simple. Also, unlike other banks, you can apply even if you are self-employed. All they need to see is that you earn enough to be able to make payments on time. For a detailed breakdown of the costs you’ll be dealing with, it’s advisable to use the Capitec affordability calculator. This will make it clear whether taking out a home loan is a good idea.

Personal Loans for Blacklisted People in South Africa

One of the best ways to get a personal loan if you are blacklisted is to use a loan comparison tool. Like Italkloans, there are many platforms that compare different lenders so you can get the best terms and the most affordable credit packages.

Feature lender: Moneyloans

Money Loans is a comparison platform that gathers many lenders in one place. This allows you to choose the best terms, interest rates, and amounts. The best thing about using a comparison platform is that you don’t have to submit multiple applications. A single application can get you several quotes. You can then choose which lender to go with a complete the process. You can think of this as some sort of pre-approval. Eager to try it out? Fill in the form below to start receiving loan offers in your email now!

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