Loans For Debt Review Clients
How to get loans while on debt review in South Africa.
Getting loans for debt review clients isn’t as easy as you would expect mainly because debt review is a legal process making it illegal to get extra credit for anyone who is under review.
The NCA (National Credit Act) introduced the debt review process for debt review clients in order to help them overcome their over-indebted situation without access to further credit, personal loans or payday loans.
This therefore makes the granting of loans for debt review clients unlawful for a bank or lender as it would be in contravention of the NCA (National Credit Act).
However, whilst getting loans for people under debt review is basically against the law, there are other viable options for getting debt review loans.
To be successful you would have to approach lenders who aren’t too concerned about contravening the NCA (National Credit Act) by providing debt review loans.
Whilst there are many lenders who won’t have any qualms about handing out loans for people under debt review, please be careful of approaching unscrupulous loan sharks who could end up making your life a misery.
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Best Advice On How To Get Loans For Debt Review Clients
Is it possible to get loans for people under debt review? The short answer is yes, and no…
- I know this sounds confusing but if your debt review has been registered by the court you are not (from a legal point of view) allowed to apply for additional credit whilst under review.
- So for debt review clients to stay within the NCA & the law, they would have to cancel their debt review process before applying for additional credit or unsecured loans.
- However if you are willing to flout the law in this instance, then you will certainly be able to find a lender who is willing to grant you an unsecured loan despite your legal situation.
- Whilst the best option would be to avoid committing to extra debt & making your financial situation even worse, it is sometimes unavoidable & applying for a short term loan is the only option.
- So for debt review clients, there are certain options available to you to get a loan, one of which would be to end the review process or (the more popular option) to approach a non-mainstream lender.
- Also ensure that you do not commit yourself to some unrealistic repayment terms or high rate of interest when signing for your loan.
- Remember that loan sharks are not your only option & that there are reputable loan lenders out there who will grant debt review clients a loan at more favourable repayment terms & acceptable interest rates.
- Another option if you are employed & earning a regular salary is to ask for an advance on your salary or a payday loan. Payday loans generally need to be repaid as soon as you receive your pay at the end of the month so they can be considered as short term loans.
- When applying for a loan from a lender who is not a traditional lender, financial institution or mainstream bank be sure to check that they are at least registered with the NCR which will give you some protection.
- While it is totally possible to successfully obtain a loans while under debt review (you will always find a lender willing to grant you credit in such circumstances), you would be well advised to examine the conditions of the loan carefully.
- Take special note of the interest rate being charged before signing & committing to any loan not being granted by a traditional lender or bank as it could place you in a far worse financial situation.
- You should also ensure that the lender is registered with the NCR (National Credit Regulator) which would provide some protection & peace of mind as opposed to some of the unscrupulous lenders out there.
- It is also worth mentioning that you would have to settle all your existing debt before being able to successfully apply for further credit from any mainstream bank or credit provider, however this would not necessarily be the case with other more “flexible” lenders.
- Also remember that as it is actually against the law to be granted a loan while under debt review, there will be unscrupulous lenders who may be willing to grant such loans but they will be granted at a significant cost in terms of interest & stringent repayment conditions.
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So notwithstanding the above, and whilst you probably won’t be successful in applying through the mainstream banks, there are however certain lenders who may provide you with the credit you need at reasonable interest rates & with reasonable terms.