Micro Loans South Africa
It’s never been easier to apply for micro loans in South Africa.
Micro loans can be applied for quickly & easily by completing a simple 3-step application form online with fast approval.
Due to the demand for micro loans, micro lending has grown massively since post apartheid South Africa.
A big plus factor is that people who don’t have a credit record can apply for micro loans & are often approved.
Micro lending provides a convenient way to get short term funding depending on any individual’s particular needs at any given time.
Be sure to provide a valid email address, because once you have submitted your application you will be contacted within 48 hours by email to advise you as to success of your loan application.
Also if your loan has been approved, the funds will be deposited directly into your account within 48 hours of submitting your original online application form.
What Is Micro Lending
Micro lending is a way of providing financial assistance to people, such as young entrepreneurs, who don’t have access to traditional forms of credit.
Post apartheid South Africa saw a huge growth in micro lending in an attempt to grow the economy & small business as well as to provide jobs.
The actual micro lending definition (also known as micro credit), as per Wikipedia, is as follows;
2 Reasons Why the Micro Lending Model Is Failing In South Africa
Unfortunately this fast growing micro credit model has caused massive damage to the South African economy, as reported in The Guardian.
So much so that international investors are pulling out of the micro lending industry as it could be on the verge of collapse for the following reasons;
- Whilst micro loans were intended to support fledgling entrepreneurs, these loans are being abused by ordinary consumers to support their buying habits & lifestyles and are therefore not being used to stimulate growth of small business & the economy as envisaged.
- The small percentage of micro loans that have actually been applied to funding micro enterprises, as per the original plan, have found that these businesses are just too small to create job opportunities & sustainable growth. Street vendors & the like have created very little job growth & have had little positive impact on the poor.
It is for these two reasons that the micro lending industry has failed & is now on the verge of collapse as borrowers are even taking out additional micro loans just to pay off the original ones.
The South African micro lending model is all but set for failure & ultimate collapse.
Applying For Micro Loans
If you have been unsuccessful or you don’t qualify for a micro loan you can apply under your spouse’s name.
Because each application for a micro loan is treated independently, your spouse could easily qualify even if your application is unsuccessful.
Finally, while it is relatively easy to get financial assistance, just remember that any loan will have to be repaid with interest so only take on extra debt in the way of a micro loan if you know you can repay it and that it is for a specific need or personal advancement & not just for impulse spending.