Quick loans can get you out of a pickle, especially when spiralling costs and unforeseen expenses threaten to derail your monthly budget.
But what are quick loans? Why would you need them and how do they work?
If your credit record is poor, qualifying for a bank loan may be out of the question. Even if you do satisfy the requirements, bank loans can take a long time to be approved and paid out – by the time the paperwork is processed and the money transferred into your account, it might be too late to salvage a situation.
Quick loans are simply loans that don’t take days or weeks to be approved and paid out.
Unlike a typical bank loan, you may be able to secure a quick loan on the same day you apply for it.
There are countless scenarios where ordinary South Africans need quick loans.
As a small business owner, you may be facing cash flow problems, for instance because a significant client hasn’t yet paid for services rendered. You still have to cover your monthly overheads though, including fixed costs and salaries for staff.
If a family member falls, is involved in an accident or gets ill, you may need emergency cash to cover medical treatment. Even if you have medical aid, you could need funds to cover co-payments (the part of your medical bills that your medical aid won’t pay for).
Another scenario – your roof is leaking. The malthoid waterproofing membrane under the tiles has aged and split. Although you have household insurance, it doesn’t cover wear and tear.
Sometimes, a quick loan is a real solution.
If you need a quick loan in South Africa, there are two main types of options.
Unsecured quick loans providers offer loans based on factors like your credit status and current monthly income. These providers are similar to banks, but may process applications much faster. If your credit score is low but you still qualify for a loan, you’ll likely be charged a higher interest rate.
You’ll have to provide proof of income before the cash is transferred into your account; a process that can take a couple of days.
The second option is to obtain a secured loan. That’s simply a loan backed by some form of collateral you provide.
For example, asset-based loans are secured through a valuable asset you provide as collateral. Repay the loan, and the asset is returned to you. Default on the loan, and the asset might be sold to recoup losses.
There’s no need to check your credit rating, monthly income or any other information about your financial status because the loan is secured by the value of the asset. This makes it possible to provide very quick loans.
At lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork.
Often, we transfer funds into customers’ accounts on the same day they apply for loans.
Source: Funding Lamma
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