Microcredit, micro finance, or micro loans, whatever you call it, has become an important financial product for South African people. For those facing a cash shortage of a small amount can apply for micro-loans online in South Africa from a reliable lending platform like FocusCash. This loan offers a small amount to meet pending expenditures, finance a small business, and become independent for a while. Here in this write-up, get to know how micro loans work and how you can apply for the same.
What is Micro loans South Africa?
Microloans in South Africa are small financial services available for the natives. With the help of this loan, you can arrange a small amount of cash for a month and repay in one single go. It’s an online loan option that allows you to apply from your smartphone or laptop from anywhere. It helps you get cash from anywhere and at any point in time. This loan allows you not to get involved in a cumbersome credit checking process, lengthy paperwork, and not even months of waiting period.
Can I get Microloans without Credit Checks?
Yes, you can get micro-loans without credit checks. This is due to the fact that it’s a small loan online. Lenders have nothing to do with your past credit mistakes and they offer you a loan amount based on your current financial condition and regular set of income. That means, you need not face a hectic credit checking process and not feel embarrassed, if having low credit scores in the profile.
Who is Eligible for Micro loans with No Credit Check in South Africa?
As far as the eligibility criteria of microloans in South Africa are concerned, it is essential for you to meet the following prerequisites.
- You must be at least 18 years of age.
- You must be living permanently in South Africa.
- You must have a valid monthly income source with proof.
- Must have a permanent resident proof of South Africa.
- Must have a valid bank account in your name.
How Does Micro loans Works?
To know the working process of microloans in South Africa, make sure to refer to the following steps.
Loan Application: First, fill out an online loan application available on the FocusCash platform. In the application, you have to fill in your name, contact details, monthly income, and its source.
Loan processing: Once filled, then process the loan application online to let lenders see your information and make decisions accordingly.
Fund Release: When the loan gets approved, you will get funds directly into your bank account and ready to utilize anywhere you want with ease.
Loan Repayment: Make sure to repay the loan amount in one single go or in small equal parts, depending on the condition provided by the lender.
Loan Extension: If your repayment profile is on the good side, then you can ask the lender to extend your loan for a few months.
What Are the Benefits of Micro loans?
There are several advantages of availing of micro loans online in South Africa. Some of the benefits are as follows:
A lifesaver during financial emergencies: This loan is certainly an emergency savior for you. It is due to the fact that you can apply it online at any point in time and arrange cash quickly when needed the most.
No need for collateral: It’s a collateral-free micro loan online in South Africa. Lenders will not force you to submit anything as security against the loan.
Sufficient time for loan repayments: As far as repayment is concerned, you will get months of time to pay back the acquired funds in small equal parts.
Bad credit is not a problem for microloans: As already mentioned, bad credit is not a problem here for you. With a low credit score, you can still apply for this loan.
What Are the Main Disadvantages of Micro loans?
Despite having several advantages, there are some downsides of micro loans which you can easily overcome.
Micro Loans Expensive: It’s expensive in terms of having a high interest rate compared to a personal loan. But you must understand the fact that interest rates is on the higher side due to lenders accepting your low credit score, not asking for collateral, and even approve loan based only on your personal information.
Offer Small Amounts: With micro loans online, you can get small amount of cash for few months. You cannot expect a big amount from this loan.
Some Frequently Asked Questions about Micro loans?
How Much Money Can I Get by Applying for Microloans In South Africa?
The amount of cash you can expect from micro-loans in South Africa solely depends on your repayment capacity and fixed monthly income.
Are Micro loans no credit checks with the lowest possible?
Yes, it’s possible to get micro-loans with no credit checking process. It’s because lenders approve your application based on correct and complete personal information shared.
Can I get Micro loans with a bad credit history?
Yes, you can certainly get micro-loans with a bad credit history in the profile. Lenders are only concerned with your fixed monthly income and the amount you save.
What should I consider before applying for Microloans?
Generally, you must consider your repayment condition, where to spend the loan amount, and surety to repay it on time before applying for microloans online.