It is natural that you always want to have stable finances and most of us will work towards having savings and a solid financial footing as a security in life. However, there are some situations that can make you suffer from financial problems – such as an accident at work or emergency car repairs. In these times, many people will look at lending facilities to help and, in desperate times, loan sharks. Financial problems may get worse if you choose the wrong lender so it is critical you take your time and pick the right lending partner for you.
Why is it important to find a credible short-term lender in South Africa?
There’s tough competition in the lending industry, so you must be careful in choosing a credible short-term lender. There are all too many Illegal or unlicensed lenders offering customers quick cash. This might seem appealing but will more than likely give you headaches and other problems that can cost your time, effort. You can also suffer from unscrupulous lending tactics, harassment and in the worse cases, charging you more money. Therefore, you must be careful to prevent scams and other forgeries from fake and illegal lenders.
Tips on Finding Reliable Lenders
- License number
It is essential to find a lender who is licensed by the National Credit Regulator. You can find a list of licensed lenders here: https://ncr.org.za/register_of_registrants/registered_cp.php. These lenders have been audited by the regulator to confirm their lending practices and policies are by the book. To maintain their licenses, they are checked regularly. Applying for a loan from a regulated lending means you’ll never be a victim of forgeries and harassment, which are commonly done by illegal lenders. Note – licensed lenders often show their NCR license number in the footer of the website, so make sure you look out for this.
Check the charge fees
Licensed short-term lenders usually discuss the loan application fee, average interest rate as well as a monthly service fee. If a lender isn’t disclosing this information, be wary, as they may be hiding something from you. Always choose an affordable loan that suits your budget and needs.
- Lending program
Before you apply, decide wisely which lender will work best for you. Some lenders provide different lending product features to meet the needs of their clients. For example, a lender may offer you the option to repay the loan back early without an early termination fee. This could be a great option for borrowers who need a loan to cover cashflow in the short term. Make sure you assess all the lender product features and factor these into your final decision.
- Background check
There are many bad lenders that take advantage of their clients. Therefore, you must conduct a background check of your potential lender to ensure that you’re only dealing with an honest and credible financial partner. Check out online reviews – these are a great source of information and can really help paint a picture of the lender’s credibility with borrowers. With this, you’ll not be having regrets in the future.
How to find a lending partner
You may get overwhelmed searching for lenders online as there is such an array of options. Scrolling through each one to assess the lender criteria can also seem a cumbersome task, especially when you’re in need of money and don’t have the time to wait. In such situations, we’d recommend using the services of Friendly Finance. They offer a useful and free search tool to help you with your financing needs. provide comprehensive details about the lenders who are licensed with the National Credit Regulators. They only give reliable information about lenders to meet the needs and standards of everyone. They also provide you with guidance on how to have a stress-free loan application process with a credible lender.
Good luck with your loan search and thanks for reading!
