🧐 Understanding Personal Loans

📝 Personal loans are like borrowed money for things you need, such as paying bills, fixing your car, or taking a trip.

📝 They’re different from other loans because they don’t have a specific purpose like buying a house or a car. With personal loans, you have more freedom in how you use the money.

📝 You just agree to pay it back in smaller amounts over time, usually with interest, which is an extra amount you pay for borrowing the money.

🤔 What are your Personal loan options?

📝 There are two main types of personal loans: short-term and long-term.

📝 Short-term loans, lasting from 30 days to 24 months, include fast cash, payday, bad credit, and small purchase loans. Credit cards and overdrafts also fall into this category.

📝 Short-term loans can range from as little as R100 to as much as R500,000, depending on your ability to repay based on your income and expenses. Since these loans are unsecured, they often have higher interest rates, influenced by your credit rating.

📝 On the other hand, long-term loans have a duration of 24 months to 10 years, and they involve larger amounts. Most long-term loans are secured by collateral, meaning the lender can take possession of the asset if the borrower fails to repay the loan.

🤔 What Are Collateral Loans and How Do They Work?

📝 Collateral loans are when you borrow money and give something valuable as a guarantee to the lender. This valuable thing, like your car or jewelry, is called collateral. If you can’t repay the loan, the lender might take the collateral to recover their money. It’s a way to make the lender feel more secure about lending to you.

🙋‍♂️ Direct Lenders for Personal Loans