There are occasions when a loan is required and a Mashonisa loan may seem like the only option for you in Benoni. Most of the time though, the situation is simply due to the lack of time to contact all available lenders. This is where MyLoan can help.
Representative example: Estimated repayments of a loan of r30,000 over 36 months at a maximum interest rate of 29.25% apr would be r1,381 per month including fees. Repayment terms can range from 2 - 72 months. Myloan is an online loan broker and not a lender. Our service is free, and we only work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 19.25% apr, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant's credit score and other factors at the lender's discretion.
The maximum annual interest rate including fees is 27.5%. Repayment terms can range from 1 - 72 months.
MyLoan is an online loan broker and not a lender. Our service is free and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants’ credit score and other factors at the lenders’ discretion.
Are Mashonisa Loans, or Loan Sharks, Legit?
Loan sharks are not legitimate or legal lenders. They typically operate outside of the established financial industry and engage in predatory lending practices. Loan sharks often target individuals with limited access to traditional loans or who may be in desperate need of immediate cash.
Loan sharks charge exorbitant interest rates that far exceed legal limits, often accompanied by unfair and exploitative terms. They may resort to intimidation, harassment, or even violence to enforce repayment. Dealing with loan sharks can lead to significant financial and personal harm, and it is highly advisable to avoid them at all costs.
Instead of resorting to loan sharks, it is recommended to explore alternative options for borrowing money, such as banks, credit unions, online lenders, or seeking assistance from reputable financial institutions that offer short term loans. These options offer regulated and transparent lending practices that prioritize consumer protection and fair terms.
This Is How Mashonisas Operate In Benoni
After all your wage deductions, if you take home R2,800, you'll probably be able to acquire a R1500 loan from the unregistered loan sharks.
You run out of money near the end of the month and have an unexpected expense, so you take your pay stub to those who guarantee quick and cheap cash loans. Then Mashonisas force you to sign papers giving them access to your bank account so they can deduct the principal plus the excessive interest from your account.
You require R1500. Thus the money is given to you in cash when applying for the loan. After receiving your salary at the end of the month, the Mashonisas deduct an amount of R1500 plus interest of around R600, leaving you with only R700 in the bank and a new month. As a result, you're back at Mashonisa's door, searching for the following loan. Ultimately, you end up stuck in a brutal credit trap that continues from month to month.
Why Loan Sharks Are Dangerous
All lenders must be authorized and regulated by the National Credit Act (NCA) to lend money legally in South Africa. This ensures that lenders follow specific regulations and that borrowers are protected somehow.
Loan sharks are illegal since they are not regulated. Loan sharks, unlike authorized lenders, may not feel obligated to follow any of the NCA guidelines, putting borrowers at risk.
Loan sharks typically target individuals who are unable to access traditional forms of credit, often due to poor credit history or financial instability. They tend to operate outside the legal lending framework and exploit borrowers in need by employing predatory practices. Here are some common characteristics of loan shark operations:
1. High-interest rates: Loan sharks charge excessively high-interest rates that far exceed legal limits, trapping borrowers in a cycle of debt. These rates can be several times higher than what legitimate lenders offer.
2. Unfair terms and hidden fees: Loan sharks may impose unfair terms, such as exorbitant fees, undisclosed charges, or penalties for late payments. They often use complex and confusing loan agreements to exploit borrowers' lack of understanding.
3. Lack of transparency: Loan sharks often operate without proper licensing or registration, making it difficult for borrowers to seek legal recourse or protection.
4. Intimidation and harassment: Loan sharks commonly use aggressive tactics to enforce repayment, including intimidation, threats, harassment, or even violence. They may target borrowers' personal and professional lives, causing immense stress and fear.
5. Limited documentation: Loan sharks may not provide proper documentation or contracts, making it harder for borrowers to understand the terms of the loan or dispute any unfair practices.
It is crucial to avoid dealing with loan sharks as their practices are illegal and can lead to severe financial and personal consequences. Instead, consider seeking assistance from reputable financial institutions, credit unions, or community organizations that can offer legitimate and regulated lending options.
Other Ways Of Borrowing - MyLoan Alternative
When life throws you a curveball, knowing where you can get money quickly and how long it takes to secure a loan from various sources comes in handy. You can use a loan to pay for repairs, health care, and other issues.
So are there any alternatives to taking out a loan from a loan shark? Yes, MyLoan is a safer alternative to access money or cover costs, even if you have a low income or a bad credit rating.
With less paperwork, it’s easy to apply for credit with MyLoan, and compared to the Mashonisa loan, the funds are disbursed quickly and at a low-interest rate. All you have to do now is meet the eligibility criteria.
There's only one application form to fill out. Once you apply, we’ll forward it to several lenders who will review it and, if you qualify, get back to you with an offer. You choose the most suitable loan for you and obtain funds after completing the application.
Here Is Why MyLoan Is A Better Option
Flexible Loans
You can only take out a loan for a particular reason. When you take out a mortgage loan, for example, you can only use the funds to purchase a home. Loans provided by our partners work for various purposes, including debt consolidation and medical bill payments. Loans through MyLoan are also very flexible when it comes to interest rates, repayment terms, and loan amounts.
Several Options To Choose From
Thanks to MyLoan, South Africans now have many lending alternatives at their fingertips. The application and approval processes are both short, allowing you to acquire a loan when you need it without having to wait long. Several lenders are dedicated to making borrowing as simple as possible in South Africa, with simple applications requiring no paperwork. Online loans are available to everyone in all the country, irrespective of where you live.
With MyLoan, You May Even Apply With Bad Credit
Having a good credit history can help you get approved for a loan. Having bad credit, on the other hand, can make it harder to obtain a loan. The good news is that you may still apply for a loan through MyLoan even if you have bad credit. This is especially true if you have a steady source of income and meet the lender's minimum lending requirements.
Get Pre-Qualification Loans
Prequalification is a type of inquiry that allows you to discover more about a lender's requirements without affecting your credit score. Furthermore, understanding what kind of loan you qualify for will give you much-needed peace of mind. It will also help you determine what price range to look within.
Fast Approvals
Depending on the turnaround time, you can receive the loan the same day or the next day after approval. This is a lifesaver if you have a financial emergency.
MyLoan is a leading loan comparison website that aims to make the lives of many Benoni residents and South African nationals easier. MyLoan lending services are simple to use and free. All of our partner lenders are licensed and offer loans that comply with the National Credit Act (NCA).
To help you choose the right loan, we provide an estimate of the cost and show you different loans you can apply for.