We as normal citizens often run through bad or dry patches in terms of cash flow and finances, during these periods of dryness there are things that come up in our lives which need to be financed. Some of them are not urgent but some of the are very urgent and vital, this then does force people to borrow from banks, building society and micro lenders. The loans come in the form of cash loans. Cash loans are being granted all over the country all the time, the normal qualifying criteria used is a permanent job, credit clearness , three months bank statement, proof of income, proof of residence as well as a copy of ID.
Cash loan suppliers will then review the application and use the information provided by the applicant to do various credit checks, should the micro lender of the cash loan see that the applicant is worthy and fit to be borrowed the cash then the loan will be approved. In some instances a stop order facility is used in conjunction with applicant’s employer to deduct a monthly installment directly from the client’s salary. This method ensures good collection of installments when it is compared to collection via debit order, however sometimes it is not the case that the company where the client works cannot accommodate a salary deduction, this then forces a situation whereby a debit order via the client’s bank account will be used. Should the client fail to make payments the micro lender of the cash loan will take legal action against the client. If the lender has collateral then what ever the client has used as security will be lost by the client.
Micro lenders are known for using high interest rates in order to make huge profits from approval of loans, some micro lenders started out as such however now they are huge banks to be reckoned with. Shopping around for a cash loan is a very good idea because it will allow to make the best decision regarding interest rates as well as terms and conditions which can best suit your specific situation. As expected the best decision to make is an informed one.
By: Khanyisa Bubu