How to Avoid Being Ripped Off With Instant Online Payday Loans in South Africa

How to Avoid Being Ripped Off With Instant Online Payday Loans in South Africa

The No Paperless Deal is about to take over South Africa with its new electronic system of submitting loan applications electronically. You may not be aware but by law in South Africa you have to obtain at least two sets of documents when you apply for an online payday loans. One must be a valid bank account number and the other must be a credit reference number from your bank or credit union. These requirements are in place to ensure that the borrower has the money in hand to pay the loan back should his cash become insufficient shortly after the transaction. In a country where the banks have largely succeeded in gaining total control of the money market, this is a heavy burden to carry.

Https:// What is even worse is that the lenders are taking full advantage of this legislation and charging exorbitant interest rates

It is estimated that in just one week alone, an average Johannesburg housewife could have obtained instant online payday loans worth five hundred dollars that she did not have to pay back. These figures are especially disturbing when you consider that the average income for a working adult in this nation is around fifty thousand dollars a month. Clearly, these lenders are taking their cut from the very people that are supposed to benefit from their system.

This form of lending is also a cause for concern because it is very easy for the wrong people to qualify. As a rule, it is very easy for those people that have a bad credit rating or no credit rating to qualify for instant online payday loans. This is because the whole qualification process involves filling out an online application form. If your credit rating falls below a certain point, this automatically disqualifies you from receiving any type of loan from online lenders.

How to Avoid Being Ripped Off With Instant Online Payday Loans in South Africa

This does sound scary but it is true. If you meet the above criteria, you will automatically be disqualified from receiving any form of loan from any company in South Africa. In most cases, you will only be able to receive a PPI (Payment Protection Insurance) loan. The other forms of loans are not considered completely unfavorable. You are still able to have access to them, but you will be charged fees for these services.

It is very important that you do your research and apply for loans only through companies that have legitimate licenses and documentation to process. As an example, there are payday loans companies that operate completely outside the law and they have even received government licenses. These illegitimate payday loans companies prey on unsuspecting consumers. They know that they will be given a loan without providing any proof of income or employment. The lenders take advantage of this lack of paperwork and charge exorbitant fees.

There are a lot of lending companies that can offer instant online payday loans.

You are the victim of this scam. Do not allow yourself to be taken advantage of by these lenders. You should never submit any documentation of your employment or income. Also, do not submit copies of utility bills, bank statements, or paychecks. This will make it more difficult for you to receive instant online payday loans in South Africa if such information becomes available to these companies. If you are wondering how to avoid being ripped off, you can find information about payday loans in South Africa no paperwork online.

How to Avoid Being Ripped Off With Instant Online Payday Loans in South Africa

If you want to apply for one, you can check the websites of the different companies and compare their interest rates and terms. Before you sign up with a specific company, it is recommended that you carefully read their terms and conditions. This will help you choose the right type of loan for you. When you are able to compare the different options that are offered by payday loans companies, you will be able to decide which among them is most suitable for you.

Instant online payday loans are popular especially in South Africa. There are various reasons why people opt for these loans. Many of them get these loans so they can help them with their urgent financial needs. Since there are several payday companies operating in the country today, it has become easy to acquire the loans. However, you should not sign up with the first company that offers you a loan because there are many companies that do not have good terms.

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