What exactly are cheap loans? Do they really exist in South Africa?
Well, to some people, cheap loans might refer to payday loans, affordable personal loans, low-interest cash loans, quick loans, and the list goes on and on…
So, I want to ask you, what does it mean to you – personally?
What Are Cheap Loans?
Cheap loans are unsecured-personalized credit that people really need with a low-interest rate. Whatever amount you qualify for, can afford to manage it month to month, is a cheap loan for you.
These loans are mostly offered at a fixed interest rate, for the convenience of the customer.
Payday loans are not cheap loans – here’s why
Many people tend to think payday loans are the cheapest loans because you can quickly re-pay them. But they’re wrong.
Payday loans are sometimes the most expensive loan types. They include a lot of risk factors with the loan application.
They’re offered at the highest interest rate, in a very short period of time to repay.
Now: How does one find a cheap loan or personalized easy loans?
The quickest way to finding cheap loans is to have good credit.
Here’s the deal.
When credit providers believe in you, they’re likely to offer you the best rates because you’re going to pay the money as agreed.
You can start by checking the loan comparison websites such as Hippo.co.za and CoMoney.co.za. They will help you customize and design the loan however you desire. Compare and select the best deal that fits your budget.
Here’s a Good Example of a Cheap Loan
You have multiple loans – home, vehicle, student, and other personal loans which are heavy on you month after month.
You can consolidate these loans into one central loan. A loan with a low interest rate. Even though you will pay more for the loan, at this time of your life, this would be considered a cheap loan.
And before taking the loan, consider the annual percentage rate (APR) for the loan.
Remember, there will always be costs involved when borrowing money.