05 Mar All you need to know about government employee loans
As an individual keen on getting access to a personal loan in South Africa, you have a range of options from which to choose, such as government employee loans. In the past, banking institutions were the sole providers of loans, but with innovation, financial regulation changes and technological developments there have been significant changes.
Applying for a loan may be due to a range of reasons. This may be because you need to pay for school fees or you need to cover rent for the month. Whatever your reasons may be, you need to ensure that you can afford to repay the loan and that you have checked your credit record prior to applying.
More micro-lending institutions are also offering financial solutions, so individuals no longer have only banks to rely on.
Government employee loans have become available in recent years. These loans are specifically designed for individuals who are employed by government. Under normal circumstances, applying for a loan means that individuals need to provide proof of employment. This provides a form of proof that an individual has a reliable source of income, which means that they will be able to afford monthly repayments.
As a government employee, you have the advantage of having stable employment, which means that you are less of a risk to lending institutions.
Main factors considered during the loan application process include employment status as well as previous payment history.
What are the advantages offered by government employee loans?
Applying for government employee loans is easy. As an applicant, you typically have to provide your bank account details, a valid South African ID as well as your Payslip.
You can apply at any time of the day. By completing an online application you can avoid having to wait in long queues or to have to deal with multiple consultants.
As a government employee, you are likely to be considered a low-risk client, which means that the application process may be simpler for you.
If you have been blacklisted before, you may also apply for government employee loans. As long as you can prove that you can afford to pay for the loan, the application process will be simpler.
Access to loans through annual bonus
South African government employees are guaranteed a bonus each year. The good news is that government employee can apply for a cash loan on their bonus.
There are specific lenders that specialise in the provision of government employee loans. Government Loans is a lender that offers loans of up to R150 000. In order to qualify for a bonus loan you have to be employed for 2 years or more by government. You also cannot be over-indebted when you apply.
Loans are unsecured, so there is no security that needs to be provided as surety for the loan. Additionally, blacklisted individuals who are government employees are considered and have good chances of approval.
Government is considered a reliable employer and salaries are considered high enough for government employers to be able to service their loans.