Unemployment can cause quite the inconvenience. For many people, it means that they may find themselves unable to pay their creditors, which could lead to more financially troubling times. Having access to short-term emergency loans at such times can provide some much-needed relief. For South African consumers, fortunately the amendment of the National Credit Act has made it easier to gain access to these loans.
In the past, the only options available were from banking institutions. With the increasing popularity of microlending institutions, more people can get the types of loans suited to their needs. These lenders are often more willing to provide short emergency loans to individuals compared to banks, which tend to have stringent lending criteria.
Tell me more about short-term emergency loans?
These loans generally offer no more than R4000. Some do however offer up to R8000 to existing customers, depending on how well they have handled their debt repayments. These loans typically have a repayment period of 90 days. As long as you can afford to
They are ideal for emergencies and this means that they should not be used over a long term. They should offer flexibility and should be easy to access. With the advent of the internet, it’s become much easier to apply for loans online at any time of the day, from wherever you may be. This online process should take only a few minutes.
One of the major benefits offered by short-term emergency loans is that they generally come with same day payouts, which gives you, as the consumer the financial freedom you need to meet your needs. If you know that you will be approved and paid on the same day, you are assured of financial relief. Job searches can be quite expensive, so you could even use some of the money for searching for your next job.
Getting approval for this type of loan can help to alleviate stress. Once the money has been paid into your account you can rest assured that you will be able to afford to pay for your financial needs.
Before applying for short-term emergency loans you should check your credit score so that you know exactly what lenders see when you apply for credit. You can take the necessary steps to ensure that you improve your credit score so that when you apply again you have improved chances of approval.
If you are unemployed, financial turmoil can cause havoc in your life. Short-term emergency loans can be quite useful in such cases. You could use the loan to pay some of your debts off or to cover rent for the month. There are no limits in terms of how you can use the loan.
Your responsibility, whether you are employed or unemployed is to make sure that you pay the loan back on time. This will reflect positively on your credit record too.