Bounce back loans

Bounce back loans are one of the more interesting financial products to emerge in recent years. These loans, also known as structured settlement loans. They are essentially agreements to sell future payments from personal injury claims or structured settlements as lump sums in exchange for cash upfront. Here’s what you need to know about bounce-back loans and how they can help you when you have no other options left.

What are bounce-back loans?

Essentially, bounce back loans are temporary loans for people who have been turned down for financing from traditional sources. With a bounce-back loan, you would provide your property as collateral until the debt is paid off in full. At first glance, these loans seem like an excellent option to consider. 

However, there are some issues with them that might not make them an optimal solution. For example, bounce-back loans can be more expensive than traditional financing options and offer only short-term solutions for long-term problems.

Also, if the borrower defaults on their loan, they could lose their home or apartment. If you’re still considering getting a bounce back loan, it’s important to understand all of the pros and cons before moving forward.

How do I qualify for a bounce-back loan?

To qualify for a bounce-back loan, you must be willing to accept your collateral as part of the agreement. They will also ask for proof of employment and evidence that you can repay the loan. Depending on the loan, you may need collateral in addition to repayment evidence.

These loans have become more popular because they are easier to get than traditional loans with strict credit requirements. A downside is that there is not much flexibility with these loans. This defect is compensated by their lower interest rates.

For those who don’t have good credit or an established history of repayment ability, these loans are an option worth considering.

How to choose a Bounce Back Loan

Keep these three things in mind when choosing a bounce-back loan. Is the interest rate reasonable? Do they charge any origination fees? What is the payment schedule? To sum it up, a bounce-back loan is worth looking into if you are cash-strapped and can afford the monthly payments. If you can’t keep up with the payments or your credit score has dropped too low, a bounce-back loan may not be right for you. For a great option, check out FNB bounce-back loan.

The Pros of Using a BBL

Pros of a bounce-back loan

  • No collateral is needed
  • Lower interest rates are offered in exchange for a longer term length (12 months minimum)
  • The business can be eligible for these loans if it has been in operation for 12 months or more, with at least six months of consecutive, positive net income.
  • Interest rates will vary depending on the industry type but typically range from 10% to 15%.
  • A downside is that the company will not have access to its capital until the end of the contract period.
  • BBLs comes with an automatic six-month extension option at the end of their contracted time period if necessary.

The Cons of Bouncing a Loan

Refinancing your loan is one way to lower your monthly payments, but there are downsides. If you’re someone who’s good at handling their money responsibly and you need a short-term solution, then refinancing may not be right for you.

Also, if you don’t have great credit or financial stability, the interest rates might be too high. Refinancing can help if you want to purchase a new car or home in the near future as well because it’ll allow you more time to save up for the down payment on your own.

What do my repayments look like?

Typically, the monthly repayments on a bounce-back loan are 25% of your gross monthly income. This means that if you take out a Rs500 bounce-back loan at 0% interest rate, the repayment would be Rs125 per month. In addition, you can only borrow up to 15% of your net salary and interest rates are variable (can increase or decrease as borrowing increases).

What if I can’t afford the repayments on my bank loan?

If you can’t afford the repayments on your bank loan, don’t worry! There is a way to keep your debt from being reported as delinquent and hurting your credit score. This option is known as a bounce-back loan or deferred interest loan. To qualify for one of these loans, you must have at least six months before you need the funds, no previous late payments on your account, and currently, be able to afford the monthly repayments.


So you’re in a tight spot and need cash. There are plenty of options out there, but bounce back loans could be just what you need. They have reasonable rates, give you the chance to rebuild your credit score, and can be approved in as little as one hour.

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