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Travelling is something many people dream about. Most times, they either do not have enough money to finance their fantasies or they’d rather use the cash for something else. With travel loans, you can now access enough funds to make that trip you have always wanted to go on. Within this article, we will describe all there is to know about travel loans so be sure to keep your eyes glued.

What is a Travel loan?

Travel loans are loans taken for incurring travelling expenses. Most lenders in the market provide travel loans for both domestic and foreign travels. Young working professionals often look forward to taking a break from their busy work lives. Most of them consider travelling to a new place for a vacation. 

Who is Eligible for a travel loan?

Because travel loans are like personal loans, only working professionals qualify for them. Some lenders in the market provide these to self-employed professionals with a steady income. The most common eligibility for these loans are listed as follows:

• The applicant must be at least 21 years of age.
• Salaried professionals must be employed in the job for at least 6 months before they can apply for these loans.
• Your credit score must be acceptable to the lender. Most lenders prefer individuals with a credit score of at least 700.
• Most banks have specific income criteria for applicants to avail these loans. It is better to have a monthly income of at least Rs.20,000.
• To avail pre-approved loans, the individual must already be a customer of the concerned bank.

What do I need to apply for a travel loan?

Most of the top credit providers in the market offer travel loans to customers with very minimal documentation. However, some crucial documents must be submitted (even electronically) while applying for travel loans. Some of these documents includes;

• Identity proof
• Address proof
• Income proof (payslip or IT returns)
• Photographs

The exact documents required by companies for travel loans may vary depending on the company. Therefore, it is important to enquire more and even visit the desired company’s website before applying.

How to apply for a travel loan?

The application process for travel loans mostly depends on the financial company itself. Meanwhile, the following process is peculiar among a great percentage of them;

• Applying for a travel loan is a very simple process. Most banks now provide online applications for personal loans.
• You can simply visit the official website of the lender and fill up your personal details to apply for a travel loan.
• Submit your documents online and get instant approval from the company.
• You may also visit the branch office of the lender and speak to an official for a loan application.
• If you need any help in the loan application process, you may check with the customer service department of the lender.

Things to Consider before Applying for Travel Loans

You must consider the following points before you applying for a travel loan for the purpose of travelling:

• First, you need to estimate the correct budget for your travel before applying for a loan. Do check the accommodation costs, ticket costs, food expenses, etc., online while applying for a loan. It is advisable to set the loan amount at least 20% higher than the trip budget you have estimated.
• Since travel loans are personal loans, they are offered with higher interest rates than home loans and other secured loans. There’s a need to research the market to find the best loan product suitable for your travel needs.
• Make sure that the EMI amount fits within your monthly budget. If you cannot afford the EMI within your monthly budget, you might face difficulties repaying the loan to the lender.

Top 4 platforms that offer Travel loans in South Africa

Below is a list of reputable loan agencies that offer travel loans;

• Standard bank
• Directaxis loans
• Justgo loans
• Bid vest bank

Conclusion 

As exciting as travelling and exploring might sound, it has a couple of its own downsides too. They occur most especially when you cannot plan and execute the entire process efficiently from the start. Be sure to let this article help you checkmate every aspect of your planning process and give a smooth travelling/loaning experience.

There are banks in South Africa that grant loans without collateral. You might not see this kind of loan offer in many financial institutions. Many borrowers will definitely pounce on loan offers like this. However, a good number of them may not qualify for such loans. Lenders know the parameter they’ll use to sift the worthy borrowers of such loans. How to qualify for loans without collateral, banks that offer them in South Africa are all-inclusive in this article.

What is a loan without collateral?

Loans without collaterals means you can get a loan without providing security for it. They also see it as an unsecured loan. The lender doesn’t ask you to provide any form of security for the loan they give you. Besides that, lenders risk losing their money to borrowers. So loans without collateral usually attract higher interest rates. Whereas loans with collateral have lower interest rates.

Where can I get loans without collaterals in South Africa?

There are banks that grant loans without collateral in South Africa. You must make sure that your choice lender provides loans without collateral before requesting it. This could help to save you some stress and time. However, the banks that offer loans without collateral are below.

Banks that grant loans without collaterals in South Africa

1. Capitec Bank
2. Standard Bank
3. Nedbank
4. Absa Group
5. First National Bank

What can increase my chances of getting loans without collateral?

There are things you should possess that can increase your chances of getting a loan without collateral. Your chances of getting a loan without collateral could be slim. This is because financial institutions need security for the loans they give out. They risk losing their money should you cannot repay the loan.

The following give you a better chance of getting a loan without collateral:

1. Have a good credit rating. This is usually what lenders assess before they give out loans to lenders.

2. Possess a low debt-to-income ratio. This has to help you support monthly repayments of your debts.

3. You should have a stable credit history. When you make timely repayments of debts severally for a few years. Lenders won’t find it difficult to give you loans without collateral.

4. Have a steady income. You’ll have a better chance to land a loan without collateral if you have a steady income. This shows the lenders that you’ll have funds to repay the loans without placing a collateral. 

You can also check out loans for non-salary earners in South Africa

How can I apply for loans without collateral in South Africa?

The application process of loans varies across financial institutions. Some financial institutions prefer the traditional means of application, while some others prefer online application.

The following are how you can apply for loans without collateral:

1. Apply online: When you apply online, you could finish all the loan application process at a go. You wouldn’t need to make a phone call. And you can get the loan within 48 hours. Check out online loans in South Africa

2. Bank application: You can apply through a bank’s online platform. But in most cases, they’ll prefer you visit them in person to complete the loan process. Besides that, they could insist you have an existing account in their bank before you can get the loan.  

3. Apply through a credit union: You must belong to a credit union before you can get a loan from them. Where you work or live in might be a determinant of your membership. But some credit unions overlook that and allow anyone to be a member.

How can I compare loans without collateral?

Compare loan offers of financial institutions before getting the loan you want. This will help you make the right decision about the lender whose offer suits you best.

The following are the features of loans without collateral that you can compare across lenders:

1. Check their Annual Percentage Rate (APR). It represents the entire cost of the loan. Also, it includes the interest rate and any fees the loan attracts

2. Know if they have fixed or variable interest rates. This is because many loans without collateral come with fixed interest rates. Pay a particular interest rate for the entire loan term. Whereas variable interest rate could change over the loan term

3. Ensure your APR translates to monthly payments. Compare your APR across lenders and know how you can fit it into your budget

4. Compare the time they disburse funds. Some lenders could fund a loan within 24 hours. Whereas some others could fund within 48 hours or even a week

Conclusion

Loans can help you solve problems, especially when you do not have enough cash in hand. Loans without collateral provides that freedom of getting a loan without risking your assets (collateral). However, loans without collateral most times come with higher interest rates. Before getting such loans, ensure that you are financially capable to repay them adequately.

Business in any form they might seem requires an adequate amount of capital to fund. We can see a business loan as a loan obtained for business purposes. The business is hereby obligated to repay the loan amount according to the term and conditions of the loan.

Function of business loans

A business loan is a borrowed capital that companies apply towards expenses that they are unable to cater for themselves. Sometimes business owners use business loans to pay for salaries and wages until their new company gets off the ground. Other companies use borrowed funds for office supplies, inventory, or business projects. You can also read about how business loan works in South Africa.

Requirement for obtaining a start-up business loan

Getting a business loan in South Africa is easier when you prepare yourself well enough for the requirements. The requirements process for a business loan might differ. This depends on the financial provider you eventually decide to go with. We consider the following requirements vital and apply to almost all financial service providers;

• Business registration documents.
• A great credit score.
• An efficient collateral. To qualify for a business loan, you may have to provide collateral to back the loan.
• It is important you provide the financial statements and management accounts prepared by the business.

Some financial credit providers might require you to own an active account with them to qualify for a business loan. This is usually the case for banks. It is important to conduct a research into the credit provider you are considering before going ahead to apply.

Things to ensure before applying for a start up business loan

A great number of financial institutions offering business loans ultimately want to know how you intend to invest the money just so they are sure of repayments. Knowing this, be sure to take your time to prepare the important documents to ensure a smooth loaning experience.

To apply for a business loan, you will need to;

1. Prepare a business plan

Your business plan should be a detailed explanation of the size of the opportunity and show how you’ll take advantage of it. It should also be a representation showing the lender how the loan would be used. Lastly, key you should identify key risk areas with a plan for managing them.

2. Do your financials right

Showing your lenders you’re in charge can be an advantage to successfully getting your loan application approved. Achieve this by providing a budget showing how fast you’ll afford repayments. Be sure to ensure the budget is realistic and based on sound assumptions.

3. Creditworthiness

Banks loves to see that you have a great record of paying bills and debts. During assessment, they tend to  check out your credit rating or credit score in business and possibly your personal life.

4. Security

Not all loans require security. In a situation where you want to borrow a lot, you’ll be expected to provide some form of security. The risk is that the bank can claim the property if you default the repayment term.

Top 5 business loan providers in South Africa

When financial emergencies occur, business loans can be the most convenient option to get fast cash. But not all credit providers’ lenders are reputable. Below is an insight on a few efficient business providers in South africa;

1. Lulalend 

Lulalend is not just a company. It’s a belief. A belief in the power of small business, making a difference, building a better solution and striving for excellence. The company focuses a great percentage of its resources on empowering businesses across South Africa. With the sole aim of providing businesses with the funds, they need to start up and grow. 

2. ABSA business loans

Listed on the JSE, the Absa Group is one of Africa’s largest diversified financial services providers. Committing a great percentage of their resources on finding local solutions to uniquely local challenges. They are driven by the zeal of adding value and improving the lives of Africans. To this end, the Absa group offers a wide range of retail, business, corporate and investment and insurance solutions. 

Also check out Absa home loans and learn everything you need to know.

3. FNB business loans

FNB is the oldest bank in South Africa, and can be traced back to the Eastern Province Bank formed in Grahamstown in 1838. They offer a wide range of credit products of which business loans happen to be one them. This form of credit is Suited to FNB Business Account holders looking to raise capital to inject into a business. Irrespective of the stage you are in your business, be it a start-up or an already existing business, FNB can be the best choice for you.

You can also read about FNB student loans if you will like to get student loadn

4. Standard bank business loan

Standard banks in their utmost will to serve have put together a soothing credit service for start-up and existing businesses. With standard banks, you can cater to your business’s cash flow seasons with a loan. This keeps your repayment terms the same so you can budget effectively. 

5. Pollen finance

Established in 2015 to service the growing need of SMEs  to access funding for business growth. Since inception, they’ve helped both small and large businesses with up to R1 Million in short-term loans. Fast funding is one of their vital components of our success.

Conclusion

It is known that the most difficult stage of establishing or creating anything of value is the beginning. Same accretion is applicable to starting up a business. Most times, prospective entrepreneurs with a great business are faced with financial restraints. If the case is so, getting a business loan can go a long way in mitigating these difficulties.  Now you can access business funding from the comfort of your zone provided you possess all the needed requirements. So cool, isn’t it?

Nothing is as soothing and comforting as the peace of mind that comes with living in a property you know is fully yours. Apart from the fact that you can do with it whatever pleases you in terms of decorations and settings, it is also a long term investment. By buying a home, you are investing in an asset for yourself rather than a property management company. 

One of the major factors holding prospective homeowners from actually purchasing  a home is finance. Finance is a setback to a lot of sectors. Now, have you always wanted to own your home but have limited resources to make it happen? Loans are now available to supplement your financial difficulties. How about we quickly look at what a private home loan entails before diving into the different kinds of lenders.

What is a private home loan?

A private home loan, also known as a mortgage loan, is a form of loan created between private individuals for the purchase of real estate. The lender could be a friend, family member, colleague, or investment firm. He loans the money to the borrower just as a bank would, securing themselves with a mortgage note or comparable contract. 

A private loan has on major advantages over other forms of loans. It bypasses a lot of hurdles and red tape that you can associate with getting a loan from a traditional mortgage lender.

Benefits of a Private home loan

The private loan system has a couple of advantages over the traditional method of obtaining a loan. Some of the benefits includes;

• Unlike the bank loans, there is far less paperwork, underwriting criteria, and borrower qualifications for private loans.
• Private loans do not consider credit scores and income verification before granting a loan.
• In most cases, the application and approval process is much quicker and easier than it would be with a traditional lender.
• Private home loans come with far lesser or no additional fees at all apart from the loan interest.

Additionally, arranging a private loan with a trusted friend or family member can be a great way to finance a home purchase without any money going to a middleman.

Requirements for a private home loan

The requirements for getting a private loan might vary depending on the financial service provider. The following requirements are obtainable with a great percentage of South African credit providers;

1. Valid South African ID
2. Proof of income
3. Schedule of monthly household income and expenditure
4. Proof of address (A bill in your name which quotes your address)
5. Offer to purchase
6. Bank statement

Top 5 Private home lenders in South Africa

The ever available credit service South Africa enjoys through different finance bodies is something to be grateful for. However, to enjoy these advantages, it is important to know which service providers are available. The following is a list of 5 credit providers that can off;

Capitec loans

Listed on the JSE, the Capitec Bank is one of Africa’s largest diversified financial services providers. Committing a great percentage of their resources on finding local solutions to uniquely local challenges. They are driven by the zeal of adding value and improving the lives of Africans. To this end, the Capitec loan offers a wide range of retail, business, corporate and most especially home loans.

FNB loans

FNB is the oldest bank in South Africa, and can be traced back to the Eastern Province Bank formed in Grahamstown in 1838. Two things in particular stand out FNB platform. The first is a story of survival – different circumstances in South Africa have posed many great challenges in our history, all of which FNB has successfully met. Apart from the fact that they are equipped with high grade loaning product, they have one of the best terms for home loans. 

Sentinel homes

This is another great option for prospective home owners. Sentinel Homes is an alternative home financier to banks and other home loan providers serving the Western Cape and Gauteng areas. They are the first South African company to offer an alternative to bond finance in the open market. The company is the brainchild of the team at Combined Finance, which has been operating as investors and financiers in the real estate industry since 2013.

Ned Bank

Ned bank is one of South Africa’s four largest banks. Whether you’re buying, building or switching your loan, Ned bank is available to assist you and help you take each step in your property journey with confidence. Ultimately, they are focused on ensuring  you’re able to come home, every day, to your dream property.

Standard bank home loan

Standard bank is a deeply rooted financial service provider. A home loan from standard bank can provide you with a range of flexible options to help you make your next big move.  Whether you plan on becoming a homeowner, a home builder or are already a homeowner.  Their differentiator is their long term efficiency and commitment to Africa.

Conclusion

Private mortgages can be helpful for certain situations and can be a creative solution for borrowers. Especially those who may have difficulty borrowing or simply need the flexibility private lending offers. Weigh the risks to rewards before entering into a private agreement, and seek professional help for guidance as needed.

South Africa boasts a thriving fintech industry that benefits not just the country but the whole African continent. The country has long served as a significant trade investment and commercial center for the African continent’s international trade. Its two global cities, Johannesburg and Cape Town make it distinctive. Through the course of this article, we will be looking at six different fintech companies in South Africa.

What is Fintech South Africa 

The term “fintech” refers to financial technology. Fintech businesses are those that seek to enhance and computerize the distribution and usage of financial services.

Fintechs are corporations, company owners, and normal people who employ specialized software and algorithms on computers and, increasingly, smartphones to help them manage their financial operations, procedures, and lifestyles.

Why does South Africa have an emerging fintech hub?

First, South Africa is part of the BRICS group, which also includes Brazil, Russia, India, and China. Each of the five countries has a sizable population and a developing economy. Despite current economic difficulties in some of them, the five countries nevertheless have enormous populations, developing markets, and prospects.

Despite recent setbacks, South Africa has a well-established ecosystem that encompasses not just its financial services industry but also a sizable market. For example, Johannesburg, South Africa’s largest city, is home to some of the continent’s most powerful banks and financial institutions, including Standard Bank Group, FirstRand, Absa Group, Nedbank Group, and Investec, making it a potential fintech magnet.

Indeed, several of the top 10 largest banks on the African continent by assets are South African.

South Africa’s second-biggest city, famed for its magnificent scenery and tourism, is also a major participant in the technology sector. The Western Cape, which includes Cape Town, is home to the bulk of the industry, accounting for 47 percent of all digital start-ups, with Gauteng, which includes Johannesburg, coming in second at 44 percent. Furthermore, Cape Town is home to 75% of the country’s venture capital agreements.

How many fintech companies are in South Africa?

In 2021, 154 fintech startups were located in South Africa. The country counted the highest number of such companies in the Africa region. Nigeria followed closely with 144 fintech, while 93 had headquarters in Kenya.

Fintech companies in South Africa

There are 154 FinTech startups in South Africa. Here is a list of the 7 most exciting ones;

Jumo   |Online marketplace for consumer & business loans and mobile-based banking channels

Jumo is an online marketplace for consumer & business loans and mobile-based banking channels. It offers lending products that enables entrepreneurs to avail themselves of loans & asset finance. The loan amount, life cycle, and repayment method can be configured based on the individual’s requirements. It offers an AI-powered technology stack that connects banks with traditionally inaccessible customers and enables banks to deploy loans, savings, and insurance services.

Company Overview

Founded Year

2015

Location

Cape Town (South Africa)

Funding

USD 305M [Funding Details]

Investors

P65 Ventures, Athena Capital, Vostok Emerging Finance and 13 Other Investors [Investor Details]

Yoco   |Payment processing solutions for businesses and merchants

Payment processing solutions for businesses and merchants. Its product includes NFC-enabled and hardware-based card machines, payment gateways, link-based payments, and more. It provides Yoco App, an app-based platform for managing sales and tracking performance. App is available on iOS and Android devices.

Company Overview

Founded Year

2015

Location

(South Africa)

Funding

USD 107M [Funding Details]

Investors

Futuregrowth, The Raba Partnership, Uncovered Fund and 9 Other Investors [Investor Details]

Ozow   |Payment processing solutions for businesses & merchants

Ozow offers payment processing solutions for businesses & merchants. It offers solutions such as payment gateways, QR-based payments, invoice payments, link-based payments, and more. It enables users to make online payments via credit/debit cards, bank transfers, and wallets. It features OzowPIN for payment confirmation in order for doing banking transactions.

Company Overview

Founded Year

2005

Location

Johannesburg (South Africa)

Funding

USD 48M [Funding Details]

Investors

Endeavor, Tencent, Kalon Venture Partners [Investor Details]

GetBucks   |Online platform for payday loans

Online platform for payday loans. It offers unsecured short-term loans that can be used for multiple purposes. Users must provide personal information and apply for the loan. Once approved, the funds are transferred to the registered bank account.

Company Overview

Founded Year

2003

Location

Pretoria (South Africa)

Funding

USD 25M [Funding Details]

Investors

NMB Bank, TLG Capital, ALCB Fund [Investor Details]

Adumo  |Provider of payment processing for businesses

Payment processing services for businesses are provided by this company. It provides a digital payment solution for shops, multinational corporations, entrepreneurs, and traders to accept online payments from clients through a variety of payment methods. 

It also offers working capital loans to help businesses sustain cash flow, as well as consumer interaction platforms, business, in-store consumer credit platforms, retail point of sale software and hardware, customer analytics, and electronic voucher distribution, among other things.

Company Overview

Founded Year

2009

Location

Bryanston (South Africa)

Funding

USD 15M [Funding Details]

Investors

Apis Partners, Crossfin, International Finance Corporation and 1 Other Investors [Investor Details]

Conclusion 

South Africa has long played a significant role on the African continent, and despite present issues, the country’s innovations and skills will hopefully continue to be seen in the future – both in fintech and in the broader economic development of the global economy.

Emergencies happen every time. One can never be too prepared for the day they might occur. We can only try to put measures in place to cater for these emergencies, just in case they ever occur when we least expect them. Credit life insurance is a form of life insurance design to pay-off a borrower’s outstanding debts if the borrower dies or defaults. Here’s a deeper look at all there is to know about Credit Life Insurance;

What is Credit Life Insurance?

It is an insurance that provides security should you cannot repay your debt because of retrenchment, disability or death. Banks, mortgage closing, and other financial institutions typically sell it. 

The credit life insurance policy is meant to settle the debt either in part or in full to the bank or creditor. It protects both you and your loved ones from the strain of having to service debt when life happens.

How does credit life insurance works

Credit life insurance protection is a solution that helps ensure that the insurer covers your credit repayments when unforeseen circumstances happen. It comes into play when you impair your ability to earn an income or repay your loan amount. For example, if you cannot earn an income because of disability, critical illness and retrenchment or death. 

There are different types credit life insurance that may apply to your credit agreement so is it advisable to check your policy terms, and the protection provided by your particular policy, to help you make the right decision about how to manage your repayments in these difficult times.

It is important to note that, with credit life insurance, the lender is the sole beneficiary and not your loved ones. If you die, the insurer will pay out the proceeds to the lender to settle your debt.

Benefits of Credit life Insurance

Credit life insurance can be a great tool for taking full responsibility for your actions and reducing the debt burden that might rest on your loved ones. Some major benefits of Credit Life assurance include the fact that they;

Pays off your debt when the unexpected happens.

Usually, they appoint an executor to your estate when you die. This may involve selling off your assets to repay any outstanding debts.

Since we dedicate a credit life insurance policy to paying off a major debt. It can simplify the process and potentially leave more assets to pass on to your loved ones from your estate.

Protects cosigners, joint account holders or spouses in community states

Without a life insurance policy in place, your family or loan cosigners might pay off any shared debts if you die.

If you’ve taken out a loan with someone else or share a bank account, a credit life insurance policy could protect them financially in the event of your death.

No medical exam required

Credit life insurance isn’t medically underwritten. This means you don’t need to fill out a health questionnaire or take a medical exam. Because of that, it can be easier to qualify for coverage. 

Especially if you have a health condition or a family history of health conditions working against you. And unlike traditional life insurance policies, your health won’t influence your premium.

It provides peace of mind

Credit life insurance can be a great option if, for whatever reason, you cannot get a regular life insurance policy. Credit life insurance rarely requires a medical exam. So, if you’ve been denied life insurance, and you’re worried about how your debts would be repaid in the event of your untimely death, disability, or unemployment, you may have good reason to consider a credit life insurance policy.

Companies in South Africa that provide Credit Life insurance.

Below is a comprehensive list of top-notch financial service providers that offers Credit Life insurance as part of their product.

Old Mutual Funds

Old mutual fund has been in operation for a very long time, with up to 300 branches nationwide. In these years, they have consistently provided standard financial services offering loan services for clients in South Africa. Click here for more information about their credit life insurance.

Standard Bank

Standard bank is a deeply rooted financial service provider. They’ve been serving and supporting their clients, employees, and communities for over 156 years now. With a presence in 20 African countries and key global markets, their differentiator is their long-term efficiency and commitment to Africa. Click here for more information about their credit life insurance.

Sanlam Loans

Sanlam is a complex financial service group that has been in creating value for its stakeholders since 1918. With their headquarters in South Africa, they are in full operation across several selected global markets. Sanlam is classified as a domestic systemically important financial institution in South Africa. Click here for more information about their credit life insurance.

Ned Bank

Nedbank is a top financial institution in South Africa. Operating with so much dedication to providing quality services to its members. They have taken out time to integrate the credit card into their financial product to serve the increasing numbers of customers. Click here for more information about their credit life insurance. 

Conclusion 

Credit life insurance is a financial policy that pays off one debt if you die. It is something you typically consider when you’re taking out a loan for large purchases like a car, home or personal loan. Be sure to check out the terms and conditions of the financial provider before signing up with them.