Loans for Blacklisted People in South Africa (10 Best Lenders)

Are you Blacklisted and need a loan urgently in South Africa? Many applicants seek to obtain a loan but are unable to do so due to a loan’s poor credit score.

Bad credit loans are designed specifically for people who are experiencing this problem. Any individual with a low credit score can readily obtain one of these loans by pledging collateral with a bank or lender.

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Many lenders in South Africa are hesitant to lend to people with low credit scores since there is a larger danger of them defaulting on payments.

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Image Credit: Getty Images

A low credit score indicates that an individual has a limited repayment capacity, making it difficult for them to find a lender willing to lend to them.

The good news is that there are several urgent loans available for blacklisted South Africans! Nothing can stop you from completing your bucket list with an Instant Personal Loan, even if you are one of the loans for blacklisted people.

Because it can be used for a variety of purposes! It could be preparing for a dream wedding or preparing for a trip. With speedy approvals on Personal Loans, one can make their dreams come true in the twinkling of an eye.

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20 Lenders for Loans Bad Credit People in south Africa 2021

Learn about loans for people with terrible credit in South Africa to make acquiring funding while blacklisted a breeze. We’ll explain your options and how to get approved for a loan to boost your credit score.

There are loans specifically created for South Africans with a low credit history available online, but they are typically more expensive than standard personal loans.

Even if you are blacklisted and have a low credit score, you can still acquire a loan if you can demonstrate that you can make the repayments or, alternatively, that you can put up some sort of collateral.

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1. Mulah

  • Loan Type: Bad credit loans
  • Interest Rate: 38%
  • Loan Amount: up to R4,000
  • Repayment: 24 hours to 30 days
  • Decision: 6 hours
  • Website
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Image Credit: Getty Images

This is one of the lenders of loans for blacklisted people in South Africa; this lender offers the lowest interest rates on their loans, so you’ll still have enough money to go about your daily life.

Mulah will ask you if you agree to their payday loan fees before accepting your loan. If you believe you cannot afford their credit services, it is important to discover another option to obtain the funds you require.

You will be required to furnish bank statements and payslips to demonstrate your ability to handle more credit in the form of one of Mulah’s bad credit loans.

It is usual for households to pay for their homes, cars, and a variety of retail accounts. As a result, it is critical to constantly confirm affordability before approving a loan.

They will be able to decide whether you can afford to pay another loan based on your current loan obligations.

Mulah employs a debit order method to collect loan repayments. You won’t have to miss work to pay off your loan, and Mulah will get their money on schedule as well. Everyone benefits in this manner!

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2. Hoopla Loans

  • Loan Type: Bad credit loans
  • Interest Rate: 20 – 112% p/a
  • Loan Amount: up to R250,000
  • Repayment: 2 months to 60 months
  • Decision: Between 5 and 45 minutes
  • Website

You’ve been blacklisted and need a loan, but you have lousy credit. This is where Hoopla comes in. Hoopla Loans offers rapid internet loans that can be used for anything you want.

They provide loans ranging from R100 to R250 000. These loans are disbursed directly into your bank account, with no delays. They also have a very high approval rate and don’t care what you’ll use the money for – it’s entirely up to you!

Hoopla’s bad credit loans in South Africa are simple to apply for, and you can utilize your loan for whichever purpose you see fit. Even if you have a poor credit history, his lender may be able to assist you.

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Once you’ve completed the loan agreement, these short-term loans will be deposited immediately into your bank account. Every day, Hoopla assists hundreds of people, and they are eager to assist you as well.

You must first decide what kind of loan you require. Each type of loan has a different range.

  • A payday loan might range from R100 to R8000.
  • A personal loan is the next step up from a payday loan, with rates ranging from R8001 to R20 000.
  • The next rung up is a long-term loan, which ranges from R20 000 to R250 000.

As a client, you should find it reassuring to know that 84 percent of Hoopla’s applicants are approved.

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3. Fincheck

  • Loan Type: Bad credit loans
  • Interest Rate: 16 – 28% p/a
  • Loan Amount: up to R250,000
  • Repayment: 3 months to 72 months
  • Decision: Same day
  • Website
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Image Credit: Getty Images

They provide personal and poor credit loans, as well as debt consolidation solutions, to help you get back on your feet and start living again. They are prepared to assist you in resolving your predicament, even if other lenders have failed to do so.

FinCheck offers a wide range of credit choices. They not only provide bad credit loans, but they also assist with loans for people with good credit.

These can be short-term or long-term loans with a minimum of R8000 and no limit. You have complete control over how you spend your money. Fincheck also provides auto insurance and life insurance to protect your family in the event of an unexpected disaster.

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4. Hippo

  • Loan Type: Bad credit loans
  • Interest Rate: from 24.75%
  • Loan Amount: up to R200,000
  • Repayment: 12 months to 72 months
  • Decision: Same day
  • Website

They want to help you save money and find the best bargain from the hundreds of options available from reputable providers all around South Africa.

They evaluate all partners’ credibility to ensure that they only deliver you the best. They collaborate not only with local South African lenders, but also with multinational firms. Choose Hippo while comparing different lenders!

Hippo is the most popular comparison website. They do not just compare banks, but they also compare insurance. They provide both life insurance and auto insurance, as well as other services. Hippo provides quotations for any personal loans that you require.

Hippo provides a lot of quotations in a variety of areas so that you may locate the best deals and save money. There’s no need to call other organizations or visit other websites to locate acceptable bad credit online loans; simply enter your criteria and they’ll provide relevant results.

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5. Loan SA

  • Loan Type: Bad credit loans
  • Interest Rate: up to 27%
  • Loan Amount: up to R150,000
  • Repayment: 6 months to 60 months
  • Decision: 3 minutes
  • Website

One of the top lenders in South Africa for short-term loans for people who have been blacklisted. Their online loans come in a wide range of options to satisfy even the most cash-strapped customer. They’ve even assisted consumers who have a poor credit history and have been turned down by other lenders.

Paralegal support from expert consultants is one of Loan SA’s primary value-added aspects that are included in their package. Throughout the duration of your membership, you will receive professional telephone legal aid and direction.

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Their service comprises financial aid to consumers who require a quick service provider that can assist them in finding a suitable credit choice with less effort.

  • Personal loans — consumers can borrow up to R150 000 to spend on whatever they want.
  • Vehicle financing is available for people with bad credit and those who have been blacklisted.
  • Debt consolidation is used when you want to combine all of your debts into a single loan agreement and make only one monthly payment.
  • Blacklisted loans — for clients with less-than-perfect credit who require cheap credit packages.

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6. EC Loans

  • Loan Type: Bad credit loans
  • Interest Rate: up to 28%
  • Loan Amount: up to R120,000
  • Repayment: 12 months to 84 months
  • Website
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Image Credit: Getty Images

Their business provides quick and dependable service to all South Africans. They will assist you in obtaining a loan even if you have a poor credit history or have been blacklisted.

EC Loans have simplified and streamlined the process of getting financial help. They understand that you don’t need any more problems or wasted time when you’re already dealing with the burden of your finances. This lender’s service is among the quickest available.

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EC Loans can help you locate a loan to meet unexpected bill payments, home renovations, or to pay for a memorable vacation. Whatever you need the money for, they’re here to acquire it for you!

Even if you’re blacklisted or have bad credit, they’ll find a way to help you. EC Loans provides clients with cash loans ranging from R1 000 to R100 000 that they can spend for whatever they want.

Clients can choose from a range of repayment choices ranging from 12 to 84 months, making it easier to repay their loans.

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7. Global Finance

  • Loan Type: Bad credit loans
  • Loan Amount: up to R100,000
  • Repayment: 6 months to 60 months
  • Website

Global Finance are lending market experts when it comes to providing blacklisted and bad credit loans in South Africa.

When you are discouraged from getting turned down by banks and other lenders just because you have a less-than-perfect credit score, you will find solace in the knowledge that Global Finance can assist you.

When you apply for financing, they provide you with a free, no-obligation estimate. Global Finance does not judge you based on your credit score, but rather on your degree of affordability and how much you can afford to repay on your loan.

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You should be able to qualify for one of their loans if you can afford to pay back your monthly instalments.

Since its inception in January 2000, Global Finance has assisted hundreds of blacklisted clients in obtaining loans that meet their repayment terms and budget.

Global Finance will go above and above to find you the financing you require, and they will do so quickly.

Simply visit their website, apply for a loan, and they will send the funds directly into your bank account. It’s that easy! It only takes a few minutes of your time, and because it is online, you may access it at any time from your home or office.

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8. Cube Finance

  • Loan Type: Bad credit loans
  • Interest Rate: from 28%
  • Loan Amount: up to R20,000
  • Repayment: 6 months to 3 years

Before payday, you may want to pay for an impending holiday, a medical expense, or care to a few domestic necessities. Cube Finance will assist you with one of their bad credit loans for whatever cause.

At the end of the day, it doesn’t matter what you need the loan for; this lender is more concerned with assisting you in obtaining credit that is best suited to your budget.

The only time they won’t be able to help you is if you can’t afford another personal loan based on your present financial situation. They will, however, notify you of the outcome. Furthermore, they will advise you what you need to improve on the next time you apply for a loan.

They have professional lenders on their database who will always ensure that you are comfortable with your long or short-term loan online. This means they’ll issue you a loan based on your monthly costs and budget.

If you still believe that the loan offered will put you in financial jeopardy, you may always contact your broker to discuss the best course of action.

At the end of the day, Cube Finance wants to make sure you’re satisfied with the bad credit loan you’ve received. There’s no point in forcing you to sign up for a credit plan you don’t like.

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9. Wanna Loan

  • Loan Type: Bad credit loans
  • Interest Rate: 5 – 60% p/a
  • Loan Amount: up to R3,000
  • Repayment: 5 days to 37 days
  • Decision: 6 hours
  • Website

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This lender is based in Cape Town, where their experienced team works hard to provide consumers with the greatest online payday loans and professional services.

Wanna Loan is happy to be a part of the Blackbird Group, a long-standing pioneer in the financial business. This expanding firm has accomplished a great deal over the years, and they continue to grow by issuing more and more online loans each month and adding to their vast list of delighted customers.

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Their loan system is totally automated, and consumers receive rapid contact, so there is no need to wait. At the same time, they are constantly striving to achieve more in order to provide you with more, so anticipate to receive more than you imagined!

Wanna Loan is a market leader in South Africa for short-term cash loans. They can easily assist you in resolving any cash issue. All you have to do is take the initial step by applying on their website.

You can easily apply online and receive an immediate response. If you are currently employed and make a good living, your loan application has a good probability of being approved.

Wanna Loan will review your credit report, but your credit score will not be used when determining whether or not your loan application is granted.

You can borrow as much money as you need to cover unexpected costs, pay your utility bill, or make modest purchases. There are no restrictions on how you can spend your loan.

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10. SupaSmart Loans

  • Loan Type: Bad credit loans
  • Interest Rate: 16 – 28% p/a
  • Loan Amount: up to R200,000
  • Repayment: 12 months to 60 months
  • Decision: a few hours
  • Website

When customers apply for credit online, they usually require funds right away. If you match SupaSmart Loans’ credit requirements, you can get one of their rapid loans the same day.

SupaSmart will not give you the runaround; doing so wastes your time and effort and is not the method to establish the reputation that this service aspires to. Instead, they want to make sure you have what you need in the least amount of time.

SupaSmart requires bank documents and pay stubs in order to determine your affordability. Customers tend not to consider about their credibility when they are in a dire situation, but brokers and lenders have an obligation to do so.

SupaSmart would be doing their consumers a disservice if they allowed them to receive any loan amount without first determining their affordability.

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Why Do You have a Low Credit Score?

Your credit score could be low for any of the following reasons:

  • You would have failed to pay your bills.
  • You haven’t made any payments.
  • Your credit application was denied. You have previously borrowed and failed to make timely payments.
  • You have never taken out a loan before and have no financial history.

When Should You Avail a Bad Credit Loan?

Bad credit loans should only be used when absolutely essential, which could be in any of the following situations:

  • Because of your poor credit, several lenders have turned down your loan application.
  • You’ve fallen behind on your credit card payments.
  • You have no other option for dealing with your current bills.
  • Your financial condition has improved, and you can now afford to repay a loan in order to improve your credit score.

Things to Keep in Mind Before You Avail a Bad Credit Loan in South Africa

Before you decide to take out a bad credit loan, keep the following considerations in mind:

  • Conduct thorough study and investigate the perks provided by various lenders. Choose a lender with cheaper interest rates.
  • Check your eligibility before applying for a negative credit loan to avoid having your loan application refused, which could further harm your credit score.
  • Examine the terms and circumstances of bad credit loans carefully so that there are no surprises later.
  • Before you apply for a negative credit loan, consider your repayment capacity.

How to Increase Your Chances to Secure a Bad Credit Loan in South Africa

  • Demonstrate your ability to repay the EMIs – Despite your low credit score, lenders may issue you a loan if your earnings have increased. As a result, if you can explain to the lender that your earnings have grown and that you can afford to pay the Equated Monthly Installment, you have a good chance of getting a loan. Monthly Installment Equated
  • Make available collateral – Providing collateral increases your chances of obtaining a loan by lowering the risk involved with lending to you. Lenders are willing to make you a loan because, in the event of a default, they can sell/auction the collateral to recoup the loan amount.
  • Apply with a co-applicant — When you apply for a loan with a creditworthy co-applicant, your loan eligibility improves. As a result, if you have a low credit score and want to get a bad credit loan, applying with a co-applicant is a good idea.

Which Lenders offer Bad Credit Loans in South Africa?

If you have a low credit score, pledging collateral can help you get a decent deal on loans. Providing collateral reduces the risk involved with lending to you, allowing you to negotiate lower interest rates with lenders. Secured loans are those that are made against collateral or security.

If you don’t have any collateral to pledge and are seeking for unsecured loans, you might be able to get one if your monthly wages are high and you work for a renowned loan.

Banks will charge you higher interest rates in such instances, and you may also be granted a smaller loan amount. For example, if your loan amount eligibility is normally 80 percent to 90 percent, it will be 65 percent to 70 percent due to your poor credit score.

There is also a possibility that you will be offered shorter repayment terms because banks want to collect the loan cash as quickly as feasible.

If you have a bad credit score in South Africa and want to get a personal loan, you have two alternative possibilities besides banks.

  • Non-Banking Financial Companies (NBFCs) – Many NBFCs will issue you a personal loan despite your low credit score, but at a little higher interest rate. When it comes to credit scores, NBFCs are typically more lenient than banks. Some NBFCs have approved loans with credit scores as low as 360.
  • Peer-to-Peer Lending (P2P) – Some lending websites, known as P2P websites, offer loans of up to R1,000,000 with terms ranging from 12 months to 80 months to people with bad credit in South Africa.

Are There any Alternatives to Bad Credit Loans in South Africa?

Yes, there are limited alternatives that you can investigate before settling for a bad credit loan. These are the alternatives:

  • Speak with your present financial provider to see if they can supply you with a customised loan based on your specific circumstances. Your present financial provider may be able to assist you in this matter rather than turning to a new source for a loan.
  • For a limited time, you can obtain an overdraft on your current account at a 0% interest rate. Never go over your overdraft limit because the unplanned overdraft fee might be very pricey.
  • Community-owned credit unions can provide a viable alternative to banks for persons experiencing financial difficulties. To qualify for the loan, you must be a member of the credit union. These organizations are helpful, and their primary goal is to serve their members.
  • Credit cards are another alternative for folks with a poor credit history. There are credit cards specifically designed for people with poor credit in South Africa. Despite the fact that they may have smaller credit limits or higher interest rates. Also, keep in mind that a failed application will further harm your credit card.
  • Payday loans are available. However, it is not recommended that you take out this loan.
    Use your personal funds for as long as possible. It is preferable to have used your savings rather than paying the high interest rates on loans.
  • Seek a loan from family and friends. You may work out a mutually advantageous agreement with them, and they will be far more understanding than any financial institution. You can reach an agreement on a mutual interest. Make it clear how you intend to return the debt, as there is a good probability that the relationship may suffer as a result. Agree on a time frame and stick to it.

Last Word

Stay away from loan sharks no matter what your difficulties are. Consult with your current lender and work out a solution that will keep you from defaulting behind on your payments and will keep you from building a bad credit history. The lender will constantly help you and advise you on how to handle your current financial situation.

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