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.

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.

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.

Lenders for Loans Bad Credit People in South Africa

For South Africans with a bad credit history, obtaining financial funding can be difficult. However, there are options available in the form of specialized loans specifically designed for people who have a low credit score or are blacklisted.

These personal loans can be accessed online, but it is important to keep in mind that they tend to be more expensive than typical bank loans due to the greater risk involved.

Nevertheless, you may still be able to obtain this type of loan if you can demonstrate the ability to make payments on time and/or offer some form of collateral as security.

By utilizing such a loan and paying it off on time you may even be able to help improve your credit score over time.

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
Image Credit: Getty Images

Mulah is a specialised loan provider that caters exclusively to people in South Africa with poor or non-existent credit scores.

Unlike many other lenders Mulah offers competitively low interest rates, ensuring that customers can keep up with their payments and still be able to go on living as they normally would.

Before providing a loan, Mulah always ensures the customer understand their associated fees and if it’s believed repayment might not be possible then another option will be recommended.

Providing bank statements and payslips is an essential component of the application process as Mulah needs to assess your current financial situation before approving a loan.

This assessment is important so they can ascertain whether you can afford taking on additional credit without putting yourself under undue financial pressure.

For added convenience, Mulah also uses a debit order system for collecting payments so there’s no need for customers to take time off work in order to make repayments.

Not only does this ensure stress-free repayments but means everyone involved benefits from timely payments being made on schedule each month.

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

If you have a poor credit score and have been blacklisted, Hoopla Loans is here to help. This lender offers rapid internet loans to individuals in South Africa that range from R100 to R250 000.

These funds can be utilized for whatever purpose you see fit, allowing you flexibility with your money.

The loan application process is simple and straightforward and the approval rate is incredibly high – 84 per cent of all applicants are approved!

Once submitted, your loan will be disbursed directly into your bank account within moments.

No delays or hassles, just quick cash when you need it most.

Loan options vary depending on how much you want to borrow; for instance, a payday loan could range from R100 up to an amount of R8000 where as personal loans can be more ranging from R8001 to a total of R20 000 if needed.

Lastly, long-term loans offer even more borrowing power at rates between R20 000 to an impressive limit of $250 000!

Hoopla understands the common struggles faced by those looking for bad credit loans in South Africa – that’s why they are dedicated to helping as many people as possible through their easy loan programs and excellent customer service.

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
Image Credit: Getty Images

FinCheck is an experienced provider of financial services for those struggling with poor or limited credit and debt.

They offer a wide range of loan solutions, ranging from short-term loans to long-term loans, with a minimum loan amount of R8000.

Through this varied offering, FinCheck can help you get back in control of your finances and start living again.

No matter what your current situation is, they are here to assist in finding the right solution; even when other lenders have refused to help you out.

In addition to helping people access to credit and consolidate their debts, FinCheck also offers insurance products such as auto insurance and life insurance so that you can protect your family against unexpected disasters.

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

Hippo is the go-to source for finding the best financial deals in South Africa. By partnering with reputable lenders, both local and multinational, Hippo can offer its customers hundreds of options to choose from.

From personal loans to insurance – auto, life, and others – Hippo provides customers with a detailed comparison of rates so they can make an informed decision when it comes to saving money.

Hippo is easy to use; no need to contact other firms or search multiple websites. All you have to do is enter your criteria and get relevant results immediately!

With access to hundreds of options from reliable providers on one platform, choosing the most suitable deal has never been easier!

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

Loan SA is one of the leading providers of short-term loans in South Africa for people who have been blacklisted.

Their online loan process is simple and offers a wide range of options to help cash-strapped customers find the best credit solution with minimal effort.

They are committed to providing financial aid to their customers, even those with a poor credit history, that have been turned away by other lenders.

In order to provide better consumer service, they include paralegal support from expert consultants as part of their package.

This includes telephone legal advice and guidance throughout the duration of your membership.

They offer several types of loans including personal loans up to R150 000 which can be used on various expenses and vehicle financing for those with bad credit or who have been blacklisted.

For clients that need to reduce their monthly payments, Loan SA also provides debt consolidation services which combine all debts into a single agreement with one monthly payment.

Finally, they offer bad credit packages specifically tailored for clients who have less than perfect credit score and require cheap finance solutions.

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
Image Credit: Getty Images

EC Loans is a lender that’s dedicated to helping South Africans access the funds they need, no matter their credit history.

Whether you’re looking for assistance with an unexpected bill or hoping to take your dream vacation, EC Loans is here to help.

They offer fast, dependable service and loans ranging from R1 000 all the way up to R100 000.

No matter what your financial situation is, EC Loans can work with you to provide support in these difficult times.

Even those who have been blacklisted or have bad credit histories are eligible for their services.

When you apply for one of their loans, you’ll be able to choose from payment plans ranging from 12 up to 84 months so that you can make manageable payments on whatever loan amount suits your needs best.

With EC Loans’ commitment to providing quality customer service and fast turnaround times, it’s easy to see why they continue to be the go-to financial resource for South Africans nationwide.

7. Global Finance

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

Global Finance is an experienced and trustworthy lender that specializes in providing loans to people with bad or poor credit ratings in South Africa.

For those who have been refused loans from traditional banking institutions due to their unfavourable credit scores, Global Finance offers a viable option for obtaining much-needed financial aid.

Applying for a loan through the company is free of charge and requires no commitment from you; what’s more, approval will be based not on your score but rather on your level of affordability and ability to repay the instalments.

Since its establishment in 2000, Global Finance has helped hundreds of blacklisted clients secure loans that meet their budgetary requirements as well as repayment terms.

Plus, they guarantee fast processing times so you can get access to your money when you need it most.

All you have to do is simply fill out an application form through their website and within moments funds can be deposited directly into your bank account.

With Global Finance, getting the loan assistance you need has never been easier!

8. Cube Finance

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

If you’re in a tight spot before payday and need financial help, Cube Finance could be just the lender for you.

They offer bad credit loans tailored to your budget, taking into account your monthly expenses so that you can choose a loan term that fits your situation best.

You may need the loan for an impending holiday, medical expenses, or simply basic necessities – it doesn’t matter; Cube Finance is concerned with helping you get the credit that’s right for you.

Their database includes professional lenders who will take care to make sure you don’t take out a loan bigger than what you’re comfortable with.

Even if it turns out that based on your current finances, another personal loan isn’t advisable for you at this point in time, Cube Finance will still let you know what improvements are necessary so that next time around your application can be approved.

Above all else, they want to ensure that their customers are completely satisfied with their decision to request a bad credit loan – thus refusing to pressure applicants into signing up for an unsuitable plan.

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

Wanna Loan is a financial services provider based in Cape Town, South Africa.

They are renowned as a market leader for providing top-notch online payday loans and other professional services.

Part of the renowned Blackbird Group, they have been pioneers in the finance industry for decades, continuing to thrive by issuing more loans each month and growing their base of satisfied customers.

Their loan system is fully automated so borrowers receive quick contact from them with no need to wait.

Wanna Loan always strives to do better in order to provide you with more than you expected!

Their loan application process is simple and straightforward – just head over to their website and apply online for an immediate response.

As long as you are employed and have a steady income living, your application has good chances of being approved regardless of your credit score.

You can take out as much money required to cover any unexpected costs or make small purchases – there are no restrictions on how you spend it!

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

If you’re in a pinch and need fast access to funds, SupaSmart Loans is here to help.

As long as you meet their credit requirements, they will provide you with one of their rapid loans the same day, without adding any further stress or delay on your part.

In order to make sure that their customers are able to responsibly manage the loan amount they receive, SupaSmart requires applicants to submit bank documents and pay stubs as proof of income to determine affordability.

This way, SupaSmart can ensure that every consumer can receive the amount of money they need while also making sure they are able to repay it over time.

With this method, SupaSmart has established a reputable service that puts customer convenience first – avoiding the hassle of ‘the runaround’, while still protecting its customers with responsible lending practices.

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 a 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 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 per cent to 90 per cent, it will be 65 per cent to 70 per cent 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 pay 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 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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