South Africa has an up-and-coming market to explore in the loan business but the Government is not left out on it. SEFA is a South African Small Enterprise Finance Agency owned by the government to support and promote the growth of small and medium-sized enterprises (SMEs) in South Africa for 5 years. The agency offers various financial and non-financial services to assist businesses in their development.
They are great at funding businesses with prospects, but one of the questions most people ask before applying for a loan is, “How long does Sefa take to approve a loan.”
The simple answer to this is “ten working days.” However, for abridged loans, SEFA takes about 20 to 26 business days to approve it. It maintains good loan repayment terms of 12 and 60 months. SEFA offers loans for up to R15 million for up to 5 years of repayment duration.
SEFA Loan Products and Services
SEFA offers different types of loans for SMEs. They include the following.
1. Business Loans
SEFA offers various business loan products tailored to the needs of SMEs, including working capital loans, term loans, and asset financing. To access business loans, your business must meet the eligibility criteria, which include being in operation for a minimum of 2 years. The business’s staff must consist of 95% South African citizens, and at least one of the stakeholders should be operationally involved in running the business activities.
2. Small Business Support
SEFA provides business development support and training to help entrepreneurs and small business owners improve their skills and manage their businesses more effectively. This way these enterprises are incubated till they stand in their industry for the first 5-years after all, they say that a business that would survive can only be told from the first 5 years of operation.
3. Equity Financing
SEFA may also provide equity financing to qualifying businesses, allowing them to access capital without additional debt. During the application, you will asked to submit some supporting documents before the loan can be approved ranging from your business’s official documents, personal identification, etc.
4. Franchise Finance
SEFA supports franchise businesses through specialized financing and assistance programs. This allows retail businesses that are into franchises to benefit from government financing.
5. Co-operative Financial Support
SEFA assists co-operatives by providing financial services and guidance. SEFA directly lends or finances two types of cooperatives, which are Cooperative Financial Institutions (CFIs) and enterprising cooperatives. As a cooperative, you must meet certain requirements to qualify for the loans.
Where Can I Get A Loan While Blacklisted?
Getting a loan in South Africa when you are “blacklisted” can be challenging, as having being listed with credit bureaus as a high-risk borrower can limit your options. Being “blacklisted” typically means that you have a history of defaulting on loans or failing to meet your financial obligations. This makes lenders careful when dealing with you.
If you are blacklisted, the loans you can easily get are Pawn loans, which are the type of secured loan where a person can borrow money by offering a valuable item as collateral to a pawnshop. You can get them from a pawnshop, and they are effective for short-term financing.
Other options where you can get a loan while blacklisted include:
1. Micro-lenders or Payday Loans
Some micro-lenders or payday loan providers may be willing to lend you money. However, be cautious as they often come with high interest rates and fees.
2. Friends and Family
Consider asking friends or family members for a loan. Your friends and family will not check for your credit score or treat you the way finance institutions will. While this option can be more flexible and may not involve a credit check, it can strain personal relationships if not handled carefully.
3. Credit Unions
Some credit unions in South Africa are more lenient with credit requirements and might be willing to lend you a loan even if you have been blacklisted. However, most credit unions will only help you if you are their member.
Can A Blacklisted Person Get A Loan?
Getting a loan when you are “blacklisted” can be challenging, but it is not impossible. The only disadvantage here is that you have limited options, and you risk being charged high interest that can keep you trapped in the debt pit for a long time.
If you are blacklisted, you cannot access loans from traditional institutions. Even if you must get a loan from a traditional institution, it must be a secured one, where you have to submit a valuable asset such as a car or property of value as collateral.
Micro-lenders and Payday loans can help you out with loans even if you are blacklisted, but they charge exorbitant interest fees. You can go for guaranteed payday loans, where a trusted friend or family member with good credit will act as a cosigner or guarantor for your loan. This will improve your chances of loan approval.
Which Loan Company Is Best For Bad Credit South Africa?
The best loan company for individuals with bad credit in South Africa is Capitec Bank. Capitec offers up to R250,000 personal loans with relatively competitive interest rates for 84 months with your bad credit score. They consider various factors beyond just your credit score when making lending decisions. These include your income, employment history, and your bank statement.
Also, the African Bank provides personal loans and consolidation loans to individuals with poor credit. They may be more flexible in their lending criteria. The beauty of this is that you can apply online within 3 minutes and get your request approved on time. You can borrow up to R50k for over 6 to 18 months at an interest rate of 12%.
Additionally, Bayport Financial Services is a good loan company for individuals with bad credit. Bayport offers personal loans, debt consolidation loans, and payday loans to individuals with bad credit. The qualifying criteria are relatively flexible.
Does Capitec Bank Give Loans To Blacklisted Clients?
Capitec Bank does provide personal loans to clients with less-than-perfect credit histories, including those who have been blacklisted. Their lending decision on Capitec is typically based on a comprehensive assessment of your financial situation, which includes factors beyond just credit scores, such as your income, expenses, and the extent of your outstanding debt.
Capitec Bank is more flexible in its lending criteria than some traditional banks, and its interest rates on personal loans are highly competitive. You can get up to R250,000 cash over a loan term of 84 months.
To qualify for a Capitec Bank loan, you must fulfill the following criteria. They include:
- You must be 18 years or older
- You must have a recent salary slip, pension slip, or bank statement
- It would be best if you were employed or a pensioner earner
- You must have worked with your current employer for longer than 2 months.
- You must not have been placed under debt review, handed over, or sequestered.
Can A Loan App Blacklist Your BVN?
A loan app typically cannot blacklist your Bank Verification Number (BVN). When you default on a loan from a loan app or engage in fraudulent activities related to loans, the app or the lending institution can only report your information to credit bureaus. Credit Bureaus will be the ones to blacklist your BVN if you are found guilty.
Which Loan App Is Illegal In Nigeria?
Recently, the Nigerian government, through the Federal Competition and Consumer Protection Commission (FCCPC) removed 37 illegal loan apps from the Apple App Store and Google Play Store. These apps were delisted due to the constant harassment they confer on Nigerians. Additionally, they were found guilty of using abusive language on borrowers and charging high late payment fees and interest rates.
The 37 delisted loan apps, which were termed illegal in Nigeria, include Getloan App, Easeloan Apps, Swiftkash App, Moneytreefinance Made Easy App, Hen Credit Loan App, Crediting App, Yoyi App, Cash Door App, Cashlawn App, Camelloan App, Joy Cash-Loan Up To 1,000,000 App, Eaglecash App, Luckyloan Personal Loan App, aira Naija, Easynaira App, Nut Loan App, Cashpal App, Nairaeasy Gist Loan App, Nairaloan App.
Others include Nownowmoney, Naija Cash, Secucash App, Firstnell App, Naira Naija, Imoneyplus-Instant, Creditbox App, Galaxy Credit App, Ease Cash App, Xcredit, Imoney, Nairanaija-Instant, Eagle Cash, Flypay, Cashmama App, Cashme App, Crimson Credit App, and Spark Credit.
Can I Get A Loan At African Bank If I Blacklisted?
No, you cannot get a loan at African Bank if you are blacklisted. African Bank is not a blacklisted finance solution, so if your credit record is too bad, you might not qualify for a loan.
African Bank calculates your credit risk and credit profile when assessing your loan. Factors considered include non-payment, late payments, debt review, balances on credit cards, and more.
Where Can I Borrow Money Instantly In South Africa?
One of the places to borrow money instantly is South Africa. Nirafinance offers one of the best instant online loans in South Africa without any credit check or much documentation. Another good thing is that the application is online, and you get approved within 3 minutes.
Wonga is another 24/7 fast cash solution that provides personal and short-term loans without stress. Basically, online instant cash loan lenders and payday loan lenders are good sources where you can borrow money instantly in South Africa.
Which Loan Is Easiest To Get With Bad Credit?
When you have bad credit, it can be challenging to obtain traditional loans from banks and major financial institutions. However, some loans are generally easier to get with bad credit, although they often come with higher interest rates and less favorable terms. Here are some of the options that are relatively easier to obtain with bad credit:
1. Payday Loans
Payday loans are short-term, high-cost loans that are often easier to qualify for, but they come with extremely high interest rates. They are usually designed to be repaid on your next payday.
2. Title Loans
Title loans are secured loans that use your vehicle as collateral. If you own a car outright, you can use it to secure a title loan. These loans can be easier to obtain, but if you fail to repay, you risk losing your vehicle.
3. Pawn Shop Loans
Pawn shop loans involve offering a valuable item as collateral, such as jewelry or electronics, in exchange for a loan. The approval process is generally easy, but you risk losing your item if you can’t repay the loan.
4. Personal Installment Loans from Subprime Lenders
Some lenders specialize in providing personal installment loans to individuals with bad credit. While these loans may be easier to get, they often come with high-interest rates.
5. Online Lenders and Peer-to-Peer Lending
Some online lenders and peer-to-peer lending platforms are willing to work with borrowers with bad credit. These lenders may consider factors beyond your credit score when making lending decisions.
6. Credit Unions
Credit unions are nonprofit financial institutions that may be more lenient with their lending criteria. If you have a membership with a credit union, they might be more willing to work with you.
SEFA loans are the best loans to finance your Small and Medium business because of their low-interest rate and long repayment term. However, you have to ensure your business meets up with the criteria before applying for the loan. Additionally, it is necessary to apply caution and carefully read the terms and conditions of a platform before signing to get a loan from them.