Mashonisa Loans In South Africa
Most people who end up using the services of a mashonisa are rejected by banks. When you apply for a loan from a bank and your credit record is bad, you will certainly get rejected. This means that you loan application is declined.
One major reason for your loan application to be declined is if you are blacklisted. People who are blacklisted are not assisted by banks and other financial insitutions. Lenders who operate other the guidance of the National Credit Requlator are likely to reject loan applications from blacklisted people.
Borrowing a blacklisted person is considered as reckless lending by the National Credit regulator. The main reason is that it might become difficult or even impossible to recover from a blacklisted person. Mashonisa loans come in to service people who fall into this gap. They are commonly known as loan sharks are always ready to help blacklisted people with a personal loan.
Why Mashonisa Help Blacklisted People?
The reason loan sharks are comfortable giving a loan to a blacklisted person is because they are not regulated by the NCR. Another reason is that they do not check your credit record.
Mashonisa develop alternative ways that are forcefull to recover their money from those they help. Some of their methods are even illegal in that they excert pressure to get their money back.
Why Use Mashonisa For A Loan?
Many people run to loan sharks often than not it is people who live in the same area. Secondly you do not have to produce a lot os documents in order to be assisted. Even if you are blacklisted you will still get a loan if you meet their requirements.
Mashonisa are often instant because they give you the money you need in cash. They are like instant or same day loan providers. Pensioners are never turned away by a these lenders. In fact they love people who are beneficiaries of SASSA. This is because they know it is money that is guaranteed to come every month.
Disadvantages of Mashonisa
Interest charged by these lenders is often very high. This is because they are not accountable to anyone. Some confiscate your very important items like your ID and bank card. We always discourage the use of mashonisa loans because of the risk involved. This goes to mashonisa loans for unemployed people. They are very risks and tend to cut down the repayment period which leads to you defaulting on your loan.