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THE TRUTH ABOUT MICRO LOANS,
PERSONAL LOANS AND MONEY LENDERS
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Get a free copy of
your credit report.
To request your free credit report please contact us at
Tel: 021 888 6000 or email:
ccc@compuscan.co.za
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PERSAL LOANS
Persal Loans for government personnel.
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Managing
you personal finance online has increased
tremendously in popularity over the past few years.
Most of us only dread thinking of standing in a
queue to transfer money or pay our monthly accounts.
Internet banking has surly been welcomed by a large
majority of South African consumers and now days
every aspect of your personal finance can be managed
by the click of a button at a time that is
convenient for you.
A newcomer to the online financial product market is
the Persal Loan. These loans have especially been
shaped in support of Government Employees. The
product has been modernized to give South African
Government Employees a flexible personal loan at the
best possible interest rate and extra convenience.
Persal Loan surly looks like a financial product
that will stand the test of time.
click here to apply
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Persal loans up to R50 000
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Apply
for a personal loan at a time that is convenient for
you even if you have bad credit or no credit. |
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No face to face interviews. We will communicate
directly with you via email or sms. |
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No security needed. |
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Cash deposited directly into your bank account. |
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Blacklisted clients welcome. |
Persal loan requirements
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Applying
for a loan is easy!
Completing the online enquiry form on our website. |
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An
application form will be sent to your email address.
Please complete and return it to us together with:
A copy of your ID (certified)
A copy of your Latest Payslip (stamped by your
employer)
3 months bank statement (must be printed and stamped
by your bank teller) |
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After
receiving your supporting documents we will send
your Quote within 60 minutes, which you can either
except or reject |
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THE TRUTH ABOUT MICRO
LENDERS
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Are all micro
financiers and "loan sharks"
Professional micro financiers do not exploit their clients and
act strictly in accordance with established ethical codes and
codes of conduct, and in the interest of the client. After all,
the objective is to get repeat business from the same client.
"Loan sharks", by contrast, frequently do not have a fixed address,
charge excessive interest, have no book-keeping or operating
system in place, and resort to unethical methods of collection.
Professional micro financiers distance themselves from ''loan
sharks'' and insist that the authorities do everything in their
power to curtail the activities of these operators, ridding
the industry of them in the process.
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Do micro financiers charge excessive loan interest rates?
The cost of credit charged by micro financiers is referred to
incorrectly as being the interest rate. However, it represents
the total finance costs per micro loan/personal loan, charged
by micro financiers, inclusive of components such as administration
costs, management of the account and risk. This mark-up can,
therefore, not be equated with the interest rate charged by
a bank as this would be tantamount to comparing apples with
pears. Micro financiers may not charge any other costs e.g.
administrative costs separately. The mark-up, therefore, is
all the client pays and there are no hidden costs.
The main reason why the interest rate portion, only, of micro
financiers' charges is higher than that of the banks is because
micro financiers take a far greater risk than banks do. Banks
are invariably not prepared to help any client who does not
have security for a micro loan. Micro financiers lend money
without any security being offered by the client.
The administrative costs related to lending transactions, are
relatively higher for smaller unsecured loans. Several small
unsecured loans are necessary before a Micro financier is able
to generate income equal to that which a bank is able to generate
by means of one big loan over a term. Micro financiers are entitled
to cover their costs and to make a reasonable profit in line
with the risks to which they are exposed.
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Would Formal banks will be able to offer micro loans more efficaciously
and at lower interest rates.
Formal banks are not prepared to take the risks associated with
lending money to the informal sector. The cost structure of
formal banks is such that they find small loans completely unprofitable.
Formal banks do not have the infrastructure and distribution
network of micro financiers to deliver a service to the remote
corners where this service is required. Formal banks do not
have the necessary expertise of the micro finance industry to
run this kind of business as successfully as they do.
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Do micro financiers commit fraud with the clients' cards and
pins?
There has been no court case, nor are we aware of any other
case that proves that micro financiers abuse their client's
cards or pins to commit fraud with them. Nor has any evidence
been given led by the State (in recent court cases) to this
effect.
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Do micro financiers retain the ID documents of clients?
It is both illegal, and unnecessary, for the Micro financier
to retain the client's ID document and this is something that
the MFSA strongly disapproves of.
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Is the name "Micro financier" simply another name or a euphemism
for ''loan shark’’?
There is a clear distinction between formal micro financiers
who observe strict business ethics and informal lenders who
choose to remain faceless (no office or fixed address etc.)
The latter often show no mercy in their dealings with their
clients. It is this kind of operator that is the essence of
"Loan Sharking".
In order to survive in a competitive free market, formal micro
financiers have to conduct themselves professionally, in a friendly
and helpful fashion, delivering an acceptable service to ensure
that their client's rights are protected. Acceptable service
levels are paramount to lenders business cycle.
Informal micro financiers or ''loan sharks'' are not registered
with the NCR as regulatory body and do not belong to any professional
organisation, such as the MFSA, who is their collective representation
in their industry. Their conduct falls beyond the ambit of the
provisions of the law, which gives the entire industry a bad
name.
Formal micro financiers, who conduct themselves professionally
and comply with the law, make an important contribution to the
economy, in providing money loans to a market segment which
cannot be serviced by banks due to the risks involved. These
cash loans are used for education and training, housing, the
running of businesses and for personal needs. The lender seeks
to ensure that clients do not expose themselves to loans that
are too high for their particular circumstances.
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Are loans given
to unqualified clients?
The financial position of the client and his ability to repay
is accurately determined based on information provided by the
client and also by means of discreet enquiries made by the Micro
financier. The loan, interest (including costs), conditions,
amount to be repaid and contents of the agreement are explained
to the client, usually in his own language so that he understands
clearly what is involved. The latter particulars are concluded
in a written agreement between client and Micro financier. The
client is provided with a copy of the agreement.
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Do consumers easily get themselves into a debt spiral from where
there appears no way out?
Consumers are selected and assisted in only borrowing such amounts
to ensure affordable repayments. Clients are assisted further
in elementary financial planning and basic budgeting, as explained
in the MFSA's community education publication: "Personal Money
Management". Specific attention is given to the aspect of granting
loans that the client is capable of repaying. If a Micro financier
intends to continue the business cycle with his clients and
repeat business, it is not in his interest to over lend. (By
doing so he would only have a market for his loans for a few
months, where after he would have to shut down. Would not mention)
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Are
micro financiers illegal and unregulated?
Micro financiers act in terms of legal provisions that have
been put in place by the authorities, in terms of the Usury
Act or Regulations. All micro financiers have to be registered
with the Micro Finance Regulatory Council (NCR) and be able
to prove their membership to the public. By registration with
the NCR, a Micro financier does not automatically become ethical
end therefore, as a form of self-regulation; MFSA members are
subject to a stringent code of ethical behaviour codes that
also include proving membership to the public.
Professional micro financiers, consequently, are registered,
act in terms of the law and maintain high professional, ethical
and moral standards in the course of conducting their business.
Several conventional banks have also now joined the ranks of
micro financiers.
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