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Say No to Loan Sharks
Many things can go wrong when dealing with mashonisa in Durban. Save yourself the trouble by saying no to loan sharks in eThekwini.
KEY TAKEAWAYS
✔ When looking for mashonisa around Durban, it’s best to consider safer alternatives first.
✔ Unregulated moneylenders are responsible for a lot of financial and psychological hardships among borrowers.
✔ RandWallet offers great options for borrowers looking for easy access to online unsecured credit.
✅ How Much Do You Need?
For many struggling borrowers in eThekwini, making ends meet is harder than ever, what with the ever-increasing costs of living.
An unexpected expense, such as car trouble or an emergency trip to the dentist, can upset your budget.
In such instances, the best solution may be to explore your borrowing options, which may include loan sharks.
However, loan sharks should never be Plan A or even Plan B – they are that bad.
So, if you are looking for mashonisa loans in Durban, read on to learn how to apply for better options online.
Are Mashonisa in Durban Really That Bad?
Loan sharks are not only a problem in eThekwini, they are also prevalent in other areas in the province of KwaZulu-Natal.
The main issue is that these illegal moneylenders are socially accepted as members of the community.
But residents of Durban need to get to a point where they recognize that mashonisas are not friendly, neighbourhood moneylenders.
They are predators.
Whether you’re looking for loan sharks in Chatsworth or mashonisa around Umlazi, the interest rates you’ll find are extremely high.
Normally, the National Credit Regulator (NCR) caps interest rates on payday loans at 36%, but loan sharks don’t abide by these rules.
The huge interest rates mean borrowers can find themselves paying back many times more than the original loan amount.
In addition, loan sharks pressurise borrowers to pay back the money in all sorts of illegal ways.
So, yes, mashonisa in Durban are really that bad.
They offer “no questions asked” cash loans with a friendly face, but when you’re struggling to pay, you suddenly find yourself living in fear and deep in spiralling debt.
What Are the Best Alternatives to Mashonisa Loans in Durban?
When you need extra cash desperately, and mashonisas look like the best option, it’s tempting to just go for it.
For many borrowers, that’s the only apparent option available.
That’s why financial education is so valuable as it opens up a world of safer borrowing options.
Before looking for loan sharks in Durban, consider better alternatives below.
Personal Loans
Personal loans are usually the best option available for borrowers looking for unsecured credit.
Depending on your financial needs, you can apply for various loan amounts ranging up to R250,000 with flexible repayment periods from six to 84 months.
Most personal loan lenders use the borrower’s credit history to determine if you qualify, instead of asking for collateral.
Interest rates will depend on your credentials, but in any case, rates are likely to be more competitive than loan shark offers.
Payday Loans
Payday loans are different from personal loans because they offer smaller amounts over shorter terms.
Interest rates for payday loans can be quite high, but unlike mashonisa loans, they are still within regulated limits.
For example, the highest interest rate payday lenders can charge is 5% per month, but loan sharks can charge huge interest rates of 50–100% per month.
Still, because of the relatively high interest rates, be sure you can repay your payday loan quickly.
It’s better to use these small loans for emergencies to avoid a situation where your debt becomes unmanageable.
Credit Cards
A credit card is a useful tool to help you cover cash flow gaps.
You only need to apply for a credit card once to gain continued access to a limited pool of funds.
You need to keep up with your payments so that your account remains in good standing.
The great news is that you’ll be charged interest only on the outstanding amount.
Credit cards offer plenty of flexibility and convenience because you don’t have to carry cash around.
You can pay securely with your credit card, whether you’re shopping online or buying groceries.
If you’re a smart borrower, look for credit cards that give you a 55-day interest-free period.
That way, you can use the card and pay the closing balance in full by the due date without being charged interest.
Can I Qualify for Better Loan Options if I Have Bad Credit?
People looking for mashonisa loans in Durban may consider this alternative because they have bad credit.
Perhaps, they’re worried they won’t qualify for formal credit as high-risk borrowers.
However, don’t be discouraged from applying for better loan options if you have a poor credit history.
Some lenders are flexible and have inclusive loan requirements to accommodate people with both high and low credit scores.
The lending market in South Africa is quite versatile, and it also offers secured loans.
You can provide collateral to reduce the lender’s risk and increase your chances of qualifying.
In the long run, it’s best to work on improving your credit score, mainly by making payments on time.
This will help open up even better loan options that loan sharks can never match.
Explore Better Credit Options With RandWallet
When you need cash fast, the last thing you want to worry about is whether a loan shark is good for you.
But don’t sacrifice your peace of mind for short-term financial relief. Make sure you explore better loan options with competitive interest rates.
Here’s where RandWallet can help.
Apply today to start comparing loan offers from top registered credit providers on your phone.
It’s as simple as that!
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Our Research Expert
Gracie Makowe is a full-time personal finance writer with 10 years of experience and a Bachelor of Commerce in Financial Management from UNISA. Learn more.