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Watch Out for Real Predators Living in Our Communities
For many residents of Bloemfontein looking to borrow money, a mashonisa loan may seem like the only option.
However, most borrowers only turn to mashonisa in Bloemfontein because they are not aware of better loan options.
If you’re looking for loan sharks in Bloemfontein, Free State here’s what you need to know first.
KEY TAKEAWAYS
✔ Mashonisa in Bloemfontein represent a dark reality, taking advantage of vulnerable borrowers, leading to a cycle of debt and despair.
✔ Residents of Mangaung must beware the exploitative practices and devastating effects associated with mashonisa loans.
✔ RandWallet provides access to a safer and fairer financial landscape for Bloemfontein residents by partnering with South Africa’s top lenders and offering a free loan comparison service.
✅ How Much Do You Need?
Bloemfontein Mashonisa: Are They Legit?
Simply put, mashonisas are not legit. That’s because they are unregulated moneylenders that target low-income borrowers who are desperate for loans.
These neighbourhood lenders do not have a licence and their operations don’t meet the National Credit Act (NCA) code of conduct.
Therefore, they operate illegally. Still, most borrowers don’t care if they’re dealing with an illegal lender as long as they can get the cash they need.
This is irresponsible borrowing because getting a loan on bad terms is sure to backfire and create more problems than it solves.
It’s better safe than sorry, so always protect yourself as a borrower by only dealing with authorised and regulated loan companies that follow specific regulations.
Bloemfontein Loan Sharks: The Real Predators
Since loan sharks have blended into various communities in Bloemfontein, it’s difficult to recognise them for the real predators they are.
These loan sharks lurk everywhere in townships and low-income neighbourhoods, looking to bite and bleed their victims dry.
Let’s take a quick look at how they operate.
Outrageous Interest Rates
Mashonisa loans in Bloem always come with exorbitant interest. Interest rates can be as high as 120% APR, but most charge around 50%, which is still excessive.
These interest rates are designed to keep borrowers trapped in a never-ending cycle of debt and desperation.
It’s an unethical business operation that has ruined the lives of many individuals.
Deceptive Loan Offers
Many people who approach mashonisa in Mangaung believe these illegal moneylenders can be trusted.
It doesn’t help that mashonisas are well-known members of the community.
They can appear quite friendly when you first borrow from them and can lure you with attractive offers.
However, they will quickly trap you in dangerous situations that involve increasing debt, threats, violence, humiliation, and intimidation.
Predatory Practices
Lenders always face the risk that borrowers will default.
There are legal ways to manage this risk, such as carrying out affordability assessments, running credit checks, and charging personalised interests.
The problem with loan sharks is they rely on predatory enforcement methods.
For example, they can confiscate your possessions illegally and use violent and non-violent methods to ensure you pay back what you owe on time.
Hence, mashonisa loans put you at a great risk, which is often not worth the benefit of getting a loan.
Loan Sharks Vs. Online Lenders: Is There Really a Difference?
Just because loan sharks are often embedded in the local community, doesn’t mean they are the real deal.
While it’s true that mashonisa loans have certain advantages, such as no credit checks and quick access to cash, there’s always a catch.
You can find better alternatives to these mashonisa loans with an online lender.
Many online lenders in SA offer small-dollar, short-term lending in a regulated environment.
Residents of Bloemfontein should know that they deserve access to affordable and fair credit, not mashonisa loans that leave them financially vulnerable.
Find Better Loan Options With RandWallet
Mashonisas and informal lenders may seem like a good idea, but the risks always outweigh the benefits.
At RandWallet, we help you get the money you need in Bloemfontein without complicating your life and finances.
All our lender partners are NCR-certified and offer the following:
- Fair Interest Rates: You get reasonable rates that make sense to your budget.
- Legal Protection: Your rights as a borrower are protected, and you’ll have legal recourse.
- Flexible Loans: You have several options to choose from, and the loans work for various purposes
- Bad Credit Loans: You may still be able to get a loan even with bad credit.
- Easy Online Applications: Apply in minutes and receive loan offers from the comfort of your home or office.
»LEARN MORE: Mashonisa Loans in South Africa
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.