South Africa is home to a large population of Zimbabwean nationals. For some of these individual getting access to loans can be a challenge at times.
Many Zimbabwean individuals often face an uphill battle when they need to apply for a personal loan in South Africa.
With most of the major banks in South Africa, the risk for them lies in the fact that many of these individuals don’t have enough of a credit history to be able to prove their creditworthiness.
Fortunately, things are changing as there are now certain credit providers who offer loans for Zimbabweans in South Africa. As long as you have legal working permits and full time work in South Africa, you can apply for a loan.
You may even qualify for a loan of up to R200 000 or more.
Loan for Zimbabweans requirements, include:
- 3 months’ bank statements
- Latest payslip
- Employment contract
When applying for local loans for Zimbabweans in South Africa, keep in mind that credit providers want to see proof of you paying a debt off diligently.
It helps to work on establishing a good credit record if you want to apply for a personal loan. You can do this by applying for a store account and making sure that you pay it off diligently for at least 6 months. This will prove to loan providers that you are able to repay a loan on time.
Challenges faced by individuals looking for local loans for Zimbabweans in South Africa:
General lack of access to credit
For credit providers in South Africa, they generally want to see some proof that an individual has an established credit record. This credit record must be impeccable. Any defaults result in adverse effects on your credit record.
Higher interest rates
Zimbabwean individuals will generally be charged higher interest rates because they are considered to be a higher risk for lenders.
Higher repayment installments
Installments may generally be higher due to higher interest rates.
Higher insurance costs
Insurance costs are generally higher due to a higher associated risk.
Tips for qualifying for local loans for Zimbabweans in South Africa:
- Make sure that you have your work permits on hand for the application process
- You should not have any outstanding debts when applying for a personal loan
- Make an effort to establish and maintain a good credit record
- Provide all necessary documentation as required, to facilitate a faster loan process