When you are awaiting funds following resignation, retrenchment or retirement, it may take a while before you receive your funds. A bridging loan can help to ease the strain on the costs of your daily living expenses and can help you pay off some of your outstanding debts.
A divorce can also be financially crippling and making ends meet while you wait for the settlement can be quite difficult. A bridging loan is a simple yet effective solution during such moments.
SA Multi Loans (Bridging Loans) while waiting for Provident Fund Payout
Benefits of a bridging loan against your provident fund:
While you are waiting for your lump sum payment, a bridging loan can help you meet some of your most pressing financial needs.
How much you are charged for the loan is usually dependent on your individual risk profile.
Most private schemes are on the approved lists.
Most bridging loans can be arranged within 5 working days.
What documentation is required for an SA Multi Loan?
- A valid South African ID
- Latest 2 months’ bank statement
- Latest payslip
- Provident fund benefit statement
- Letter from employer confirming and accepting severance package
- Divorce settlement (where applicable)
Tips about getting a bridging loan against your provident fund:
To make the process faster, it’s better to have all your documentation ready.
It is often ideal to be creditworthy or to have a good credit record.
Make sure that you get your loan from a National Credit Act-regulated lender and that the lender adheres to regulations stipulated by the National Credit Regulator.
There may be a telephonic interview conducted to verify elements of the application.
It is better to settle this bridging loan as soon as possible, to ensure that your costs are kept to the bare minimum.
An institution that specialises in assisting with bridging loans against provident funds is Pension Bridging. Visit their website here: www.pensionbridging.co.za