South Africa has become one of the top countries when it comes to unemployment, as the rate has surged to 32.1%. Simply put, more than a quarter of the population is unemployed in the country. Multiple factors contribute to increasing the unemployment rate in the country, such as the large number of immigrants, slow economic growth, and apartheid legacy.
All these facts apart, an unemployed person needs to have a source of income that can help him make bread and butter. He cannot go forward to find a job position as all the positions are already secured, nor can he start a business because he does not have a single rand. However, he can apply for an unemployment loan.
Maybe you are thinking about how a bank or an organization will give you a loan in a state of unemployment. Well, there are very few financial aid programs for unemployed people in South Africa in which you do not need to show a bank statement if you are unemployed. Let’s look at these programs in detail.
1. Secured Loans for The Unemployed
As long as you do not have a source of income to show the bank or any other organization that you can repay the loan, you can apply for secured loans for unemployed individuals. In this type of loan, an organization requires collateral, such as a house, vehicle, or gold, it could be any valuable object to serve as security. You can receive the amount of the loan based on the collateralized object or asset value.
If you closely view the situation, you are not selling any valuable asset, but you are taking advantage of the things you collateralized. When you can repay the amount, you will get your asset back. But you should also note that if you are unable to pay the amount of the loan, the assets will be frozen.
Lamna
There are multiple organizations offering Secured Loans, in which Lamna is the top one. You can get a loan against your valuables, such as jewelry, vehicles, artwork, or other assets like yachts or boats. Loan money will be transferred within 12 to 24 hours after signing a contract.
Xcelsior
Another popular company giving loans against the goods of people is Xcelsior. The company releases the loan amount after signing a contract, but one must have to return the loan amount before the due date. Otherwise, the company will increase interest rates and freeze your assets.
General Eligibility Criteria of Secured Loans
- An applicant must be the full-time owner of assets or valuable objects.
- An applicant must have a clear credit history.
- An applicant must be able to repay the loan amount before the due date.
- An applicant must be legally able to get a loan.
2. Pawns Shop Loans
Another type of loan you can apply for is the Pawns Shop loan offered by a number of private companies. The loan is similar to the Secured loans explained above because, in the Pawns Shop loans, an applicant is also required to give his assets as collateral. The amount of the loan is determined based on the value of your assets.
You may ask what the difference is between a Pawns Shop loan and a Secured loan. In secured loans, companies ask for major assets such as houses, property papers, cars, or jewelry. But in Pawns Shop loans, you can use your musical instrument, electronic gadget, or other objects to get a loan.
First Advance
There is a list of the sources offering Pawns Shop loans in the country, but not all of them are trustworthy. If you are looking for a credible source to get a loan, you can apply for a Pawns Shop loan through First Advance, a loan company operating all around South Africa.
Cash Crusaders
Another credible source of Pawns Shop loans is the Cash Crusaders. It offers a list of loans, but the policies and rules of the company are very strict. If you are unable to pay the loan, they may sell your assets to recover their amount, the average duration to repay the amount is 30 days.
General Eligibility Criteria
- An applicant must be the owner of valuable items.
- An applicant must have a good credit history.
- An applicant must be legally eligible to get a loan.
- An applicant must have the ability to repay the loan.
- An applicant must understand the loan terms.
Unemployment can lead to a state where one is unable to afford basic commodities. The problem is that South Africa’s unemployment rates are increasing day by day as employees are fired daily by companies, losing jobs because companies are leaving the country, and immigrants are taking the place of citizens. In these chaotic times, you should apply for a loan and start a business rather than look for a job position, you can see the unemployed loan programs above; thank you.