Are you a sole trader, freelancer, partner or company director? You may experience some cash shortage for business growth or want to buy a new vehicle. In such a situation, if you are self-employed, you can apply for loans with a fast payout at MoneyStar.
You can get them from the most reliable lenders in your province with a 98% loan approval rate by completing a small process. This type of borrowing can manage your short-term money problem which has happened unexpectedly to cause you inconvenience.
What are loans and their uses for self-employed people?
Self-employed loans are either secured or unsecured and are taken out to improve businesses or other expansions to equipment. These loans are designed to help people continue their business covering cash shortage.
They usually come with high loan amounts and interest rates to pay whenever your due date arrives. Since borrowers have various needs, they can use the money to meet them as soon as possible with our most reliable lenders in South Africa.
Being self-employed means you may not have a regular income, but many online lenders are still willing to work on your loan application. Also, borrowers with self-employed apply for these funds for the following reasons:
Uses of self-employed loans:
- Buy a new vehicle
- Buy tools
- Pay annual personal tax
- Debt consolidation for business
- Buying new machinery
- Paying shipping costs
- Paying invoices
Apart from them, there can be other expenses that self-employed loans can quickly fix them. But it would help if you made sure of making their payments on time to avoid paying extra because they come with high interest rates.
What are types of self-employed loans in South Africa?
There are various types of self-employed loans in your province, and borrowers apply for them for various purposes. You need to understand the difference between the types of these loans before taking your step.
Self-employed loan types:
- Personal loans: Depending on the chosen lender, you can apply for personal loans, which can also be secured or unsecured. These loans are also more expensive than traditional loans and are usually used for small daily expenses.
- Secured loans: If your credit score is bad and you don’t have employment status with you, which verifies your income. Then, you can apply for secured loans by putting one of your assets for money. But you have to pay low-interest rates against these loans because lenders can recover their money if you fail to pay.
- Guarantor loans: You can also apply for guarantor loans by bringing someone with a good credit history. Here, a borrower should be interested in getting you money on his or her credit, but your guarantor is liable to loan repayment if you don’t pay off your loan.
- Partnership loans: Here, two types of people are engaged in a business. Each one of them income and responsibility are liable to their business expansion. So you can also resort to these funds when you need them.
How to get approval for self-employed loans from direct lenders?
Applying for self-employed loans is very quick and easy from direct lenders because they have a short process for lending money. In a few steps, you can complete the process and get approved in minutes with no hassle of official formalities.
Apply now in just 4-steps:
- Fill out the online application: You must complete a simple application with employment information and some personal details with authentication. Make sure each information is correct; you can review them before submission.
- Get approval: You can get loan approval in 5 to 10 minutes because the verification process doesn’t take much time by our reliable lenders in your province.
- Sign the loan agreement with a digital signature: You will get a loan contract on your email ID to sign it digitally. But you need to look at its terms and conditions before you do the signature for safety purposes.
- Get funded same day: You can receive your money in your bank account in the next 10 to 15 minutes from direct lenders after the trim process.
How do you meet lending criteria for self-employed loans?
Self-employed loans come with a lending criterion for borrowers to meet for qualifying. In your province, lenders may have requirements differently, but some online lenders need basic things you must keep arranged while applying for such funds.
Manage some basic requirements:
- Your age must be 18 or above: Your minimum age is 18 by some lenders in South Africa, so you need to make sure you are fit for it.
- Employment: You need to prove your current employment to qualify for the money. You can share your self-employment source if you have it with you or any other for loan repayment purposes.
- A bank account: You need an active bank account to receive your money after getting approval from lenders. Receiving money in your bank account is one of the safest ways of lending money.
- Citizenship of South Africa: Make sure your citizenship belongs to South Africa to meet the lending criteria of online specialized lenders to help you further.
- Contact details: Your contact details include your permanent address proof, an email ID and a contact number to complete the lending criteria.
Can you get self-employed loans if your credit score is low?
The simple answer is yes- you can get approval or self-employed loans with your bad credit score from a few online lenders. Your low credit score has a destructive impact on your lenders, making them make harsh decisions to help you financially.
At the same time, some lenders are available to help you with money immediately, accepting your lousy credit score. Note: these loans make you pay more than traditional loans during repayment.
Therefore, you need to check your loan affordability before applying for such funds so that you may be unable to handle it.
What are benefits of choosing self-employed loans?
Benefits for self-employed loans vary from lender to lender depending on their company policies and some other factors. Still, there are some benefits that you should check before applying for this type of money.
- Quick access: You can get quick access to funds whenever you feel a cash shortage in your business expansion or flourishing.
- Easy process: The process is easy to complete with some basic detail requirements. It is one of the second benefits that borrowers expect.
- No hidden charges: You won’t have to pay anything that the lenders do not tell you. Thus, borrowers feel the convenience with us.
- Bad credit adjustable: An interesting thing is you can get your loan approval with your bad credit score because lenders accept it if you can make your loan payments on time.
- 24/7 service is available: You can apply for the money anytime, 24/7, whenever you meet cash urgency in South Africa.
How much loans amount can you get being self-employed?
The loan amount depends on various factors such as your income, credit score and the type of lender you have chosen for a self-employed loan. In your province, some lenders still offer loans ranging from R100 up to R50,000 to meet your needs.
Make sure you pay off your loan on time once you have funds because missing loan payments push you into debt. It then makes you helpless in getting financial assistance, negatively affecting your credit score.
Self Employed Loans Fast Payout- Some FAQ’s.
Can I get a loan if I’m self-employed in South Africa?
Yes, you can be eligible for loans while you are self-employed because there are ranges of loan options for you, but they might be limited. Your ability to pay off your loan can get you the money.
Can I get a loan if I don’t have income proof?
No, you need to prove any source that can be the base of offering money by lenders because they are not for free. They are high-interest loans, so your income proof will matter.
What if I’m unable to make my loan payments on time?
If you don’t make your loan payments on time, you will have to bear its dire consequences in the form of fees, penalties and high-interest rates.
Does a self-employed loan affect my credit score?
No, such loans don’t affect your credit score negatively by the time you keep on making your loan payments on time, honestly. Defaulting them accrues high-interest rates on each missing, so you must avoid it.
What to do if my loan application is denied?
It would help if you asked your lender the leading cause which made you face rejection then you need to work on time once you know about it. It could be income and lending criteria weren’t met or pending debts with negative status.
Using the MoneyStar, you may get from R100 to R35,000 in just 5 minutes.
Applying won’t affect your credit score
Micah Sedres
MoneyStar expert Micah strives to navigate finance niches like credit cards, loans, and mortgages easily. She helps hundreds of readers in credit building and provides money management tips. After regularly working for brands like Businesslive.co.za, she joined the MoneyStar.co.za team as a staff writer to develop credit product reviews and comprehensive guides mainly focused on credit scores and loan/card offers.
