5 Essential Requirements for a Successful Loan Application

 

For better or worse, loans have become an integral part of modern life — everyone uses it, whether it's to address unforeseen emergencies or simply to improve our standard of living. Personal loans in South Africa provide financial support to achieve your goals and fulfil your aspirations.

 

This is why it’s important to understand exactly what the requirements for personal loans in South Africa are so that you can access extra funding right away when you need it. While different lenders work have different underwriting processes, most of them will ask to see the following:

 

Good credit score 

 

Having a good credit score shows lenders that you’ve handled your finances responsibly in the past and could even help you qualify for more favourable loan terms. 

 

Verifiable income

 

If you’re employed, you will need to submit your most recent pay slips or bank statements showing your income for the last 3 months (or longer, depending on the lender). For those who are self-employed, you will need to provide bank statements and/or an audited annual financial statement for your business prepared by an accountant.

 

Proof of address

 

To verify that you are indeed a resident of South Africa, lenders will ask for proof of address. This can be your utility bill, retail accounts, bank statements, or lease agreement in your name.

 

Proof of identity

 

In most cases, a South African barcoded ID is the only document needed to prove your identity. A valid passport or driver's license may also be accepted as long as it is accompanied by a sworn declaration signed by a commissioner of oaths.

 

Financial health

 

If you want to borrow a large amount, some lenders will require you to provide a detailed breakdown of your monthly expenses, including any existing debt obligations. Compile or list all your expenses, such as rent/mortgage, utility bills, groceries, and any other recurring payments.

 

At FindBetter, we can connect you with professional debt counsellors and reputable loan providers who can help you navigate the loan application process and provide guidance on managing your finances. 

Source: https://findbetter.co.za/5-essential-requirements-for-a-successful-loan-application/

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