RainFin Offers Loans Without Using A Bank

RainFin is an online website that allows ordinary South Africans to lend money from other South Africans. It’s described as a peer-to-peer lending platform. Put into simpler terms, RainFin offers loans without using a bank.

Peer-to-Peer lending is a new smart way to lend money. It is like banking between friends and relatives, with the difference that you can bank with thousands of people.

The finance and capital does not come from RainFin, it comes from other users who have extra money that they would like to invest.

As a borrower there a number of benefits to using RainFin. Firstly, if you are not able to get money from the banks, maybe you can get it from individual investors. Secondly, because you are not dealing with a traditional bank, you don’t have to accept their high interest rates, you may be able to secure a much lower interest rate on your short term loan.

Get A Loan While Under Debt Review

Get A Loan While Under Debt Review

Is it possible to get a loan while under debt review?

If you are one of the thousands of people undergoing debt review ( also known as Debt Counselling), you’ll know that the debt counselling process doesn’t give you total financial relief from your debts.

Depending on the fluctuations in your income, you may find that you’ll need extra finance to meet your new commitments.

The debt review process is governed by the law in terms of the National Credit Act and enforced by the National Credit Regulator. This means that if can be very difficult to get a loan while under debt review. Especially an unsecured personal loan or credit card account.

The first step to take if you’re feeling the pressure with mounting debts, or lack of cash flow is to sit down and analyse your financial situation yourself. Double check all your income flows and all your payments. In fact, do a full household budget, and see if you have anything leftover that you can use to get yourself out of your current situation.

If you don’t see anyway out of it, in the near future, you can always apply for a lifeline loan or a payday loan. There are companies out there who will provide you with finance, and you will be able to immediate cash as long as you are employed. You may need to provide some sort of security for the loan, and will have to provide some proof income too.

While completing the loan application, make sure you check it out to thoroughly and make sure that the loan repayments are in accordance with what you can afford. The interest rate will definitely be much higher that that of a normal mainstream bank.

In conclusion. Yes! You can get a loan while under debt review. You will be able to get a loan from some lenders you there who are not the mainstream banks, but the trade-off is that you’ll have to settle for a higher interest rate and perhaps the loan repayment terms will a lot shorter too.

Before signing for anything, check out the agreement, make sure you can afford the repayments and you’ll have you money quickly.

Note: It is advisable to be very careful before committing to such a loan as it will probably come at a higher than normal interest rate.

Using Personal Loans For A Deposit On A House Purchase

Although more full 100% bonds are being granted by the banks, most home loan applicants are still required to come up with at least a 5% to 10% deposit on any house purchase.

A 10% home loan deposit on an average property in South Africa is going to amount to between R60 000 and R80 000.

It could easily take years to save up 10% of any property price, and this is one reason why many new home buyers are exploring the option of using a Personal Loan as a deposit on their home loans.

Using A Personal Loan As A Deposit Is Not Always The Smart Option

Taking a personal loan to help secure the property finance you need to buy a house is not always advisable, but it can be a great convenience and it can help you get your foot into the property market.

The personal loan should only be considered if you have enough disposable income to safely cover the monthly payment. Remember, you will also be paying a large Home Loan repayment for the next 20 – 30 years.

Personal loans are usually offered up to a maximum of R100 000 and are payable over a much short term. These short term loans are unsecured and therefor are charged that very high interest rates.

Why These Personal Loans Are Popular

One of the reasons why these loans are popular among first time buyers is because they are very likely to gradually increase their income each year – making the monthly debt repayments much easier as time goes on.

Another reason is because, banks are surprisingly more willing to offer unsecured personal loans over a shorter 5 year term, verses granting a large home loan over a much longer 20 or 30 year term.

But, the excitement and strong desire to own your own property will likely play a very important role when considering if you are able to wait and save a cash deposit or take the extra personal loan.

Take the time to consider all your options and speak to your broker before deciding, this is going to be one of your biggest financial decisions.

Alternative Option

An alternative option might be to look at a Rent To Buy Property that will enable you to rent the house to love, while you save up the deposit you’ll need for the bond.