If you are a self-employed person, you can still get a loan from a bank in South Africa. Although most banks would rather lend to borrowers with a steady monthly salary, there are banks that would consider self-employed people as long as they have a valid South African driving license and can provide 6 bank statements as proof of residency. Here are some guidelines to make the loan process easier.
For the African Bank, you can also apply for a personal loan for self-employed with no proof of income loan as a self-employed person. All you need to do is provide your bank statements for the last six months and your income statement. You should also provide a recent salary slip from your company. Those who don’t have bank statements may be able to secure a loan by pledging collateral. The loan amount will depend on your credit history and affordability.
You can choose between secured and unsecured loans for self-employed people. Secured loans are better if you can provide collateral, while unsecured loans are more flexible and will suit your repayment schedule. In addition to paying back your loan, self-employed loans may also be a great way to buy a home or car. You will need a steady income and patience in filing your documents.
In addition to pledging collateral, you can apply for an unsecured or secured loan. Secured loans require collateral while unsecured ones don’t. Unsecured loans don’t require collateral but have a higher interest rate. The upside is that you can set the payment schedule according to your budget. For self-employed individuals, loans for no proof of income in South Africa are more flexible, allowing you to pay back the loan on your own time. You can get up to R300 000 for a small business loan. The credit provider will typically check your income history to determine whether or not you are a good risk to them.
Although self-employed individuals face tough conditions when applying for a personal loan, they can still prove that they are a good candidate for a loan if they can demonstrate their income. Many reputable banks and online lenders will not require you to provide W-2s. You will also need to provide a utility bill as proof of residency. In general, you’ll need to show a steady source of income to be accepted.