Can you get a loan in South Africa if you are not working? Yes there are loans available for unemployed people with no income. You have to think slightly differently than normal as there are a few finance options available.
Loans you can get if you are not working include:
- Pawn Shop Loans
- Loans from Private Lenders
- Micro Loans
Being unemployed can be stressful when there’s no money coming in. Because of this some people make unwise decisions on their financial situation.
Unemployment figures in South Africa for 2021 are not available yet but you can check the latest figures up to the end of 2020 here.
You can see the unemployment rate in South Africa according to these statistics is 28.48 percent.
Borrowing money without a job is certainly possible with these loans. However it is our position to remind you to be careful what you are applying for as well as who you borrow from.
Because there are plenty of private loan sharks in South Africa that offer quick cash with no paperwork.
Therefore avoid them.
Advantages of Loans for Unemployed People:
- There are no Credit Checks
- No Paperwork
- You can get cash quickly
- No Bank Statements
- Qualify without proof of income
Get A Pawn Shop Loan If You Not Working
Firstly you can get a pawn shop loan in South Africa if you not working.
A pawn shop loan works by you using personal goods as a form of security against borrowing cash from the store.
If you have personal items that are in good working condition you may be able to exchange them for an instant loan from a pawn broker.
With this type of loan there is no credit checks so you can still qualify if you are blacklisted.
No bank statements on these loans either. Because you are using your goods as security it makes no difference if you have no income.
Cash Crusaders loans in South Africa are an ideal place to get a pawn shop loan that is fair for both the lender and the borrower.
This may be of interest you: Cash Crusaders 30 Day Loan in South Africa
Emergency Cash Loans For Unemployed People from Private Lenders
If you need a loan in an emergency and you are unemployed another option is from private lenders.
So what do we mean by private lenders?
By this we mean preferably a person you know well. For example a close friend or a wealthy family member.
You need to tread carefully with a loan from a private lender if it’s someone close though.
If you end up in a position where you cannot pay back the money you owe there’s a chance of ruining a good friendship. Or causing family arguments.
However we would still recommend you borrow from someone that you know when you are desperate for a loan. Agreeing to a loan from a private lender you don’t know could mean you pay high interest rates.
At least interest rates are negotiable if you borrow cash from a friend or family member.
There are private lenders online in South Africa that offer finance solutions. However our advice to you is stay away from these credit providers.
Apply For Micro Loans Without A Job
Even if you have no job you can still apply for certain micro loans in South Africa.
Microlenders offer small loans to people who are in need of money urgently.
You can get a micro loan with no income although you will have to show proof that you can pay it back. Or you need someone to co-sign for the loan.
A co-signer will be responsible for any outstanding amount if you cannot afford to pay back the cash you borrow from a microlender.
Microlending companies in South Africa mainly operate in Cape Town, Johannesburg, Pretoria, Durban and Port Elizabeth.
This may also be of interest to you: Personal Loans for People under Administration
Which of These Loans Offer the Best Interest Rates in SA?
Between a micro loan, a pawn shop loan and a loan from a private lender, the private lender option is your best bet for low interest.
Micro lenders may take advantage of you if you’re unemployed and if they think you are a risk to lend money to.
A pawn broker will negotiate interest on a loan with you. So here you can try and get a low interest rate percentage from the pawn shop.
However a private lender will be the best one to negotiate with. Especially if you are a close friend or family member.
In addition if you are really close to the person you borrow from there may be a chance to get an interest free loan.
In Summary
These are our pick of the best loans you can get if you not working in South Africa. There are other options although some are too dodgy for us to recommend.
The important points are to make sure you get the lowest interest rate possible and that you can afford to pay the loan back.
Be sure to do enough research before you decide who you’re going to be borrowing money from.