4 Peer to Peer Companies to get Loans in South Africa
Some people believe that the way banks and other financial institutions do business is time-consuming and too bureaucratic. This idea paved the way for the creation of online platforms bringing borrowers and lenders together. If you are interested in learning all about peer to peer loans in South Africa, keep reading this article. You will be introduced to this innovative credit solution, you will get information about four companies that offer this service, you will find out how to qualify for it, and more.
How does P2P Lending Work in South Africa?
P2P lending is a novel instrument that can be beneficial both for borrowers and lenders. First, let’s see how it works. This is a practice that involves borrowing or lending money with the aid of an online platform that matches two individuals: the borrower and the lender. Most of the loans offered within the framework of P2P are unsecured loans, that is, no security is needed.
Above we said that this type of lending is beneficial for both parties. This is true because the online companies offering P2P loans charge lower fees than banks; allowing lenders to earn more money and borrowers to pay less in interest rates than they would with traditional banks.
It is important to understand that the online platform that offers this service is not the lender: it is the medium by which lender and borrower are connected. Generally, they perform credit checks on the borrowers to guarantee that the loan will be paid back. The amazing feature of this platform is that, as you will see further on, you can also access funding from investors around the world.
4 Peer to Peer Lending Platforms in South Africa
Although this practice is rather new, there already are some P2P companies offering this service in South Africa. As we said, this practice has benefits for both parties involved in the credit process. So, if you are looking to invest or earn an extra amount of money or if you need to borrow cash to start your business or to solve a problem, P2P can be the best solution. You solve a problem, while you earn or save some money unlike a loan or a credit card.
In this article, we want to concentrate on four peer to peer lending platforms of our country. First, we want to tell you which are your options and later we will go in-depth to let you know all about them. You will discover how the process works, how you can qualify, and which the main benefits are. We will discuss the following alternatives:
- EKASI BUCKS LENDING
The Best 2 Peer to Peer Lending Sites of South Africa
There are many options when it comes to loans in South Africa, but if the conversation is about P2P, the best two options are PeerFin and RainFin. No doubts about it. Both companies offer online platforms allowing borrowers and lenders to connect without taking the trouble of filling out tedious paperwork or paying excessive fees or rates.
Find the best loan of South Africa
PeerFin was established in 2013 by an individual with outstanding accounting and credit operations experience. The aim of the creator of PeerFin was to bring people who need money and who want to invest money closer and to make the process easy and affordable. With this company, you can borrow up to R75 000 with a repayment period of a maximum of 12 months.
RainFin, on the other hand, was set up in 2012 with the aim of removing the barriers to credit that many South Africans find themselves trapped in. They developed an easy-to-use system that lets you borrow money from the comfort of your own house. This company offers business loans from R250 000; ideal to start your business!
What are the Requirements to Transact with Peer to Peer Lenders in South Africa?
The companies that offer P2P online platforms are not the ones borrowing the money; they merely act as nexus connecting two needs. However, they will be in charge of assessing if you are eligible to take out a loan through their portal. How do they do this? Well, they need information: your personal data and, more importantly, your financial information. How much do you earn? Are you permanently employed? Can you provide proof of income such as your payslips and bank statements? Do you already have other loans with other financial institutions?
Thus, you will need to provide this information for them to approve the loan. You will usually be requested to give them:
- ID (South African)
- Being over 18 years of age
- Last 3 receipts of payment
- Latest bank statements (3)
- Proof of residence
Depending on the company where you request the P2P loan, other requirements might apply. For instance, Ekasi Bucks Lendings also requires you to have a valid bank account under your name and a valid e-mail address and cellphone number. Ekasi Bucks Lending offers an online way to access to a maximum amount of R50 000.
When we listed the 4 most-known companies that offer P2P loans in South Africa, we mentioned Ovamba. This company targets small business people who want to grow with loans provided by foreign investors. These investors are mainly from the United States, the United Kingdom, and Japan. This company has more stringent requirements than the ones mentioned above: you might have to provide information about your company.
Peer to Peer loans are the future, and they are here to stay. If you are considering to grow or tostart your business, this is your best shot: access to money to make your dreams come true at the best rates of the market. And, if you are on the other side of the board, and want to invest without paying expensive fees and getting through a backlog of paperwork, P2P is also the right fit for you. Our aim was to make you see that there are other more innovative and affordable ways of accessing finance. Now you are familiar with the most important P2P platforms of South Africa and what you need to participate in this novel and lucrative trend.
Questions and answers
Can one make a loan and pay it back within days of taking out the loan?
Yes, of course. In South Africa,you can apply for a short-term loan and pay it back within days. This is so because short-term loans are typically designed to be paid out quickly. There are several online lending platforms that offer peer to peer loans and a very convenient repayment period.
Do P2P platforms offer loan to self-employed individuals? Can they help me?
Yes, of course. P2P platforms offer personal loans to self-employed people who are looking for financial help. This type of platform connects borrowers with investors who are willing to lend money. You will find flexible eligibility criteria, which means more accessibility to self-employed individuals. Some of these platforms are Peerfin, Rainfin, Ekasi Bucks Lending, etc.
Hi, I have 3 accounts I would like to settle. I pay R4,078 as a monthly combined instalment. 2 of them are in areas and I need assistance to pay them off and focus on one payment and in return pay R1,500 to R2,000 a month. Can anyone help?
If you have 3 accounts and wish to settle them all, then you can consider the possibility to apply for a debt consolidation loan with a bank or any reliable loan provider. In this case, you will be able to combine the three accounts into one single payment. As regards paying between 1,500 or 2,000 rand, you will need to negotiate with the lender according to your affordability capacity.
What is the minimum amount of money required to become a lender?
There are no specifications as regards the minimum amount of money which is required to become a lender, since it depends on each company. However, there is an online application process you can start, in which you inform about your financial situation and earnings. Then, the company will analyse your information and decide if you can become a potential lender.
How can I be an investor in this P2P lending company?
If you want to be an investor in a P2P lending company, you will need to complete an online application on the platform. Usually, you will need to provide information as regards the reason of your loan, how much you need, and the repayment period you prefer. The company will analyse the application and will determine whether you can qualify or not.
What are the tax implications?
In order to know about the tax implications and interest rates, it is important to determine which platform or P2P company you are resorting to. For example, in PeerFin, the interest rate can reach 1.95% per month. It will also depend on the repayment period you choose. This company makes sure that clients do not pay excessive fees or rates.
Can one be assisted with a home loan of +/- R 250,000 rand?
Usually, you can resort to a P2P company to obtain a loan, for example, with PeerFin. There is not a maximum amount established you can obtain. It depends on the type of loan you are looking for and the guarantee you can offer to the lender. When applying on the platform, the investors will analyse the offer (250,000 rand for a home loan) and decide if they accept.
I need a 50,000 rand loan as soon as possible.
If you are looking for extra money to cover a personal need or to solve a problem, then P2P companies are a good choice. Some companies offer this service in South Africa for borrowers and lenders. If you need 50,000 rand, you can apply in both PeerFin or RainFin. The application process is simple and quick.
What is the maximum amount that Vomba can lend.
The maximum amount of money that you can receive with Ovamba will depend on the size of your business and also on the arrangements you make with the lender. Usually, this type of lending system must include benefits for both, the lender and the borrower. With this money, you can start your own business or make an investment.
Good day, do you give consolidation loans?
Usually, debt consolidation loans constitutes a service that is offered by accredited institutions and financial private companies. If you resort to peer to peer lending, you will be able to obtain money to start a business or to solve an economic problem, for instance, to pay off debts. This type of lending should be beneficial for both, lender and borrower. There are some online platforms which can help you out to find the best rates.
Hi, I want to finish my house and start an air bnb but I don't qualify for any loan. Can peer lending help me out? I need 40000 to finish my house.
It would be important to know why you do not qualify for other loans in the credit lending market of South Africa before we can fully answer this question. P2P platforms allow people who need finance to meet other people who want to invest their money by borrowing it. These people will need to have guarantee that you will be able to pay them back, so you will need to prove your affordability and to have a clear history of credit and banking.
Do I qualify as a self-employed person and what is required.
Peer to Peer Lending (P2P) is a type of lending that allows individuals to borrow from other individuals without any financial institution interfering in the operation. These parties are met in online platforms, such as RainFin. So, if you are self-employed you might be able to request a loan through RainFin as long as this company decides after studying your affordability whether you would be able to pay the loan back.
I am in urgent need of a loan of R25000, can you please check and let me know if I qualify thank you.
If you need a P2P loan, one of your options is Rainfin. These loans are mainly targeted to companies or business owners, though. If this is what you are looking for you can start an online application and see if your loan can be approved. However, if you are looking for a traditional loan, please refer to our articles to find how to apply.
I want to borrow 5000 with peerfin, how do I apply?
Remember that Peerfin used to be peer-to-peer lending platform. However, they have recently changed their business model to an asset backed lending approach. In order to apply for a loan with this company you will need to contact them since they have not implemented online applications up to this moment.
I need to borrow r200.000. I do have an offshore account with secure trust bank/uk to pay back the loan. Many thanks, keith
Hi, Keith. If you enter Peerfin’s site, you’ll find how to apply for one of their loans easily. When you send your loan request, Peerfin uploads it to the platform after approving it and then, the investors will check it to see if they want to make you an offer. Finally, you can accept the offer you think best suits you.
I’m pensioner, can I get 3000/4000 loan?
As you would have to pay the instalment through a bank account, as long as you have one, you can try to get a loan. This is one of the great advantages a peer to peer lending company offers. Anyone having sufficient monthly income and credit score will have the opportunity to obtain a loan.
Can I get a 4000 loan with Peerfin? How much will I pay?
As regards Peerfin’s loan simulator, these are the terms you may get for that quote. To start, the option may be 3, 6 or 12 months to repay. Taking a 6 months’ term and, supposing a rate of 23.40 %, you should pay R822.89 rands each month. Just to compare a shorter term, you would have to pay R1534.34 per month over 6 months.
Do you assist permanently employed foreigners with valid wok permits in South Africa?
There are plenty of lending companies accepting granting loans to foreigners as long, of course, the foreigner applicants have the valid documents to work in the country. As you are among that group because you have your SA work permit, you can find a loan in South Africa. Apart from that and, being permanently employed, your credit profile will be the final factor to decide if you qualify.
How much money can I borrow from a peer to peer lending site?
There isn’t a maximum quote for P2P Lending. When you apply on the platform, you must specify the loan you are looking for and, the investors will analyse it to decide if they want to work with you.
What’s PeerFin phone number?
PeerFin contact number is 08 78 02 53 89.
Is it mandatory to present a security with a P2P lending?
No, some P2P Lending sites request collateral but, others don’t.