Tips to choose a South African company that offer legit loans

Reliability and trust are some of the most important factors to look at when choosing a company that offers loans in South Africa. Needing to borrow some extra cash to get you to the end of the month has become a norm for many South Africans striving to achieve their financial goals.

With so many loan providers to choose from in the country, it is important to choose one that suits your unique needs.

How to choose the right loan provider

Here are some tips from Flow Finance, an authorised and registered provider of loans on what to consider when selecting a loan provider:

Understand the types of loan providers

South Africa offers a diverse range of financial institutions offering loans, each with its own set of products and services tailored to provide for a consumer’s financial needs:

• Traditional banks: Banks offer a variety of products including personal loans, home loans and business loans. These banks typically have strict application processes that require extensive documentation and credit checks.
• Online loan providers: The emergence of online loan providers in recent years have transformed the way South Africans can get cash in their pockets fast. Online providers, like Flow Finance, offer a speedy online application process that also translates into quicker approval times.

The importance of choosing a registered and authorised loan provider

In South Africa, legitimate loan providers should be registered with the National Credit Regulator (NCR), and be members of Microfinance South Africa (MFSA). By being registered, the loan company is required by South African law to adhere to legal and ethical standards set by the financial authorities. This means no Mashonisa can come into your home to take any of your belongings if you are unable to repay your loan.

How can I check if a company is registered?

You can verify a loan provider’s registration by visiting the NCR’s website and searching for the company’s name or registration number. A genuine loan provider will always have this information readily available. Atlas Finance Pty Ltd trading as Flow Finance is an authorised financial services provider (FSP 46412) and registered credit provider (NCR CP 3994).

Loan scams to be aware of

Legitimate loan providers will never ask for upfront payments or guarantee loan approvals without having done a proper assessment of your financial background. If a company asks you to pay a fee before paying your loan into your account, this is most likely a scam. When applying for an online loan with Flow Finance, no upfront fees are required. We ensure that all our procedures are transparent.

Ready to apply for a loan with Flow Finance? Click here to start the application process.