Loans for Self Employed Individuals in South Africa – Affordable Solutions for Financially Disciplined Individuals

Overview

Being self-employed comes with a number of challenges that may often seem insurmountable. Aside from the challenges that are associated with starting a business or even working as a freelancer in various industries, these individuals often face a lot of difficulty when attempting to apply for a loan. For a long time, getting a loan seemed almost impossible, but things are changing. One of the biggest determining factors when it comes to lending decisions in South Africa is an individual’s employment status. In South Africa, individuals who are self-employed are often considered unreliable for payments. These individuals are viewed as high risk candidates with unpredictable earnings. This often works against individuals. Some traditional lending institutions such as bank make it explicitly clear that self-employed individuals do not qualify for their loan products.

Lenders are more inclined to grant loans to those who have demonstrated financial discipline in the past. Decisions are also based on the business’ or individuals’ ability to pay the loan back.

CBT Africa is a financial institution that offers finance of up to R150 000 at affordable interest rates.

General documents to have on hand when applying for loans include:

• 3 bank statements
• D. Copy

With a loan from an institution such as CBT Loans, you are able to handle expenses related to education, unexpected medical costs or even car repair costs. As a business owner, you may also get access to finance to help you with business needs.

Loan offers are no longer only afforded to individuals who are permanently employed. Although change is slow, the industry is steadily conforming to changing employment trends in the country.