Money Guide

How to get loans for under debt review customers?

Jan 2, 2024

For many people in South Africa, being flagged as “under debt review” is beneficial. But how to cover an urgent money need during a debt review.

When you are already struggling to repay your debts then your application will be auto-rejected. In this situation, how to get a cash loan? Whom to apply for to get an instant loan? How to get loan approval from African banks? Clear all your doubts about “Loans for Debt Review Customers”.

What is being under debt review?

Under debt review” is a formal process in South Africa also known as debt counselling. This process was introduced in 2007 by the National Credit Regulator (NCR) which is regulated under the National Credit Act. The aim is to help Africans struggling with debt obligations (those who have repayments on their homes, cars, credit cards, and accounts, or are at risk of foreclosure). Debt review helps highly indebted individuals manage debt.

In the debt review process, the consumer is assigned a debt counsellor or debt busters for consultation. When consumers undergo credit counselling, it is reported to creditors and credit bureaus. As long as debts are under review, no legal action can be taken against consumers. Unlike blacklisting, the record of being under debt review is removed from the credit report after the process is over.

How does Debt Review works in South Africa?

  • Step 1: The debt review journey begins with the debt counsellor preparing a ‘debt profile’ based on your financial situation. This is a formal process through which you get listed on the National Credit Bureau’s NCR Debt Help database through paperwork.
  • Step 2: NCR notifies lenders about your application’s debt review process. Your debt counsellor contacts your creditors to confirm what you owe.
  • Step 3: Your debt counsellor negotiates with your creditors to plan a payment program based on the amount owed and various payment periods. This payment plan guides you forward financially until the process is over.
  • Step 4: The debt counsellor makes an offer to your creditors to compromise, which leads to a consent order being issued. It is ensured that the conversation between the counsellor and the credit provider is shared with you.
  • Step 5: You begin making fixed monthly installments to your debt counsellor as part of debt consolidation. After the process is over your debt counsellor issues you a clearance certificate. This certification informs the credit bureaus that you are no longer Under Debt Review.

Benefits and Disadvantages of Debt Review in South Africa

Benefits: Why Debt Review is Good Idea

  • Fixed Simplified Payments – “Debt Review” consolidates payments of multiple loans into one manageable monthly installment. One payment amount for every month and PDA agreed plan reduces consumer stress.
  • Protection from legal action against you: While under debt review, creditors and credit bureaus cannot take any legal action or letters or phone calls against the customer.
  • Your assets remain safe – The credit provider cannot take possession of your assets even if you are over-indebted.
  • Flexible debt relief path: The repayment plan is designed as per the income and expenses so that there is no difficulty in covering the living expenses. If some money comes in, you can pay the additional amount, and if the financial situation is difficult, you can make lower monthly installments.
  • Financial Education and Counselling: Through debt review, a counsellor not only deals with phone calls from your creditors but also gives you an understanding of better debt management.
  • Better Credit Score: If you follow the stipulated plan by the debt counselling/debt review system then it improves your credit score. “Debt Review process” does not leave a permanent mark on the credit report after the process is over.

Disadvantages: Is debt counselling a good idea?

  • Legally, while in under credit review program you are ‘freeze‘ and are not allowed to apply for new credit.
  • During the debt counselling program, until your debt is paid in full, you remain listed under debt review with all credit bureaus.
  • The repayment period of the loan is extended to reduce the monthly installments.
  • Debt review program cannot include all loans on which a judgment (summons) has already been issued, such as home or motor vehicle loans.

Difference between under debt review and being ‘blacklisted’ in South Africa

Under Debt Review

Blacklisted

Under credit review, you go through a “credit freeze,” protecting customers from additional debt.‘Blacklisted‘ is not the actual list where your name is placed, in theory it means a bad credit history or poor credit score.
Voluntary – The customer comes of his own free will.Involuntary – When the borrower show risky credit behavior.
A positive signal towards to all credit agenciesA negative signal for your credit report

What loans are for people under debt review?

Anyone may need extra money at any time. Even while under debt review process, emergency expenses may demand extra credits. Getting a suitable loan during that time may seem difficult but not impossible. That is because, majority of established creditors and banks forbid offering loans to under debt reviews people. During the debt counselling process you can connect with alternative lenders. These lenders work online and may better understand your specific situation. Online lenders designed special loans for debt review customers to suit their needs and repayment ability.

Cash loans from online lenders can help you consolidate debts, pay off existing creditors, or cover emergency expenses that put more stress on your finances.

How online loans work for clients under debt review?

Online loans are an easiest way for people in debt review to get a cash advance without having to step into a bank or loan store. With online loans, the entire process from applying to funding happens online. Most online lenders offer unsecured personal loans to people under review. These loans are designed to suit the needs and repayment ability of customers under debt reviews. You can use these loans to cover short-term expenses such as car/truck repairs or emergency medical bills.

Debt review clients can get pre-qualified in under 5 minutes with a soft credit inquiry, with no bad impact to their credit score. The advantage of online cash loans is that even blacklisted people can easily apply for it. There are minimum eligibility and credit requirements to apply for unsecured online loans in South Africa.

To get a loan urgently with debt review, the online application requires you to submit verification documents such as government-issued ID and payslip or bank statements to prove your income. If you accept a loan offer from an online lender, the money is deposited directly into your bank account. With online loans you can make payments simple by setting up automatic payment. No worry about missing a payment again, leading in a bad remark on your credit report.

How to apply for an online loan while under debt review in South Africa?

5 simple steps to Get Online loans for Debt Review Customers:

  1. Apply Online with Ease: Complete your online application with submit eligibility proofs.
  2. Get Instant Decision: Submit your personal and income information, and receive a loan decision within 5 Minutes.
  3. Choose Needed Loan Amount: If you are approved, choose a loan amount between R500 to R5000 according to your repayment capacity.
  4. e-Sign loan agreement: Read carefully and make sure all your doubts are cleared, only then sign the online loan agreement.
  5. Get approved cash fast: Your loan is deposited directly into your bank account online, anywhere throughout South Africa.

FAQs – Online Loans for Under Debt Review in SA

Can I apply for loan under debt review, if I live in Gauteng province?

Yes, people with debt review can apply for an online loan even while they are in Gauteng South Africa. To get approval for a cash loan, you must have the repayment ability and the required information asked by online lenders.

How long does debt review last in South Africa?

‘Debt review’ status usually takes between 36-60 months to permanently removed from credit report. However, the sooner you repay the loan, the sooner you are declared debt-free by providing a clearance certificate.

Where can I get a R5000 loan even if I under debt review person?

If you want to get R5000 even during debt review, you can apply for a loan from an online lender, microfinance organization, or credit union. However, keep in mind that larger amounts than required will burden you with more debt.

How can I get a loan under debt review without submitting upfront fees?

If you are under debt review, it may be difficult to get a loan without an upfront fee. However, some online lenders offer cash loans to debt review clients with no upfront fees.

Can I get an instant loan for emergency, while in debt review in South Africa?

Yes, if you are under debt review and need a loan urgently, contact online lenders. Most online lenders offer you instant loans to debt review customers 24/7. To get a guaranteed fast decision, you have to fill out a 2-minute online application form with eligibility requirements.

How can I get debt review loans without a credit check?

Yes of course! You can get an unsecured loan with no credit check while debt reviews. Some online lenders based on a source of income offer payday loans without a credit check to debt review customers.

Is it legal for debt review clients to get online loans?

No, it is not legal for under debt review people to apply for online loans. But online lenders believe that debt review customers also deserve easy access to personal loans to cover urgent needs.

Can I apply a loan from African banks as debt review customers?

Yes you can, to apply for a loan from African Banks considers the following points during debt review:

  • Eligibility Criteria: Check the special requirements of African banks for debt review customers before applying.
  • Make the right decision: Most African banks offer personal loans, consolidation loans, or other types of loans with debt review. Choose the most suitable loan according to your income and expenses, affordability, and objective.
  • Debt review status: Be honest and transparent about your debt status when applying for African bank loans.
  • Loan Rates and Terms: Interest rates and terms for debt review clients are different than people with good credit scores, calculate them carefully.
  • Outstanding Loan Amount: African Banks require your credit life insurance to cover the remaining loan amount in the event of death, disability, or retrenchment. Carefully understand the insurance requirements and costs.
  • Consult a debt counsellor: Consult your registered debt counsellor before applying for new credit during debt review.

Are you currently under debt review and need an instant loan? On GoMoney you can apply for cash loans online from specialist lenders. We focus on your current financial situation and find loans for debt review people as per repayment ability. Remember, it is important to choose any loan wisely and review the terms and conditions during debt review.