R10 000 loan is a short term loan that is available in South Africa when in need of money urgently. The amount is https://best-loans.co.za/ small and can be used for any number of purposes. If you plan to pay rent or mortgage, car repair or replacement of damaged vehicle, you can use the money to finance these expenses. These are some of the uses of the money from the R10 000 loan.
Service Fees and Premiums: Service fees and premium are charged to customers who fail to repay loan installments on time. Service fees and premium are also charged when borrowers fail to make minimum payments on time. When the terms and conditions of the contract are not met, the borrower is liable to incur a penalty. This amount is called a penalty fee. The penalty fee is not included in the amount sanctioned under the lending option and hence, it serves as the repayment would for the defaulted amount.
The amount of the minimum payment per annum is fixed and cannot be altered at any point of time. Borrowers are required to pay three percent as a service fee and three percent as premium annually. There is another number of four months, for which the borrower is liable to pay the penalty fee. In case, he does not repay the borrowed amount in time, he would have to pay the penalty fee up to the total of fifteen days. The total amount of the penalty would be deducted from the contingency fund and if the borrower still fails to make the monthly repayment, he would have to face legal action.
R10 deposit is a sum of money that is sanctioned on the basis of two things; one is the credit life premiums and second is the contingency fund. The amount of the credit life premiums depends on the age of the person. The higher the age, the more the premium amount is. The amount of the contingent fund is decided when the loan is sanctioned. If the borrower delays the repayment, he would have to face legal action.
One needs to calculate the minimum amount that needs to be paid monthly in order to make the payments. This should not be more than ten thousand dollars. This amount will be divided into four equal monthly payments. It will be sanctioned twice a month. Hence, it is important to make the monthly payments on time in order to avoid penalty charges.
R10 loans carry a very high interest rate. The rate may go up to twenty percent or even thirty percent. One needs to pay the penalty fee if he fails to make the monthly payments. If the rate of interest goes above twenty percent, the borrower is eligible for the interest free period. The amount of the interest free period is also fixed and cannot be increased. After the interest-free period, the borrower is liable to pay the normal interest rate.
R10 loan can also be used to consolidate multiple loans. In this case, all the amounts which are due will be combined into a single amount. This amount will then have to be paid back within a specified period of time. R10 loans also do not charge any late payment or penalty charges.
R10 loan is beneficial for all those people who have a bad credit rating. However, if one has a good credit rating, he can opt for the regular one instead. A regular one offers a fixed amount of money over a fixed term. If one wishes to pay it off faster, he can opt for the accelerated installment scheme. However, in this case, the payment made is also more expensive.