Where do you turn for funds when there’s an emergency or you hit a cash crisis?
We offer a rundown of the types of short-term loans available if you need money urgently in Gaborone.
Personal bank loans
Most banks in Gaborone offer short-term loans to existing clients who qualify.
The loan amount that’s available usually depends on the applicant’s monthly salary. Repayment plans typically vary from three to 12 months.
If you’re unemployed or have a poor credit record, it’s likely you’ll be refused a bank loan.
With the extra economic pressure caused by COVID-19, banks have again tightened their lending criteria. In other words, it’s harder to get a loan than in the past.
When applying, you’ll need to provide paperwork like payslips, bank statements covering three months, a letter of confirmation from an employer and proof of residence.
The approval process for a loan can take several days to complete. So it might be a while before funds show up in your bank account.
Payday loans
Payday loans are microloans that have to be paid back on the following payday. Only employed Batswana are eligible for this type of unsecured loan.
As with bank loans, lenders require proof of income. The fees are usually excessive and the interest charged on the loan is much higher.
If the borrowed funds aren’t paid back, penalties are imposed, debt collectors get involved and personal assets can be seized to cover the losses.
Microloans
Microlenders in Gaborone offer nominal cash loans with repayment periods ranging from one to three months. Applicants need a regular income to qualify.
In some cases, your ATM bank card must be handed over as security for the duration of the loan. This isn’t in the client’s best interests.
Soft loans from Gaborone loan sharks
When you’re unemployed, you may be tempted to borrow money from a loan shark. Loan sharks are unregulated lenders who typically offer their services on social media. That’s the first red flag.
They’re also prepared to lend substantial amounts of money – there and then – without a written agreement or confirmation of the fees and interest charged on the loan. That’s the second red flag.
In Gaborone, it’s common for loan sharks to charge as much as 50% interest. When you can’t meet your financial obligations, you may find you – and your family – are in physical danger.
Pawning a personal asset
Pawning a high-value asset is an increasingly popular way to raise money. Worldwide, the asset-based lending sector has grown at a phenomenal rate.
With the arrival of lamna in Botswana, it’s now possible to get an asset-based loan in Gaborone.
If you own a valuable asset and will be in a position to pay back the borrowed funds, the process is exceptionally straightforward.
You’ll be offered a loan amount based on the value of the asset you supply as collateral.
If you choose to proceed, you hand over the asset for the duration of the loan period. Once the loan is repaid, the asset is returned to you, in the same condition you left it.
Typically, the funds are transferred to you on the same day you apply.
Benefits of asset-based loans from lamna Botswana
- 24-hour turnaround time
- competitive interest rates
- no hidden fees
- no effect on your credit rating
- no risk to the rest of your assets.
lamna Botswana
We can help if you need money urgently in Gaborone. At lamna Botswana, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or original works of art.
For more information about using an asset to secure a short-term loan, contact us on 71 388 088 or simply complete and submit our online application form.