Private loans can be understood as personal loans that are given to people by financial institutions to purchase property and cater for various other expenses. Private loans are given by both public and private institutions to finance people and companies with money payable after a certain period of time. Finance companies require some documents such as proof of income, proof of dentification, proof of insurance, proof of residence and many more.
Private loans are only given to people who have attained at least the age of 18 and more. Depending on the financing company, private loans can either be secured or unsecured. The former is when the finance company use the property of the borrower as some form of a warranty until he or she has paid up whilst the latter is when the finance company takes high risks by offering loans to people who have bad credit score and does not qualify to get money from banks. Private loans are largely used for personal issues either to start a personal business or to cover various other expenses that personally affect the borrower.
There are many companies in South Africa that offer private loans to companies and individuals at lower interest rates. Private loans can easily be applied through the use of electronic gadgets such as mobile phones and computers connected to the internet. Supermarkets and clothing companies also offer small private loans to people who use their services.