Self-employed loans are finances that are given to people who have personal businesses which are not connected to a big private or government institution. Self-employed loans can be understood as personal loans simple because they are private and designed to assist small business to prosper in the competitive market. The finances taken can be used to purchase stock, manufacturing equipment, property and various other things. Self-employed loans are offered by many financial institutions in South Africa such as banks, credit unions, building societies and many more.
Self-employed loans can be easily applied online using electronic gadgets such as mobile phones and computers which have internet access. There are certain requirements that borrowers should possess such as proof of residence, proof of insurance, proof of identification, proof of income and also a valid business plan. Self-employed loans are also offered to people who have at least attained the age of 18 and more.
Loans offered to people who have small business come in two forms, either secured or unsecured, the former is when the financier takes pledges from the borrower such as property as some form of insurance or warranty until the money has been paid back whilst the latter is when the financier takes risks by giving people loans who have bad credit scores. Self-employed loans are given according to the monthly income of the individual and the lesser the income the lesser the loan given.