Getting a Loan without Proof of Income in Johannesburg
Getting a loan in Johannesburg can be challenging if you’re retired or unemployed.
Banks won’t make a loan without proof of income – even if you know you can repay the loan.
Fortunately, you can use an asset to secure a loan easily and quickly.
Collateral loans: a convenient option if you’re unemployed
Collateral loans are backed by high value assets, such as paid-up property, vehicles, investment accounts, jewellery, Krugerrand coins and luxury watches.
The asset is pledged to the lender in exchange for cash.
The loan must be paid back in installments within an agreed time frame.
If the loan isn’t paid back according to the contract, the lender sells the asset to cover the loss.
As the funds are secured by the asset, the risk to the lender is covered.
Your employment status, repayment history and credit score are irrelevant.
Benefits of a collateral loan
The key benefits of a collateral loan in Johannesburg are:
- the asset maximises your chances of getting approval for a loan
- interest charged on the loan is comparatively low
- the loan is approved on the same day
- you retain ownership of your asset.
Pawning a vehicle: a low-risk option
Although other types of personal loans are available if you have no income, many are risky or involve loan sharks and scam artists.
Pawning a vehicle is a popular type of collateral loan backed by the appraised value of a car, bakkie, motorbike or truck.
Once a fair market value has been attributed to the vehicle, the loan provider lends funds based on that value.
The terms are agreed and the vehicle is handed over to the loan provider for the duration of the loan period.
The money is then transferred into your bank account.
Once the funds have been repaid, the vehicle is returned to you.
Why it’s best to avoid pawn-and-drive schemes
There are finance companies in Johannesburg that offer pawn-and-drive loans.
These schemes may seem like a great idea because you’re permitted to drive your car for the duration of the loan term.
However, this type of arrangement makes borrowers vulnerable.
Often, ownership of the vehicle is transferred to the lender. The borrower then rents their own vehicle back – often at an extortionate rate.
At the end of the loan term, the borrower may even have to buy back the car.
Pawn My Car branches in Johannesburg
With Pawn My Car, you can get a loan without proof of income at one of our conveniently located branches in Johannesburg.
We adhere to fair business practices as outlined in the National Credit Act and offer interest rates compliant with the Act.
The Pawn My Car Sandton and Pawn My Car Florida branches are easily accessible and operate during office hours.
You can use a car, bakkie, truck or boat that’s in your name to secure a loan quickly and easily, with no delays or laborious paperwork.