For many people seeking loan solutions, having access to various financial institutions may be ideal. While banks may have stringent qualifying criteria, there are some micro lending institutions that may offer alternative solutions. This is why it’s never a good idea to get a loan from a loan shark.
For instance, not all lenders are responsible and registered with the National Credit Regulator (NCR) and they aren’t all compliant with rules set by the National Credit Act. So it’s important to make sure that as a borrower you spend enough time shopping around to make comparisons. Don’t borrow from loan sharks, but only from registered credit providers.
A report about a loan shark in Nelspruit who was killed is evidence of the violent tactics that often underlie these types of transactions.
More about a loan shark in Nelspruit who was gunned down in an incident at a mall
Mr Elphin Nkosi (61) died at Rob Ferreira Hospital in Mpumalanga in an incident in late 2016. The man was shot in front of midday shoppers at the Promenade Shopping Centre.
According to reports, Nkosi was reportedly a loan shark in Nelspruit.
Mr Deda Jan Mashele (57) was arrested for the shooting by Constable Bonisile Thwala who was off-duty and on the scene.
Good reasons to avoid loan sharks
Getting loans from loan sharks could send you into a debt spiral.
You will be charged extremely high interest rates.
Loan sharks often use violent tactics to ensure repayment.
When searching for a loan, it’s important to be wary of unsolicited offers. You should be sure to check for the lender’s records.
Make sure that you read contracts.
Investigate alternative options. Turning to loan sharks is not the way to go.
Take some time to examine your spending habits.