Many of us find financial help when in need, but not all lenders play by the rules and blacklisted individuals have a really hard time getting loans.
Old Mutual offers small business and personal loans to blacklisted individuals, but not everyone qualifies for them.
In this article we explore the policies of Old Mutual, if old mutual offers loans to blacklisted and how you can check if you’re eligible for their lending services.
But before then, let’s quickly understand what is meant by being blacklisted.
What is blacklisting?
Blacklisting occurs when a lender reports you to a credit bureau as having defaulted on a loan. This makes it harder for you to get future loans as your credit score is affected by black listing.
If you want to buy a car or house, rent an apartment, or apply for a job with a credit check, this could make it difficult.
Depending on your country, blacklisting could last 5 years or indefinitely. If you’re blacklisted, you need to find a way to get off the list before you can get approved for loans again.
Key takeaway: Does Old Mutual offer loans to blacklisted individuals
One of the great things about Old Mutual is that the company offers a debt consolidation loan to people who are blacklisted or have a bad credit score in South africa.
Debt consolidation involves borrowing money to pay off several smaller loans. Old Mutual will make those payments to your various credit accounts on your behalf.
Combining your debts into a single loan relieves you of the stress of multiple repayments and gives you more time to pay off your loan at lower monthly payments.
In South Africa, the company has a blacklisting policy in place, meaning that it can provide credit to people who have been reported to credit bureaus as having defaulted on a loan.
This can be a huge advantage to people who have been blacklisted and are in need of a loan.
What are Old Mutual Loan Requirements
Before you apply for a loan, make sure you’ve completed your research and know what you’re getting into.
You and your business partners need to be comfortable with the terms of the loan, and you need to have the cash flow to be able to pay it back.
You’ll be needing to submit the following details before your loan would be processed.
- A valid ID
- 3 months’ bank statements
- Your most recent payslip, as proof of employment
- Be 18 years or older
Checking your eligibility for a loan from Old Mutual
To check if you’re eligible for a loan from Old Mutual, you need to complete a short questionnaire. This will help the company determine if you’re eligible for their lending services and what kind of loan you might qualify for.
Remember that even if you do qualify, there’s no guarantee you’ll get the loan. You’ll have to go through the usual steps and apply like everyone else.
Knowing your credit score is key to getting a loan from Old Mutual. If you have a bad credit score, you can use our tips for improving credit and see if you can bring it up before filling out their questionnaire.
The better your score, the more likely you are to get approved for a loan. But mostly, old mutual only offers debt consolidation loans.
How does Old Mutual determine if you’re eligible for their lending services?
Old Mutual uses three key data sources to determine if you’re eligible for their lending services.
Credit Report – This is the report that credit bureaus provide lenders so they can check your credit score. If you’ve been blacklisted, this will show up on your report.
Credit Score – This is the number lenders use to determine how risky it is to lend to you. The lower your score, the higher your risk and the more money you’re likely to pay in interest.
Collateral – If you have assets you can use as collateral, it will help you get a lower interest rate.
Conclusion: Does old mutual offer loan to blacklisted in south africa?
The short answer here is yes, old mutual would offer you a debt consolidation loan regardless of if you’re blacklisted or not.
With a debt consolidation loan, you can combine all your loans and credit accounts into one.
To get a debt consolidation loan from old mutual while blacklisted, you’ll have to submit a valid ID, 3 months statement, your most recent payslip as a proof of employment, and you must be over 18 years old.
