If you’re looking for a quick and easy way to get some extra cash, you might have heard of Boost Loans. They claim to offer personal loans up to R8000 with no credit checks, no paperwork, and no hassle. Sounds too good to be true, right?
Well, before you apply for a Boost Loan, you might want to read this article. I did some research and found out some interesting facts about this company. Here’s what I discovered:
What is Boost Loans?
Boost Loans is an online lending platform that operates in South Africa. They provide short-term loans ranging from R500 to R8000, with repayment terms from 4 to 35 days. They charge a fixed interest rate of 5% per month, plus an initiation fee of 16.5% of the loan amount and a service fee of R60 per month.
To apply for a Boost Loan, you need to:
- Be a South African citizen with a valid ID
- Be at least 18 years old
- Have a bank account in your name
- Have a regular income of at least R3000 per month
- Have a valid email address and phone number
You can apply online by filling out a simple form and uploading your ID, bank statement, and payslip. You’ll get an instant decision and, if approved, the money will be transferred to your account within 24 hours.
Sounds easy enough, right? But there’s a catch.
What are the risks of Boost Loans?
While Boost Loans may seem like a convenient and fast way to get some extra money, there are some serious risks involved. Here are some of them:
- High fees and interest rates. Boost Loans charges a very high interest rate of 5% per month, which translates to an annual percentage rate (APR) of 60%. That’s much higher than the average APR of 27.5% for personal loans in South Africa On top of that, they charge an initiation fee of 16.5% of the loan amount and a service fee of R60 per month. This means that if you borrow R1000 for 30 days, you’ll end up paying back R1275. That’s a whopping 27.5% of the loan amount in fees and interest.
- Short repayment terms. Boost Loans offers very short repayment terms, from 4 to 35 days. This means that you’ll have to pay back the loan in full, plus fees and interest, in a very short time. This can put a lot of pressure on your budget and make it hard to meet your other financial obligations. If you miss a payment or default on the loan, you’ll face additional fees, penalties, and legal action. This can damage your credit score and make it harder to get credit in the future.
- No credit checks. Boost Loans claims that they don’t do any credit checks on their applicants. This may sound like a good thing, especially if you have a bad credit history or no credit history at all. However, this also means that they don’t report your payments to the credit bureaus. This means that paying back your loan on time won’t improve your credit score or help you build a positive credit history. On the other hand, if you fail to pay back your loan, they will report it to the credit bureaus and negatively affect your credit score.
- Lack of transparency and regulation. Boost Loans is not a registered credit provider in South Africa This means that they are not regulated by the National Credit Act (NCA) or the National Credit Regulator (NCR). This means that they don’t have to comply with the rules and standards that protect consumers from unfair and abusive lending practices. For example, they don’t have to disclose the full cost of the loan, the APR, the total amount repayable, or the consequences of non-payment. They also don’t have to follow the prescribed debt collection procedures or the debt review process. This means that you have less protection and recourse if you have a dispute or complaint with them.
What are the alternatives to Boost Loans?
If you need some extra money, there are better and safer alternatives to Boost Loans. Here are some of them:
- Save up. The best way to avoid debt is to save up for your expenses and emergencies. Try to set aside some money every month in a savings account or a stokvel. This way, you’ll have a cushion to fall back on when you need it, without paying any fees or interest.
- Borrow from friends or family. If you have a good relationship with your friends or family, you might be able to borrow some money from them. Just make sure that you agree on the terms and conditions of the loan, such as the amount, the repayment period, and the interest rate (if any). Also, make sure that you pay back the loan on time and in full, to avoid damaging your relationship.
- Apply for a personal loan from a reputable lender. If you have a good credit score and a steady income, you might be able to qualify for a personal loan from a reputable lender, such as a bank, a credit union, or a microfinance institution. These lenders are registered and regulated by the NCA and the NCR, and they offer more reasonable and transparent terms and conditions. They also report your payments to the credit bureaus, which can help you improve your credit score and access more credit in the future. However, you should still shop around and compare different lenders, and only borrow what you can afford to repay.
Here are some frequently asked questions about Boost Loans:
Q: How do I contact Boost Loans?
- A: You can contact Boost Loans by phone at 087 551 0687, by email at [email protected], or by visiting their website at boostloans.co.za.
Q: How do I check my Boost Loans balance?
- A: You can check your Boost Loans balance by logging into your account on their website, or by contacting them by phone or email.
Q: How do I pay back my Boost Loans?
- A: You can pay back your Boost Loans by debit order, electronic funds transfer (EFT), or cash deposit. You should pay back your loan on or before the due date, to avoid any late fees or penalties.
Q: What happens if I can’t pay back my Boost Loans?
- A: If you can’t pay back your Boost Loans, you should contact them as soon as possible and explain your situation. They may be able to offer you a payment plan or a loan extension, depending on your circumstances. However, you should be aware that this will incur additional fees and interest, and that you’ll still be liable for the full amount of the loan. If you don’t pay back your loan, Boost Loans will take legal action against you, which may include garnishing your wages, seizing your assets, or blacklisting you.