What are PEP Loans For Blacklisted How To Get

Being blacklisted and financially unstable is extremely difficult since nobody is willing to lend you the money you so desperately need. In such a situation, PEP comes to your rescue and lends you the money you need. 

The application procedure for PEP loans is very simple and straightforward. In fact, you may apply physically as well online through the Capfin portal. However, the loan covenant offered by PEP is a little strict and interest rates charged are higher than market rates. For further details, I suggest you keep reading down below!

What are PEP Loans?

PEP is a retail chain that is known to provide financial assistance to those individuals who are blacklisted as per the Credit Bureau. These black listed individuals may have the worst credit rating and made multiple loan repayment defaults, the PEP loans will still lend you the money based on its own requirements and eligibility criterias. 

PEP Loan Qualification/Requirements

Just because PEP provides loans to blacklisted individuals, doesn’t mean that it just gives out loans to anyone, mind you!. It just doesn’t put too much focus on credit worthiness. Instead, it takes into account the applicant’s ability to repay the loan installments on a timely basis. 

So, PEP would require you to provide your income statements and  valid South African ID to confirm your residence. Your income statement will determine the maximum amount of loan you can get out of PEP. 

How To Get PEP Loan

Apply Via Retail Outlets

• Go to your closest PEP store and talk to the customer care agent. 
• Ask the agent to provide you with a loan application. 
• Fill out the loan application with your authentic information and attach the required documents such as a copy of SA ID and income statement. 
• Submit the application to the agent. 
• The PEP staff will verify the details you provided in the application and evaluate the maximum amount of loan that may be granted to you.
• They will make a final loan offering to you which you may accept or decline. 
• If you accept the loan offering, the amount will be transferred directly into your personal bank account. 

Apply Via Website

Account Registration With Capfin

1. Go to https://www.pepstores.com/page/pep-money/apply-for-a-loan? and click “Powered By Capfin”. 

2. Click the website link in the contact details. 

3. Fill out the registration form, agree to the terms and conditions, and click “Continue”. 

4. You will receive an OTP via SMS. Input it on the screen to verify your new account. 

Login In To Capfin Account

1. Go to https://www.capfin.co.za/apply-now/login and input your SA ID number. 

2. Click “Login” to access your account. 

Apply For The Loan

1. Go to the “Loan” section of the dashboard and click “Apply For Loan Now”. 

2. Fill out the application form, attach 3 copies of latest payslips/bank statements and a copy of your SA ID, and click “Submit”. 

3. Capfin will verify your details and an official will get in touch with you to negotiate the loan terms. 

PEP Loan Terms And Conditions

The PEP loan terms will depend upon your ability to repay the loan. The repayment schedule may extend up to a few months or even a year. The charges and interest rate on PEP loans is considerably higher than that of financial institutions; however, it is compensated by the fact that these loans are easily available to blacklisted individuals. 

You must read the loan covenant very carefully and get aligned with each condition because any breach could lead to further charges and even loan termination. Upon loan termination, you would have to repay the loan principal as well as interest immediately. Non-payment would lead to further surcharges and financial difficulties. 

FAQs

How do I know if I qualify for a PEP loan?

In order to qualify for a PEP loan, you just need to have a few things specifically mentioned by the organization. For instance, you must have a valid bank account, mobile number, and South African ID card. In addition to that, you must be permanently employed and have a constant stream of income. 

Why do PEP loans have a higher interest rate?

PEP loans have a higher interest rate to cover the credit risk. Giving out loans to blacklisted individuals is a risky business since the chances of default are much higher. Hence, to compensate for that risk, the interest rates are set higher than average market rates. 

How can I physically apply for the PEP loan?

You can apply for the PEP loan physically by visiting their branch office. Ask the customer care agent for a loan application and fill it up. Attach the necessary documents with the application such as copies of 3 months payslips/bank statements and your SA ID card. After that, submit the application to the agent and wait for the organization to verify your details and get in touch with you for negotiation on loan terms. 

The Bottom Line

So, it is safe to say that PEP loans are indeed a good option to get instant loans when you are blacklisted by the Credit Bureau of South Africa. Of course, the loan covenant is very strict and interest rates are higher than market rates but at least they will lend you the money when nobody else is willing to do so. 

So, in case you do decide to take out a loan from PEP loans, make sure that you read out the loan covenant end-to-end and understand each clause and renegotiate the terms with the PEP agent, if possible. Once the loan is accepted, make sure that you comply with the terms and make timely repayments to avoid any extra surcharges.