If you need a personal loan, just pick up the phone it's that simple.
Direct Axis, a telephone marketing company, last week announced a new paperless loan scheme.
The company has launched telephone call centres in Johannesburg and Cape Town.
It will mail a pre-selected group of people on its database inviting them to take a loan of up to R12 000. The loans will be granted by Boland Bank.
If you receive a letter from Direct Axis, you will be able to call a toll-free number and make your application over the phone.
A risk assessment is done almost immediately. Within two hours the company will let you know whether you qualify for a loan.
The money will be transferred to your bank account by the next banking day, provided your application is approved before 3pm.
Michiel le Roux, managing director of NBS Boland, says there needs to be a change in the public's mindset regarding banks and their willingness to lend you money.
"The truth is that to survive, banks must lend money," he says.
The bank needs to be concerned about risk, but "if a client is creditworthy, he should not feel that he is under suspicion, he should be treated like a king".
Karl Westvig, Risk Manager at Direct Axis, says you have the option of paying back the loan over one to five years at fixed interest rates, which are charged according to the Usury Act.
This means that for a loan above R6 000 you will pay 29 percent interest. A loan for less than R6 000 will cost you up to 32 percent in interest.
You have the option of a personal protection plan at a monthly premium of R1,30 for every R1 000 loan. There is also a monthly administration fee of R5 on the insurance premium.
This will ensure repayment of your loan if you die or if you become permanently disabled.
You do not have to provide security to qualify for the loan.
And if you're thinking of pulling a fast one because you have not signed on the dotted line, don't. A verbal contract is legally binding in South Africa.
The problem in the past, says Eric Seton-Smith, general manager banking services at Direct Axis, has been to prove the content of the verbal agreement.
To overcome this Direct Axis will make it clear that they are recording the conversation when you apply for a loan.