An unsecured loan does not name an asset as security in the same way that secured borrowing does. It still creates a repayment obligation.
What to check
- The agreement
- payment schedule and any insurance requirement
Ask for the amount actually paid out, every required payment and its due date. Put two quotes on the same basis before choosing.
A decision to avoid
Assuming unsecured borrowing carries no consequences if payments are missed.
A calculation you can check
Illustration only: cash received R2 000; three payments of R750; a separate required charge of R50. Total paid = 3 × R750 + R50 = R2 300. Difference from cash received = R2 300 − R2 000 = R300. This difference is not an annual interest rate. Include the charge only if it is outside the three payments; do not count it twice.
Questions about this decision
What should I check first?
An unsecured loan does not name an asset as security in the same way that secured borrowing does. It still creates a repayment obligation.
Which information do I need for this decision?
The agreement, payment schedule and any insurance requirement.
Which mistake should I avoid here?
Assuming unsecured borrowing carries no consequences if payments are missed.
How do I check the agreement?
Locate the actual dated record for The agreement. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
How do I check payment schedule and any insurance requirement?
Locate the actual dated record for payment schedule and any insurance requirement. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
What should I do if a required detail is missing?
Mark it as unresolved. Ask for that precise detail before choosing; do not substitute an advertised example for your own document.
What is the next practical step?
Ask for the amount actually paid out, every required payment and its due date. Put two quotes on the same basis before choosing.
How can I verify the explanation?
Use the documents listed above. Check quoted amounts and dates in the original record; use the official reference links for the organisation’s guidance.
