Letocredit: loan details and how to apply

What Letocredit is

Letocredit (letocredit.co.za) is an online loan-matching website for South Africa. It is not a lender and does not issue loans. According to its own disclaimer, the site is not a financial organisation, does not grant microcredits or loans and provides information services only. The site says it charges no fee for its services and that you are under no obligation to use it or to request a loan from any lender shown there. The website is owned and operated by Livornica AM LLC, a company based in the Republic of Armenia.

Loan conditions at a glance

The site notes that interest rates depend on the lender you choose and are set according to your circumstances and credit history. Its own example: R1,000 repaid over 67 days at 0% costs R0 and R1,000 is repaid in total. This is an illustration of the lowest rate, not what every applicant will be offered.

Who can apply

• You are at least 18 years old (Terms of Use).
• You can confirm your identity; the site mentions a Smart ID Card.
• You give accurate personal and income details. The site says any type of income can be indicated.

Individual lenders set their own extra requirements, so a lender may ask for more, for example proof of income or bank statements.

How to apply

1. Choose the amount with the slider on the home page and register. The site says this takes no more than two minutes.
2. Choose an offer from the list of lenders shown to you.
3. Finish the application with the lender, who makes the decision, signs the agreement with you and pays out the money.

The site says the service works around the clock and that in most cases money reaches the card on the day of approval, often within 15 to 30 minutes after confirmation. The timing depends on the lender, not on Letocredit.

What a loan can cost

Under the National Credit Act, the cost of a loan is made up of interest, an initiation fee and a monthly service fee. Letocredit publishes only the overall range of 0% to 36% a year and one example, so ask the lender for the total repayable amount before you sign. The site states that early repayment through the lender has no penalties or hidden fees, but check this in your own agreement.

Advantages and drawbacks

• One registration instead of several separate applications.
• No fee for using the site and no obligation to take an offer.
• Repayment options such as online banking, bank transfer or partner cash desks, according to the site.
• The site says the application can be made at any time of day.

• Letocredit does not decide on your loan, so approval is not guaranteed.
• Your details are passed to partner lenders and may be used for marketing by email, SMS or push messages; there is a data deletion form for opting out.
• The operator is registered in Armenia and the site does not publish an NCR number or a South African address.
• Repayments, statements and complaints about a loan go to the lender, not to Letocredit.

Before you accept an offer

Check that the lender is registered with the National Credit Regulator, read the credit agreement, and compare the total repayable amount and due dates. The site advises taking and repaying loans one at a time rather than several at once. Borrow only what your budget can carry, and consider speaking to a registered debt counsellor if you already struggle with repayments.