Lulalend is a South African fintech that provides working capital and funding to small businesses. Your business can get funding for between R20,000 and 1.5 million. Application for business loans take around 24 hours. The application is paperless and you do not need collateral to access a loan.
- 1 Lulalend Requirements for a Business Loan
- 2 How to Apply for Lulalend Business Loan
- 3 How to Repay Lulalend Business Loan
- 4 Lulalend Interest Rates
- 5 Lulalend Business Loan Fees
- 6 Features of Lulalend Business Loan
- 7 Lulalend Customer Support
- 8 Lulalend Pros
- 9 Lulalend Cons
- 10 Is Lulalend Legitimate?
- 11 Final Word on Lulalend Business Loans
Lulalend Requirements for a Business Loan
To qualify for a Lulalend funding, you need to meet the following minimum requirements.
- Your business must be incorporated in South Africa
- Your business needs to have at least R500,000 annual revenue
- Your business must have been in existence for at least 1 year
How to Apply for Lulalend Business Loan
To access Lulalend loan, you need to register for an account online. You also need to fill an application form where you are required to provide details about your business and the kind of loan you want. After that, you need to upload your latest bank statement or link your online bank account with your Lulalend account. The information you provided will be reviewed and a response will be sent to you.
The information is reviewed using an AI-powered system and human analysts. Lulalend evaluates your business using real-time performance and then determines if your business qualifies for the loan. This makes it easy to make a decision whether to accept or decline lending your business.
If your loan application was approved, you will receive funds into your account within 24 hours.
How to Repay Lulalend Business Loan
You have two options through which you can repay Lulalend business loan. The first one is through standard installments in 6 or 12 months. This way, you will be paying 1/6 or 1/12 every month of the amount advanced to you.
You will be charged between 2% and 6% of the amount advanced to you in the 2 or 4 months. For the remaining months, you will be charged 2%.
Alternatively, you can opt to repay your loan earlier and you won’t be charged early payment penalty.
Lulalend Interest Rates
Lulalend personal loans attract an interest rate of 28%. The repayment duration is usually between 3 to 10 years. You can borrow up to R1,000,000.
Business loans attract an interest rate of between 2% and 6% of the amount advanced for the first 2 or 4 months. For the rest of the months, the interest rate is 2%.
Lulalend Business Loan Fees
Lulalend charges the following fees.
Monthly fees. Monthly fees usually range between 2% and 6% for the first 2 to 4 months. For the rest of the months, you will be charged 2%. You can reduce the amount payable by paying your loan earlier. You won’t be charged penalty fees for early repayments.
You are required to repay your loan in 6 or 12 monthly plans. You can pay 1/6 or 1/12 of the amount advanced plus the monthly fee.
Features of Lulalend Business Loan
Some of the features of Lulalend Business loan include:
- Flexibility. You can opt to pay in 6 months or 12 months installments. Their loans do not have hidden fees and you can calculate how much you will repay before borrowing.
- Fast processing. When you apply for Lulalend loan, not only takes 24 hours to have funds deposited in your account.
- Online application. You can apply for the loan online and you do not need any paperwork or collateral.
- No penalty for early payments. You will not be charged a penalty if you repay the loan before the due date.
- Short-term loans. The maximum duration for Lulalend loan is 12 months. This prevents borrowers from accumulating too much debt.
Lulalend Customer Support
You can reach Lulalend by phone or email. Lulalend contact details are: 087 943 2381 / 021 201 1550 / [email protected]
- No hidden fees
- No penalty fees for prepayments
- Fast application process
- Free application
- High-interest rates
- High annual turnover requirement of R 500,000
Is Lulalend Legitimate?
Yes, Lulalend is legit and safe. Lulalend is a registered business which has been trading since 2014 as Lula Lend (Pty) Ltd. It is a member of The South African SME Finance Association (SASFA), an organisation which encourages transparent and responsible lending to small businesses. As a SASFA member, the company subscribes to a code of conduct that is focused on protecting SME customers.
Final Word on Lulalend Business Loans
If you are looking for funding for your business, you need to consider Lulalend. They do not charge prepayment fees. However, their interest rates are relatively high. Also, they have high annual turnover requirement of R 500,000 which many be too high for startups.