Life can be very unpredictable. A sudden incident can turn everything around without warning.
You’re living within your means and you don’t spend much. You’ve paid your bills for the month and bought all the provisions you need. Suddenly, a family member got into an accident and your financial assistance is needed.
Your monthly salary would have been enough to cover the medical expenses only if you hadn’t spent it in paying your bills. What you need now is a quick cash that you can repay on your next payday. This is where payday loans online become very useful.
What is a payday loan?
A payday loan is a short-term loan designed to give your cash reserves a quick boost for urgent needs. They’re especially useful in emergency situations where you just fall a little short on cash. Payday loans are meant to resolve your unexpected, short-term financial problem that you’re experiencing.
Payday loans are called that way because you’re obliged to settle the debt on your next payday. It’s like borrowing from your employer in advance to pay for something urgent.
The loan repayment will automatically deducted from your bank account. The bank account needs to be the same account where your monthly salary is deposited by your employer.
Banks usually don’t provide this kind of loan. The closest thing they can offer is a personal loan. However, this will take days to even weeks to get processed. Aside from that, you have to undergo a credit check when you borrow money from banks.
This is one of the biggest advantages of a payday loan. Payday loans can be processed in a day since they’re meant to cater to urgent needs. There’s also no credit check involved in the application process so you can obtain it even if you have a low credit score.
How to apply for urgent payday loans online?
Lenders who offer urgent payday loans can be found online. All the details you need to know about their offer can often be found on their websites.
Typically, they’ll have an application form ready on their site. All you need to do is supply it with the required details about why you need the loan. Once you’re done, submit it and wait for their representative to call you. You’ll be asked to submit other documents during the process after you pass the preliminary qualification.
You can borrow an amount anywhere between R100 to R4 000. Some can even raise it up to R8 000, depending on your situation. Return customers typically benefit from faster processing times and bigger loanable amounts.
Payday loans usually have a term of 1 to 30 days only. Some may offer more than that but it’s really not advisable to go beyond this timeframe to avoid the burden of heavy interest rates.
Another thing that differentiates payday loans from other kinds of debt is the repayment amount. Unlike other loans where you can pay the debt little by little every month, you have to repay the full amount you borrowed on your next payday.
To qualify for the loan, you have to satisfy the following requirements first.
- You’re at least 21 years of age
- A citizen of South Africa
- You have a regular source of income
If you’re qualified, you have to submit the following documents to your lender before they finally approve your loan.
- Latest payslips
- Three months’ worth of bank statements
- A copy of your ID
Banks will take weeks to process your loan request. However, since smaller lenders that give quick cash loans don’t require credit checks, your papers can be processed within the day.
Fees and Interest Rates
Most lenders that offer payday loans charge their clients with initiation and service fees. These additional fees are included in computing the amount you have to repay.
Lenders Offering Quick Payday Loans Online
These lenders are some of the most trustworthy in the business.
Always scrutinize the details about the lender you’re dealing with. Online transactions are prone to hacking so make sure your lender uses a reliable security protocol to avoid giving away sensitive data to unauthorized persons. Make sure you always read the fine print of your loan contract to avoid getting tricked by dubious lenders.
As much as possible, it would be better to avoid getting into these kinds of loan. Make sure you have 3 to 6 months’ worth of living expenses stashed, along with an emergency fund.
Payday loans are highly accessible to South Africans. This doesn’t mean you have to take it even though you don’t really need it. Use payday loans only for urgent needs to avoid paying the high interest rates associated with it.