Payday Loans South Africa

Payday Loans in South Africa

Are you looking for online payday loans to help you get through financially challenging situations? Unexpected circumstances can be frustrating, especially when you’re short of cash. Good thing, there are quick online payday loans available in South Africa that require no paperwork and no credit check to obtain.

*Remember these instant loans will often come with high interest rates so always have a plan in place on how you will pay them back.

What is a Payday Loan?

A payday loan is an instant same day cash loan that you can easily get from a number of micro-lenders in South Africa. Instant same day cash loans are popular among South Africans because of their ease and convenience to obtain. A loan is provided on the same day you applied for it, giving you instant money whenever you’re in a pinch.

Medical emergencies, vehicle breakdowns, and accidents can catch you off guard without any money to spare for these situations. Payday loans in South Africa are meant for urgent situations like these, which is why there are no credit checks done to greatly improve the processing time of loan requests.

Payday loans are also sought after by blacklisted individuals since they require no paperwork.

How Payday Loans in South Africa Work?

Many micro-lenders provide instant payday loans requiring no paperwork on your part. You can also forget about long queues after traveling to their office.

You can apply for payday loans in South Africa by accomplishing an online application form or by giving your creditor a call. Provide them with some basic information about yourself to give them a general view of your profile.

After this pre-assessment, you will be contacted by your creditor to confirm a few information. They will also ask your bank details and a little info about your monthly salary which will help them assess your capability to repay the debt. Once confirmed, you’ll receive a notification regarding the status of your application and you’ll get the requested amount within the day.

Repayment for your same day cash loan is debited from the bank account you gave during the application process.

The amount you can loan usually range from R500 to R10 000. Recurring customers earn the benefit of going through a faster and easier application process, with some being allowed to borrow a greater amount of money than the usual limit.

Payday loans in South Africa are called as such because they have to be paid on your next payday. Most lenders require the loan to be paid within 30 days. Failing to do so will earn you larger fees for late payment.

Payday Loan Interest Rate

Since online payday loans require no credit check and borrowers can get instant approval, expect high interest rates on them. Interest rates vary from 0.10% to 0.20% per day.

Aside from higher than usual interest rates, there are initiation fees and service fees you have to take into account. These payday loan fees can drastically increase your debt, so make sure you settle your instant same day cash loans as quickly as possible.

Applying for a Payday Loan

Although creditors won’t usually ask you to complete much paperwork, they will still require you to submit a few documents that will prove your capability to repay the loan you’re requesting.

Lenders will verify that you satisfy the following conditions:

  • You are at least 18 years of age
  • You have a bank account where a monthly salary is regularly deposited
  • You have a stable source of income that pays a certain amount

Self-employed individuals may also apply but lenders usually look for permanently-employed customers who have a more stable source of income.

You can get more than one payday loan at a time as long as you’re capable of repaying them on the agreed terms. On the other hand, when your application is denied, you may have to wait a few months before you’re allowed to reapply for a short-term cash loan.

Alternatives to Payday Loans

Although same day cash loans are easily accessible because lenders don’t conduct credit checks, you shouldn’t use them for less urgent situations. Instead, seek personal loans and other debt instruments from banks that are offered with lower interest rates. Banks may take a longer time to process your request, require a number of documents to be submitted, and conduct lengthy credit checks but these are all acceptable if you’ll get lower interest rates in the long run.

Instant same day cash loans should be settled quickly to avoid paying more than twice the amount you borrowed. Payday loans in South Africa are known to have the highest interest rates among loan products available in the country. Use only payday loans as a last resort to get you through emergency situations.

Top Providers of Payday Loans in South Africa

Loanable amount: R500 to R2 500

Interest rates and fees: Service fee is R50 per month. For loans under R1 000, an interest fee of 15% is imposed on the loan. For loans over R1 000, R150 is charged plus 10% of the amount exceeding R1 000. Interest rate is at 0.17% per day.

Repayment period: 1 day to 30 days

Loanable amount: R100 to R3 000

Interest rates and fees: Service fee is R60 per month, plus 15% VAT. For loans over R1 000, an initiation fee of R165 is charged plus 10% of the amount exceeding R1 000, excluding the 15% VAT. Interest rate is at 0.17% per day.

Repayment period: 2 days to 32 days

Loanable amount: R500 to R4 000

Interest rates and fees: Service fee is R69 per month which already includes the 15% VAT. For loans over R1 000, an initiation fee of 16.5% is charged on the first R1 000, plus 10% of the amount exceeding R1 000.

Repayment period: 4 days to 37 days but can be extended up to 6 months depending on the contract

Loanable amount: R500 to R8 000

Interest rates and fees: Service fee is R50 per month, excluding the 14% VAT. An initiation fee of 15% is charged on the first R1 000, plus 10% of any amount exceeding R1 000. Interest rate is at 0.17% per day.

Repayment period: Within 30 days

Loanable amount: R500 to R3 000

Interest rates and fees: Service fee is R60 per month, excluding 14% VAT. An initiation fee of R165 is charged on the first R1 000, plus 10% of any value exceeding R1 000. The maximum initiation fee the lender can charge is R1 000, excluding the 14% VAT. Interest rate is at 0.17% per day. You’ll save on interest fees if you repay the loan on the first 5 days after it’s been awarded.

Repayment period: 5 days to 37 days