Are you looking for payday loans online 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. These are also sometimes known as bad credit loans as they are accessible to those with a bad credit score. However, these urgent loans come at a high cost. Payday lenders will usually charge the highest interest rates on any cash advances.
*** 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.
Compare the Best Payday Loans in South Africa 2021
|Loan Company||Description||Amount Range||Repayment Period||Links||Apply|
|R500 - R2,500||1 - 30 days||More Info||Apply Now|
|FASTA offers three types of loans; Cash in bank, In-store credit and Online Credit.||R500 - R8,000||1 - 3 months||More Info||Apply Now|
|R100 - R4,000||2 - 32 Days||More Info||Apply Now|
|R500 - R4,000||4 - 37 days||More Info||Apply Now|
|R500 - R8,000||61 - 180 Days||More Info||Apply Now|
|R500 - R3,000||5 - 37 days||More Info||Apply Now|
|Apply Online or at any Absa ATM machine (no need for paperwork or long phone calls)||R250 - R8,000||1 - 35 days||More Info||Apply Now|
|Apply Online for an Instant Cash Loan. They provide cash loans on the same-day if you apply before 3pm on weekdays. |
Loan up to R8000 across a maximum period of six months.
|R250 - R8,000||1 - 6 Months||More Info||Apply Now|
|Lime Loans meets the regulations set out by the NCR (National Credit Regulator). They offer short term loans up to R5,400.||R300 - R5,400||5 Days - 7 Weeks||More Info||Apply Now|
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. You will be required to pay back the loan amount with a fixed monthly payment. Loan applications are now easier than ever with a number more online lenders offering these short-term loans.
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. This type of loan is a lot more accessible so no need to sit in traffic making visits to offices or bank branches with all your documentation, they are one of the most popular online loans. Payday loans are usually unsecured loans which means they are not secured against any personal assets such as a home or car (as a secured loan is). This means that those with those with poor credit score are more likely to be accepted.
You can apply for payday loans in South Africa by accomplishing an online payday loan application form or by giving your creditor a call (or with the ABSA Instant Cash loan you can even apply at an Absa ATM). 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.
Loan 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 ranges 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. Therefore it is especially important to make your payments on time, 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 with your online application 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
Depending on the personal loan lender, they may also check your credit history as you would expect from a reputable lender. However, these are often soft credit checks and they are more likely to accept those with a lower credit rating.
Self-employed individuals may also apply but payday loan providers 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 loan 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 unless it is really a financial emergency for unexpected expenses. Instead, depending on your financial situation, you should 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, requiring a number of documents to be submitted, and conduct lengthy credit checks but once 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. Only use payday loans as a last resort to get you through emergency situations!