Are you short of cash that you won’t last until your next payday? Or maybe you’re in an emergency situation wherein you need additional cash to pay the medical bills of a family member? Whichever the case is, your need is the same: additional cash that you can get in the shortest time possible.
There are short-term loans available in South Africa that can solve this problem for you. Take a look at what South African lenders have to offer.
What is a Short-term Cash Loan?
Short-term cash loans offer a quick way to obtain extra money in the shortest time possible. Lenders can provide instant cash which you can use to pay for basic expenses or emergency situations. You can also use the money to get through your daily expenses until the next payday arrives.
The amount you can borrow is limited, as well as the timeframe you’re required to repay the debt. In return, lenders are able to charge higher interest rates because they’re risking more on this form of unsecured loan.
It’s preferable to pay your balance from a short-term cash loan as soon as you can. This kind of loan has a high interest rate and often several times more expensive than long-term loans.
How do Short-term Cash Loans in South Africa Work?
Usually, creditors don’t impose strict requirements to approve your loan request. Unlike long-term loans that go through strict scrutiny, short-term cash loans can be approved without any credit check. Some lenders will only look if your next salary can fully cover the loan you’re asking for.
There are also creditors that are quite lenient in giving extensions to those who can’t pay the debt within the required timeframe. However, expect extra charges to be included in your next repayments.
For those who have bad credit ratings, short-term loans are the answer to their prayers. Many short-term loan providers are also amicable to those who are blacklisted from applying for long-term loans.
The biggest downside of short-term cash loans is that they’re incredibly expensive compared to long-term loans. Aside from high-interest rates, there are initiation fees and service fees added to the amount you’re borrowing. They’re probably the most expensive form of financial product available to individuals and businesses alike.
Relying on short-term cash loans can be disadvantageous in the long run. Short-term loans are more suitable for circumstances where you just lack the funds to pay for something that needs immediate attention.
Applying for a Short-term Loan
Many lenders of short-term loans in South Africa have websites that allow you to apply for a loan online. Some sites provide dynamic visuals and loan calculators that give you the amount you have to repay based on the amount and term period you specify.
Creditors of short-term loans often require only the most basic information from their clients. Usually, they’ll be asking for your ID number, monthly income, monthly expenses, and employment details. In addition to these, they may ask for your payslips or bank statements for the past 3 months.
Once approved, the amount you asked for will be deposited directly into your bank account. Processing of short-term cash loans may take only a few hours to a day to get approved.
Repayments are done automatically as they’ll debit the agreed amount the moment your payday arrives.
Top Providers of Short-term Loans in South Africa
There are many short-term loan providers in South Africa. However, you might want to go with those that have a solid reputation in the lending industry. Take a look at some of them on the list below: