Short Term Loan in South Africa - Find The Best Offers
Life is full of big surprises, some good, some not, so it’s hardly surprising that occasionally we need a short term loan.
When you are surprised by emergency home or car repairs, a wedding, or an unexpected bill, it’s good to know you can get help when you most need it.
- Multiple Loan Offers from Lenders
- Get Loan Offers Fast!
- No Extra Cost
Short term loans to help smooth out life’s little bumps are just one of the authorised financial services available to South Africans. Applying for a loan online with a credit provider is quick and straightforward, and the requested funds will be in your bank account in no time.
Short term loan lenders in South Africa
R500
R8000
1 - 3 moths
0% –5% Monthly
Good to know:
- Possible to get a lower interest rate
- Approval possible in minutes
- Up to 3 months repayment period
R100
R5000
1 - 31 days
5% monthly
Good to know:
- Fast disbursement
- Fully online application
- Has initiation fee
R500
R4000
4 - 34 days
4% monthly
Good to know:
- Up to R8000 for existing customers
- Fully online application
- Has initiation fee
R300
R5400
5 - 37 days
5% Monthly
Good to know:
- Fast loan disbursement
- Only lends to employed people
- Only up to R5400 loan
R500
R50,000
1 - 3 months
0 - 5% monthly
Good to know:
- Must be permanently employed
- Must earn over R5000
- Must not be under debt review
R2000
R150,000
12 - 60 months
N/A
Good to know:
- Up to R150,000
- Flexible repayment
- Easy application
R1000
R8000
2 - 6 months
3 - 5% monthly
Good to know:
- Uses bot for application
- Also offers long-term loans
- Earn a minimum of R4000/month
R500
R4700
7 - 50 days
3,2% monthly
Good to know:
- Fast disbursement
- Lower industry average interest rate
- Up to 50 days repayment period
R100
R10,000
1- 3 months
N/A
Good to know:
- Qualify for higher amount next loan
- Interest rate not announced
- Up to 3 months repayment period
What is a short term loan?
As the name suggests, it’s a personal loan you take out primarily for emergency purposes. The repayment of this type of loan is typically just a few months. Although it is cheaper to avoid a short term loan, it is sometimes the only available. That is my Loando helps you find the best rates in South Africa.
Getting a quick loan can be a lifesaver. And as short term loans are unsecured personal finances, they are fast to arrange. There’s no need to provide collateral, like your car or house, which speeds the process of getting your money paid out faster.
Generally, a short term loan involves relatively small amounts of cash that you can pay back within six months or a year. So long as you have a decent regular monthly income and a good credit history, you shouldn’t experience any trouble getting cash paid out.
The level of monthly income, as well as the interest rate payable, vary by lender. The cash amount you can borrow from a lender also varies. Therefore, it’s a smart move to compare various lenders for the best deal. This may not be practical if you need cash urgently, so using Loando will instantly help you find the appropriate credit provider.
What are the main benefits of a short term loan?
There are several benefits worth highlighting. These include:
- Fast and easy online access to finance when you need it
- The loan application process is straightforward
- Repayment of the money borrowed with direct debit will automate the repayment process
- The interest rate is fixed, so you know exactly how much you will need to pay each month
What documents will I need to apply?
Requirements vary by lender, but generally, you will always need the following:
- A valid ID issued in South Africa
- Proof of your home address – This can be a tax or rates bill, credit card statement, etc.
- Your last three payslips or bank statements for the previous three months
The level of monthly income required varies considerably for a short term loan. You will be hard-pressed to find any lender that will accept less than R5000. Many online finance providers will demand more.
You should note, too, that since you will be entering into a credit agreement, you must be at least 18 years old. Some banks will also insist you have an account with them.
What else will I need to get a short term loan?
Apart from these documents, a lender will wish to check that you have a good credit history. They are unlikely to offer you finance if you have a poor credit score due to defaulting on debt payments in the past. Banks and other authorised financial services providers will always want the reassurance of a borrower with a proven track of timely monthly repayments and clearing their debts.
How much will it cost?
The interest rate charged varies significantly between banks and other authorised financial services providers. So, too, does the loan repayment term. This can be as short as a couple of months or as much a year.
A lower interest rate is always better. Be sure to verify how much the total cost will be over the lifetime of the loan period. A slightly better interest rate over a longer loan term will be more expensive than a slightly higher interest rate over fewer months. So it’s worthwhile having definitive answers to these questions before you accept an offer.
Remember to factor in loan protection insurance. This is usually a requirement when taking out a short term loan. This is to protect the agreement in case you die, become permanently disable or develop certain diseases that stop you from earning money during the lifetime of the loan period.
Lenders usually have the insurance included in the agreement, but you can sometimes opt to obtain your own payment protection or use an existing policy you may have.
Is a payday loan the same as a short term loan?
Yes, essentially. Payday loans are identical in that they are unsecured short term loans. However, they diverge on the interest rate.
Payday loans are an exceptionally costly route to emergency funds. They always charge a substantially higher interest rate since the expectation is that you will repay the loan amount in just a week or two.
As mentioned earlier, the interest rate for payday loans is higher because the repayment term is much shorter, meaning you will not be paying the loan for years, which would make the loan ultimately more expensive for a South African.
What is the best online short term loan?
There are many online loan providers for short term loans in South Africa. It would take a lot of effort to request loan offers from all of them individually. Loando helps to cut down the time required in analysing all online loan providers. We provide a comparison table of lenders in South Africa, making it easy for you to compare and select the appropriate lender for you. Make sure you don’t pay more than you have to for the money you borrow.
