8 Best Short Term Loans in South Africa

Short term loans are a well-liked form of borrowing money. If you are a South African who requires a small to medium-sized loan, you need to look at the best short term loans available in South Africa today.

Short term loans can help you to pay off a big or unexpected expense. They also can help you if you want to consolidate your credit card debts without overburdening your budget with higher interest rates. For whatever urgent use you need a short term loan, it’s good to know which are the best lending institutions to whom you can turn.

We’ve done all the research for you, so there’s no need to choose a lender with the biggest advertising or brightest office sign. The lenders on our list offer the best conditions for short term loans here in S.A.

Best Short Term Loans in South Africa

1. Finance27

Finance27

With a tagline that promises instant, hassle-free loans, Finance27 offer online loans with same day service. It’s a very simple online credit solution for anyone who needs to get money fast and pay it back when their next paycheck comes in. Loans from R50 to R4700 are available for first time and return borrowers.

Loan Term: 49 days
Maximum Loan: R4,700
Minimum Loan: R500
NCR License: NCRCP7084
Contact No: +27 12 941 1572
Website: www.finance27.co.za

Representative Example: If R1,000 is borrowed for 30 days, you’ll repay a total of R1,320. This translates to rep. APR of 389.3%

Apply for a Finance27 Loan

2. Fasta

Fasta

You will find FASTA’s easy to use website very appealing. There’s a sliding scale to choose a loan from R500 to R8000 repayable in 1, 2, or 3 month instalments. At the bottom of the slider is information that tells you immediately what your total fees and interest will be, along with total repayment amount. If you need instant credit without worrying about providing collateral, FASTA have fully automated technology installed on their website that can give you access to your chosen credit amount in under 3 minutes.

Loan Term: 90 days
Maximum Loan: R8,000
Minimum Loan: R500
NCR License: 087 470 0400
Contact No: NCRCP10591
Website: www.fasta.co.za

Representative Example: If R1,000 is borrowed for 30 days, you’ll repay a total of R1,320. This translates to rep. APR of 389.3%

Apply for a Fast Loan

3. Mpowa Finance

MpowaFin

MPOWA offer speedy short term loans online for all those little emergencies that pop up when you least expect them. Past clients say they were impressed by how quick and easy it was to get an MPOWA loan. They make it simple for you to submit documents, and once they have your details on hand, you can apply for further mini-loans subject to your current circumstances.

Loan Term: 31 Days
Maximum Loan: R5,000
Minimum Loan: R600
NCR License: NCRCP6666
Contact No: 0861 233 233
Website: www.mpowafin.co.za

Representative Example: If R1,000 is borrowed for 30 days, you’ll repay a total of R1,320. This translates to rep. APR of 389.3%

Apply for a Mpowa Loan

4. Lime

Lime

Lime show their appreciation to customers who use their financial services more than once by offering them subsequent loans with up to 50% less interest. The Lime website has a user-friendly sliding scale that you can use to pick what amount you require, and for how long you need to take to repay the loan. Minimum and maximum amounts of R300 up to R5 400 can be borrowed. Repayments can be made from 5 days to 35 days. Lime aim to offer flexible loans with transparency and security.

Loan Term: 36 days
Maximum Loan: R5,400
Minimum Loan: R300
NCR License: NCRCP8077
Contact No: 010 442 0627
Website: www.lime24.co.za

Representative Example: If R1,000 is borrowed for 30 days, you’ll repay a total of R1,320. This translates to rep. APR of 389.3%

Apply for a Lime Loan

5. FinChoice

FinChoice

With FinChoice KwikAdvance, you can apply for a short term loan on the go by only using your cell phone. The FinChoice Kwik Advance loan package offers loan amounts up to R3500. Although they have a range of financial packages from which to choose, the Kwik Advance is the best for quick cash into your bank account. The comprehensive website guides you to select the amount you need and how long you wish to take until repayment.

Loan Term: 31 days
Maximum Loan: 3,500
Minimum Loan: R500
NCR License: NCRCP454
Contact No: 0861 346 246
Website: www.finchoice.co.za

Representative Example: If R1,000 is borrowed for 30 days, you’ll repay a total of R1,320. This translates to rep. APR of 389.3%

Apply for a FinChoice Loan

6. Konga

Konga

If you qualify, Konga can offer you up to R5000 with repayment over 35 days. With their easy automatic transfer options, your application and Konga’s decision can be made on the same day. The simple 4-step application process may be the fastest way to get funds in a procedure that can take as little as 5 minutes.

Loan Term: 35 days
Maximum Loan: R5,400
Minimum Loan: R300
NCR License: NCRCP10807
Contact No: 011 8971931
Website: www.konga24.co.za

Representative Example: If R1,000 is borrowed for 30 days, you’ll repay a total of R1,320. This translates to rep. APR of 389.3%

Apply for a Konga Loan

7. Boodle

Konga

Boodle aim to bring a smile to your face with their easy to apply quick loans. You can borrow from R100 up to R4000 with payback due from 2 days to 33 days. Knowing in advance what your interest fees are going to be is made very transparent on the Boodle website. If you like the terms offered after entering the amount you want and how many days you need to borrow it for, then you click to get your Boodle now. It’s as simple as that.

Loan Term: 32 days
Maximum Loan: R4,000
Minimum Loan: R100
NCR License: NCRCP5361
Contact No: 0861 266 353
Website: www.boodle.co.za

Representative Example: If R1,000 is borrowed for 30 days, you’ll repay a total of R1,320. This translates to rep. APR of 389.3%

Apply for a Boodle Loan

8. Wonga

Wonga

Wonga have a very straightforward approach to lending money to new or existing customers. Newcomers can get a loan of up to R4000, and previous customers can borrow up to R8000. Whatever amount you feel comfortable borrowing, you will have up to 3 months in which to pay it back. All you have to do is click on the website, choose the required loan amount and terms, and get started.

Loan Term: 90 days
Maximum Loan: R4,000
Minimum Loan: R500
NCR License: NCRCP12875
Contact No: 0861 966 424
Website: www.wonga.co.za

Representative Example: If R1,000 is borrowed for 30 days, you’ll repay a total of R1,320. This translates to rep. APR of 389.3%

Apply for a Wonga Loan

How to Choose the Right Short Term Loan for You? We Answer Your FAQ Here

What is the Difference Between an Unsecured and a Secured Loan?

A secured personal loan is backed up by a valuable asset that can be seized by the bank if the loan is not repaid. An unsecured loan means you can borrow money without having to produce a valuable asset, such as a car or house, to use as collateral. The short term, payday loan services listed here all offer unsecured loans.

Another difference between secured and unsecured loans is the amount. Unsecured loan amounts are smaller.

What is the Difference Between a Payday Loan and a Short Term Loan?

Payday loans are typically used in emergencies for when you receive an unexpected expense in the middle of the month, that has to be paid now, and you can’t wait until your next salary is deposited into your bank account. The repayment for these loans are deducted on your next paydate.

Short term loans are generally repaid over a longer period, usually up to 3 months.

Is My Credit Rating Important When I Apply for a Short Term Loan?

Because short term online loans are unsecured, the lender relies on something else to guide them: your credit rating or credit score. If you have a good credit rating, your loan will be instantly approved with no problem. The best way to build up a good relationship with your short term loan service provider is to start by taking out a small loan that you can repay very easily.

Every time you repay a small loan on time, your credit rating goes up. By starting with a small loan – say R500 – you can establish a long term relationship with your lender who will trust you to borrow larger amounts in the future.

Can I Take Out a Short Term Loan When I Only Get Paid in Cash?

If you can show in bank statements that you make regular weekly or monthly cash deposits, a lender will be able to track you have regular employment and make a decision based on that. You don’t always need to have your salary deposited directly into your bank account to qualify for a loan.

What Happens if I Stop Making Payments or Can’t Make a Repayment on a Short Term Loan?

If you stop making repayments on an unsecured loan, and don’t contact your lender, you can lower your credit rating and be blacklisted from applying for further financial assistance. Always check the office hours the online short term lender offers you before committing to a loan. You can always contact your lender during office hours to inform them of a repayment delay or problem. If you neglect to contact your lender, they can sue you for the remainder of the loan amount.

Are There Any Drawbacks to Taking Out an Unsecured Short Term Loan?

Unsecured loans are quick and easy to obtain if you have all your paperwork ready and access to a device. Because the loans are granted on good faith that repayments will be made at the agreed time, lenders have to ensure they are covered in cases where there is a late repayment or default.

This means that short term loans sometimes charge higher fees and interest rates compared to secured loans. This is because the lender carries a greater risk. If you don’t have access to proof of earnings the lender needs, such as bank account statements, ID, salary slips, or solid credit rating score, you might struggle to get a lender to approve your short term loan application.

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The biggest benefit of taking out a short term loan is the super-convenience and easy access. You don’t have to suffer through an awkward interview with a bank manager or explain to anyone what you need the money for. The money gets deposited into your bank account and you repay your loan within the agreed time period. This is why more and more South Africans are turning to short term loan websites when they need quick cash.