Short term loans in South Africa are fast becoming the popular course of action to cover emergencies of all kinds.
When it comes to car accidents and breakdowns, medical emergencies or even travel expenses, short-term loans can do wonders.
Interested in learning more about the type of short-term money loan you qualify for? This blog outlines what you need to know.
Short-Term Money Loans Explained
A short-term money loan is exactly what it says on the package: a small loan amount which can be borrowed and repaid in a shorter time frame.
Most short-term loan providers in South Africa are far less stringent in their protocol for loan approval, hence their increase in popularity.
When compared to taking out a loan at the bank, the approval time and processing is far less scrutinized and time-consuming.
However, there are a few important qualifying factors you’ll need in order to be approved for a short-term loan:
- You need to be a citizen of South Africa
- A valid South African identification document
- You must be over 18-years-old
- A valid bank account
- A valid cell phone number
Conveniently, most short-term loan payment cycles are 30-days long. This means you can make each loan repayment when payday arrives each month.
To add to this, loan amounts are 100% flexible. Loan amounts can be set according to the amount of credit you need and repayments you can afford.
Terms and Conditions of Short-Term Loans
Quick personal loans are most commonly provided by online lenders and a few major banks throughout South Africa.
If you’re looking to borrow money online or take out a short-term, personal loan, look for the following terms and conditions:
- A monthly repayment that is not more than 5% of your monthly income
- A fixed monthly payment that does not inflate with the interest rate
- No balloon payments
- Loan terms of a period ranging from 3-12 months
If an online lender does not supply these basic terms and conditions, it may be worth your while looking elsewhere.
Common Types of Short-Term Loans
Most online lenders and banks will offer similar types of loans to choose from, they are generally classed as:
- Short-term loans in a day or two, also known as instant cash loans
- Short-term loans in a week or less
It’s important to remember to do your homework before taking out a short-term loan with just any online lender.
This could save you thousands in sky-high annual percentage rates and highly inflated interest payments.
Instant Cash Loans
With an instant cash loan, you can usually apply for a loan in the morning and receive approval or disapproval that same afternoon.
The approval process takes just a few hours and results are usually sent via email or SMS.
These types of loans are usually guaranteed as long as you have been open and honest with your personal data and credit standing.
Once approved, the money is transferred to your personal bank account immediately. The maximum amount for an instant cash loan in South Africa is usually R4000 and needs to be repaid over a period of 60 days or less.
Short-Term Loans in a Week
These types of loans are ideal if you have a little more time on your hands and want to shop around for the best repayment package.
Most online lenders and some South African banks offer larger loans which take approximately a week to process and approve.
However, the exact amount of time may depend on your individual application, the loan amount and your current credit standing.
Repayment rates will vary from one online lender or bank to the next. Make sure to do your homework and settle on a flexible payment plan which suits your budget.
Looking For an Instant Loan?
At Little Loans over 100,000 South Africans and counting have been granted access to the money loan they need in an instant.
If you’re looking a fast loan of up to R8000, submit your loan application with Little Loans today!