Short-term Loans
Access short-term loans of between R500 and R8,000 with repayment terms of up to 6 months from SAs leading lenders.
View Short-term Loan OffersAccess short-term loans of between R500 and R8,000 with repayment terms of up to 6 months from SAs leading lenders.
View Short-term Loan OffersIf you find yourself short on cash or just need a cash injection to make things happen, a short-term loan could be the ideal solution.
Not only can you quickly complete your application online but you'll get your cash within minutes.
A short-term loan in South Africa could offer you amounts of up to R40,000. This type of loan, as with all credit offerings, are subject to your credit profile, affordability, and eligibility.
The repayment term associated with short-term loans typically varies from 1 month up to 12 months. In some cases, lenders may offer longer loan terms. Interest rates are between 20% and a maximum of 27.5% per annum.
When you find yourself in financial difficulty, the first thing you should do is to establish what you need the money for and how much you’ll need. Short-term loans are typically acquired for things like a vehicle breaking down unexpectedly or a medical emergency. Borrowing more than you need could result in greater financial difficulty in the long run.
Applying for a short-term loan in South Africa is getting easier and more convenient. With the age of technology nowadays you can apply for various types of financing online, from the comfort of your home or office.
You can complete an online application and submit any documents required without going anywhere.
To qualify for short-term financing, you need to reach a certain criterion. Responsible lending involves following the rules as stipulated by the National Credit Act and South African law. To qualify for a loan you need to:
There are various reasons why the acquisition of a short-term loan could be beneficial and a good solution during a difficult financial time.
Every credit offer available comes with its own set of pros and cons. It’s important to be well-educated on responsible lending. Short-term financing might sound appealing but could lead to many future financial difficulties.
Obtaining a short-term loan reflects on your credit score. When you apply for a loan, the lender will do a credit check which causes your credit score to drop by a few points. Having or applying for multiple short-term loans will also have a negative impact.
When you have several credit facilities that exceed your credit-to-income ratio, this too reflects negatively against your name. Say for example your credit availability is R20,000 and you’ve used R15,000 thereof, your credit ratio is 75% and that causes a negative effect.
This often indicates impulsive and irresponsible borrowing and does not only affect your credit score negatively but also influences the interest rate you’re offered.
Comparing loans helps you to find the best loan option available. With the many options available it could become difficult. To simplify the comparison process, there are some main factors to prioritise:
Because of the shorter repayment terms associated with these loans, the interest rates tend to be higher than that of other loans. However, the National Credit Act stipulates that the maximum interest rate that can be charged should not exceed the current repo rate plus 21%.
Initiation fees for the provision of the loan are also charged and this too is regulated. A maximum amount of R1,050 can be charged and generally starts at R165 plus 10% of the total loan amount starting from R1,000.
In South Africa, the general way of repaying a short-term loan is via EFT. When you apply for financing you’re required to supply the lender with your banking details. The agreed-upon monthly instalments are then deducted on the chosen date each month until your loan is paid off.
Compared to longer-term finance options such as a personal loan, any form of short-term finance is considered more expensive. Because the loan is repaid over a shorter period, the interest rate is higher than usual. Typically you can expect to pay the current repo rate plus 21% which includes all costs and fees.
With short-term finance gaining popularity over the past years, it’s good to know who the top 5 lenders are and what they can offer you.
The usual information like your ID number, proof of income, banking details, and cellphone number are required for the easy online application.
Many lenders have gone above and beyond to simplify the application process. You can apply online and most applications take only a few minutes to complete. With a few minor differences in the process, you could generally expect:
Every application for credit that’s completed and submitted will reflect on your credit record. Submitting an application for credit usually drops your credit rating by a few points. Your credit score is a rating between 300 and 850.
A good credit rating ranges between 670 and 739. Credit will most likely be approved and you’ll enjoy a decent interest rate. A credit score of 740 and higher is considered very good. Your credit applications will be approved and you’ll enjoy lower-than-usual interest rates.
There are many things you could do to ensure that you maintain a healthy credit rating. A good credit record makes obtaining credit easier and affords you better interest rates.
If you’re in need of a short-term loan but your credit record is not favourable, there’s no need to stress. Having bad credit does not necessarily mean you won’t qualify. There are many loan companies in South Africa that offer bad credit loans. These loans generally carry an increased interest amount.
To find out if a lender is above board there’s a simple check you could do to verify the lender’s information. You can log on to the National Credit Regulator’s website and enter the lender’s name and registration number.
Continue by clicking on the search button. If the records on the NCR website match the information on the lender’s website, you can rest assured that they’re a registered credit provider.
Another method of verifying a lender is by searching the internet and looking for reviews from customers that used the lender’s services in the past. This is often a good indication of what you can expect from a company.