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Quick short-term loans
How to get funds fast and what to consider before you apply.
If you’re in need of money, you may want to consider a short-term loan. You can apply for a quick short-term loan, also known as a payday loan, even if you have bad credit, and you can use your loan for whatever you need. Our guide will help you determine if this is a good option for you.
Compare payday loan options in South Africa
How do quick short-term loans work?
How fast you can receive your money depends on whether you apply online or in-store. Online applicants will find filling out an application easy to do from the comfort of their own home or anywhere with an Internet connection, but they will generally have to wait at least a day for approved funds to be transferred to their bank account.
In-store applicants will have to bring all the required documentation with them, but lenders are able to disperse funds shortly after approval. The maximum amount you can apply for varies from lender to lender and may also depend on your province’s payday loan regulations.
Quick payday loans are known for having high costs, so keep this in mind when applying. A late or missed payment could damage your credit and end up costing you a lot of money in the form of extra charges.
What features do quick short-term loans offer?
When you’re comparing loans, here are some features you should look out for.
- Multiple options for borrowing money. If payday loans are legal in your province, you’ll have numerous options to choose from. Bear in mind that not all short-term loan providers are equally quick in processing applications and disbursing funds.
- Competitive fees. If you get a payday loan, you must pay back what you owe quickly. If you don’t, you’ll be hit with further fees. Therefore when you’re comparing payday loans it’s a good idea to shop around for lower fees.
- Quick processing of your loan. Some short-term lenders use the latest in technology to verify your credentials online and give you an answer within minutes.
What to consider before applying
Here are some things to look for:
- Fees and charges. Make sure you check your loan contract before accepting as there may be extra fees and charges you have missed. Examples often include set-up fees and monthly fees. Once you accept, you’ll be liable to pay all associated costs with your loan. Be aware of any penalty charges if you are late with, or miss, a planned repayment.
- Length of your loan. This will vary from lender to lender. Ensure the loan you apply for conforms with the laws of your state and the needs of your budget. Longer loans accrue more interest, but shorter loans have higher payments.
- How long until you get your cash. You’ll generally get your cash within in the hour if applying in-person. Compare how long each lender can get you the money before applying.
- Interest rates. If you don’t need a loan immediately, be sure to compare interest rates between lenders. These vary, and it can mean spending hundreds of extra dollars if you don’t choose the plan that’s right for you.
Always review a loan’s terms and conditions before accepting the contract so you know what additional fees and charges you should expect.
Frequently asked questions
What do I need to be approved?
There is no guarantee you’ll be approved, but short-term lenders will typically want to verify your income, identity and bank account details during the application process.
How much time does it take to apply for a short-term loan online?
You can usually complete an online short-term loan application in around 15 minutes as long as you have all the required information on hand.
What eligibility criteria do I have to meet?
You should meet the minimum age requirement, which is typically at least 18 years old. You should also be a permanent resident of South Africa and have a steady source of income. Some lenders have additional criteria, so be sure to compare your qualifications before you apply.
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