Everyone, some time or other is searching for a short-term to tide over the temporary discomfort of a vehicle or appliance repair, medical bills or funds required for a vacation. A short-term loan is a great opportunity for you to meet your emergencies and repay them without much hassle through your paycheck. Sometimes these loans also get categorized into payday loans which thousands of financiers are willing to give, though each of them may have a different criteria for parting with the loan. However, you must examine the various options in front of you with extreme care before you decide on your final lender. You have an unlimited choice of lenders for short-term loans before you and must stand up to the dilemma of finding the best one to suit your budget and your lifestyle.
Financiers of most short-term loan South Africa, have set the following yardsticks to qualify an online loan.
- You need South African Citizenship
- You must have completed 18 years of age
- You must hold a valid bank account
- You must have a regular job
- You need a valid email ID
Most short-term loans have a 40-day repayment cycle which means you can conveniently pay when your payday arrives. The lenders discuss with you and advise you on the quantum of loan that you can repay comfortably without stress or hassles. They take special care to advise you on your affordability of payback.
Interestingly, Wonga, a short-term loan company registered in Britain has chosen South Africa as its first international destination outside Britain to expand their business. South African founders Jonty Hurwits and Errol Damelin, who founded this company in 2007, have taken it high up on the popularity ladder as a short-term exclusive online lender of unsecured loans. In its Initial offering solely to their brother South Africans, the company has offered their customers a loan of R100 to R2000 for one-month period until payday.
Wonga uses the online risk assessment technology that assimilates the amount that needs payback, depending on the loan amount and the period of the loan. New customers always get smaller loans valid for not more than 30 days.
Get Bucks is another short-term loans dispenser who works only on the online application system. You can save time and energy by not having to submit paper work or stand in long queues. The best part is that they can approve and grant the loans within an hour.
A general review about the short-term loans in South Africa
While the advantages are that you can borrow up to R4000, depending on the lender and payback in 30 to 45 days and loan approval and sanction may take just an hour or so, there is also a downside to this system. Some of them are the initiation charge for each loan, the 5% interest rate that adds up to more than 60% per annum and the daily admin rate and collection fee that they include in the repayment.