The main difference between payday loans and other types of loans is that they are short term (usually lasting only a few weeks or months) and the amount of money involved is far smaller. The other difference is that they are not intended for large purchases such as a house or car.
These loans are taken when you need little amount of emergency money, or you need extra cash to help you get through until your next payday.
How do payday loans work in South Africa?
A payday loan ranges from as little as R100 all the way up to R8, 000, or more.
The repayment period is usually within 30-45 days, but the loan can be spread out for up to six months (Six months is usually what the repayment period is extended to if you default.)
What you should also know is that there will be a service and initiation fee. You will have to pay this on top of the money you have been loaned. The service fee is calculated as a percentage of the loan, so the bigger the loan, the higher the fee. This fee needs to be paid for every month that the loan is outstanding, in addition to your interest repayments.
When applying for a payday loan, you will have to enter into a direct debit agreement with the lender. This way when your salary is deposited, the lender can debit your account and get their money back.
Just a warning though.
Payday loans are types of loans that have a very bad reputation, this is because they are one of the most expensive types of loans. They have an interest of as high as 5%, 60% and some up to 1000%, this is the reason why most people sometimes struggle to repay these loans.
Why are easy payday loans so popular?
Despite the risks involved, these types of loans are extremely popular among the public.
There are many reasons for this.
The biggest reason is that they are relatively easy to apply and qualify for.
One more thing, you do not have to put up any type of collateral like your house, or car in order to receive a payday loan (This also means you will not lose your house or car if you fail to repay the loan.)
Who would want an instant payday loan with no paperwork in South Africa?
These types of loans are usually taken by people who need to get money quickly and easily. These are the types of people who are unable or don’t want the hassle of getting a loan through a bank.
It includes people who need money in case of emergency or unforeseen circumstances, those who require extra money to get it through the rest of the month, or people who do not have credit cards.
These loans are taken mostly by working class people or by people from lower socioeconomic class.
There are almost no requirements when applying for a payday loan.
As long as you are employed and getting paid at the end of the month, you will probably qualify. The main and only requirement is that you must have a job, an upcoming salary payment. You only need to provide your payslips and bank statements to the lender.
Also, you should know that it’s not necessary to have good credit to receive a payday loan. It’s possible to qualify even if you have bad credit.
The first step in applying for a payday loan is to find and choose a loan provider.
There are dozens of companies who provide payday loans. They vary greatly in what they offer, so it’s important to choose wisely (See the end of this article for recommendations.)
When applying you will need:
How to get the largest online payday loan with no credit check and instant approval in South Africa.
Payday loans are usually loans involving small amounts of money, but there are ways to get large amounts of money. To get large amounts of loan money, you will need to have a good track record with the lender. The more you apply for loans and pay them back in time, the more money you will eventually be able to get.
Once you have applied, then you will have to wait for the loan to be processed. In most cases, this does not take long. Payday loans are processed quickly because there are minimal credit checks, and you do not have to put up collateral for the loan.
The company will receive your application and look at your credit rating. Even if you have bad credit, you are likely to qualify. So, don’t worry if you have a bad credit rating when you are applying for a payday loan.
And don’t worry about your information. It’s guaranteed to be secure with the payday loan company.
Also these loans are regulated by the national credit act and the national credit regulator, who role is to protect you as a consumer.
One thing you should watch out when you apply for a loan online.
There are a lot of shady operators out there and many online payday loan scams. This is why it’s vital to research where you are getting the loan from and ensure they are reliable lenders.
The most important thing while getting an urgent payday loan with no credit check in South Africa.
The most important thing while taking a payday loan is that you are able to pay it back on time.
Remember, these loans have extremely high rates of interest (Sometimes as much as 1000%) and those people who are unable to pay back the loan on time find themselves owing a large amount of money.
One more thing to note, don’t ever make the mistake of taking out a second or third loan to pay for the first one.
Payday loans have an extremely high rate of interest and can be very risky. It’s because of this reason that these loans have a bad reputation, and are often seen as exploitative.
If you are unable to pay back the money you can find yourself out of your depth, and owe more money than you can afford to pay back. This, in turn, can lead to you having your entire salary taken away month after month, which will cause serious problems for you.
Not only that, if you can’t make payments of the loan on time, the loan will grow bigger and bigger because of compound interest. This will result in you going deeper and deeper into debt. You also run the risk of having your credit rating affected and you could even be blacklisted.
This means you could end up in trouble with debt collectors, or even being sued by the payday loan company.
For all of these reasons, it’s vital that you’re able to repay your payday loan before taking another one.
Despite this, these loans are not as bad as they are portrayed out to be.
As long as you are able to pay the loan back on time, there will be very little risk for you.
Yes, the interest rates are high, but this is one of the fastest and easiest ways to get money.
What you have to realize is that because you are not providing collateral for the loan, it is riskier for the lender. And because of this, they have to charge you a far higher rate of interest than with other types of loans.
Another reason the interest rates are so high is that they have a short repayment period. This means the lender isn’t able to earn as much interest on the loan.
What to do next if you want a quick online payday loan in South Africa.
Payday loans are easy and convenient to take.
Most of the time you will be able to apply online 24/7, and as long as you have a job, you will qualify.
That being said, they can be dangerous if you cannot make the repayments on time.
And because of this, it’s always best for you to consider all your options. Seek out other alternatives and think through carefully before you take a payday loan.
Before you get the loan, consider trying to increase your income by getting an advance from your employer, finding a part-time job, using your credit card or lending money from friends.
If you think you’re responsible enough and have what it takes to qualify for a payday loan, where should you go?
After all, there are dozens of leading companies in South Africa who offer these types of loans.
Some of the most popular payday loan lenders are Little Loans, Wonga, SA Cash Loans and MBC Finance.
You can also try your bank.
Most banks have started offering payday loans, which are easier to apply for than their usual loans. One disadvantage is that the bank takes the money directly from your bank account.
The plus is that it takes less time to negotiate with the representatives of the bank.
Due to the fact that there are so many companies offering payday loans, it’s in your best interest to look around and see what’s on the offer and take the best one.
These companies can vary wildly in terms of how much they are willing to loan you, their service fees and repayments terms. Some services are better than others, which is why it advisable to shop around and check out the various companies.
Where to get payday loans online.
If you’re uncertain of which company to choose, please visit our payday loan review site.
On our site, you’ll find comparison reviews of companies that provide loans and payday loan services. This way, you’ll be able to find the best loan provider for you and can quickly apply for it online.
These companies are reputable, open 24/7 and phone calls are not necessary.
Visit now to check what’s available