Representative example: Estimated repayments of a loan of r30,000 over 36 months at a maximum interest rate of 29.25% apr would be r1,381 per month including fees. Repayment terms can range from 2 - 72 months. Myloan is an online loan broker and not a lender. Our service is free, and we only work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 19.25% apr, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant's credit score and other factors at the lender's discretion.
The maximum annual interest rate including fees is 27.5%. Repayment terms can range from 1 - 72 months.
MyLoan is an online loan broker and not a lender. Our service is free and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants’ credit score and other factors at the lenders’ discretion.
Sometimes individuals and businesses find themselves facing unforeseen financial emergencies. Therefore emergency loans have emerged as a vital lifeline to address this pressing need, offering quick and accessible financial assistance.
What is an Emergency Loan?
Emergency loans, also known as crisis loans or quick loans, are designed to provide swift financial relief in urgent situations. These loans are typically disbursed quickly, enabling borrowers to address unforeseen expenses promptly. They offer an alternative to conventional bank loans, often involving extensive paperwork and time-consuming approval processes. While various financial institutions quote emergency loans, it is essential to carefully evaluate the terms and interest rates before proceeding.
A reliable option for emergency loans includes Wonga, an online lending platform specialising in emergency cash loans. They quote quick approval times and flexible repayment terms, allowing borrowers to access funds promptly. Wonga only provides short term personal loans that can be used for almost everything, like an emergency. New borrowers can get up to R4.000 payable over three months while returning customers get up to R8.000 payable over six months.
How Much Would a R3.000 Emergency Loan Cost Monthly?
These are two representative examples:
A R3.000 loan at an interest rate of 5% per month plus a once-off initiation fee of R419.75 (added to the loan amount in this example) and a monthly admin fee of R69.00 over 1 month would have a total cost of R659.74.
A R3.000 loan at an interest rate of 5% per month plus a once-off initiation fee of R419.75 (added to the loan amount in this example) and a monthly admin fee of R69.00 over 3 months would have a total cost of R974.28.
Benefits of Emergency Loans
- Rapid access to funds
- Financial assistance for unforeseen expenses
- Accessibility for diverse credit profiles
- Streamlined application process
- Flexibility in loan terms
- Preventing reliance on predatory lenders
- Promoting financial stability
- Peace of mind and reduced stress
The Difference between an Emergency loan and Other Unsecured Loans
The primary difference between an emergency loan and other unsecured loans is their purpose, eligibility criteria, and repayment terms.
Emergency loans are specifically designed to provide quick access to funds during unexpected crises, addressing immediate financial needs such as medical bills or car repairs. They often have more relaxed eligibility requirements, accommodating individuals with lower credit scores. In contrast, other unsecured loans, such as personal loans, have a broader range of purposes and typically require a higher credit score and stable income for approval. They quote extended repayment periods, allowing borrowers to transfer payments over time. Individuals must consider their specific circumstances and the urgency of their financial needs when choosing between an emergency loan and other unsecured loans.
Secured vs Unsecured Loans
Secured loans are backed by collateral, such as real estate or a vehicle, providing lenders with an asset they can claim if the borrower defaults. Unsecured loans, on the contrary, do not require collateral but rely on the borrower’s creditworthiness and income. While secured loans generally offer lower interest rates and higher borrowing limits, unsecured loans are accessible to borrowers without assets. They may have stricter eligibility requirements and relatively higher interest rates due to the increased risk for lenders.
The Eligibility Criteria for an Emergency Loan
To be eligible for an unsecured loan, you generally need to meet the following criteria:
Age above 18 years
Valid South African ID or Social Security number
Proof of residence not older than 3 months
Up to 3 month’s recent bank statement
1 months payslip
It is important to research beforehand to ensure you have all the necessary documentation ready, which will help applicants avoid unnecessary delays or rejections. All loans are subject to final credit approval and the lender’s terms and conditions.
The Online Application Process With MyLoan
Many registered credit providers quote emergency loans in South Africa. MyLoan partners with only National Credit Regulator NCR-certified lenders and has done the work on your behalf. We have integrated and automated the process of receiving personalised loan quotes from lenders. Get an emergency loan today? You only need to complete the online loan application and select the best loan.
Fill in the Loan Application
Fill in the loan application. The form only takes a few minutes to complete, and once you submit it, we will forward it to multiple lenders most inclined to lend to you.
See Loan Quotes
Emergency loan providers that see your application and are willing to provide the cash you need will instantly provide you with a preliminary loan quote. You will see the details of your loan, such as how much you qualify for and your expected interest rate. After you accept a quote, the lender will contact you directly to finalise the process.
Get the Money
Once you choose and accept one of the quotes, you finalise the application by submitting additional details and required documents like proof of residence. The lender then deposits the funds in your bank account.