How to get a loan online in South Africa

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Times have changed. Before, you would need to go into a bank with all your paperwork to get a loan in South Africa. Going into a bank was time-consuming, but now the process of getting an online loan in South Africa is quick and easy, with instant cash disbursement. 

The benefits of online loans in South Africa include:

  • Instant approval: Approvals are quick, and you'll get to see your repayment terms and how much you qualify for instantly.
  • Better interest rate: Some banks give you lower interest rates if you apply for a personal loan online.
  • Convenience: Applying online for a loan in South Africa has never been more convenient! You no longer have to stand in long queues outside a bank to make an application. Instead, you can sit in the comfort of your home and apply for a loan amount of your choice online, saving you both time and money.
  • Fully automated: Credit decisions are instant, making your application process streamlined. 

How to get an online loan

Online loans are convenient and very simple, as you only need an internet connection, your cellphone, or a computer to apply for a loan amount that suits your needs. 

You can apply for an online loan with the following methods:

  • Apply through the lender's mobile app
  • Apply through the lenders' website
  • Apply via cellphone banking by dialling a shortcode with your phone

Lenders who are not banks, or are not your current banking institution, will request you to submit documentation before the loan is finalised. These documents are discussed further in this guide. 

Be sure to keep these documents close by when applying for an online loan in South Africa if you’re not already a customer of the lending institution.

Types of online loans you can get in South Africa

If you’re South African, you have options to choose from when you want to apply for a loan online. When the time comes for you to apply for a loan online, do your research to make an informed decision about which loan is best for you.

The following are a few of the types of online loans in South Africa:


An overdraft facility gives you financial flexibility by providing immediate access to additional cash when you need them most. You can access this type of loan 24/7, as it’s linked to your bank account. You can increase the limit at any time from the banking app or via internet banking. 

Interest gets paid on the amount you use from your facility during that month. You don’t have to repay the loaned amount monthly, as you settle the total amount as soon as your salary is paid into your account. You will then have access to the overdraft facility again.

The interest rate is personalised, and there are monthly fees payable to overdrafts over a certain amount, depending on the bank.

Personal loan

When you apply for a personal loan, you are likely to need money for an emergency or pay for a much-needed vacation. Personal loans can be used for almost everything!

The lender sets the loan's terms, what the interest rate will be, how much you can qualify for, the loan period, and how much your monthly repayment will be. This information gets based on your personal details and what your needs are.

Revolving loan

With a revolving loan, you can access money whenever you need it, and you don't have to reapply for credit. The funds will be deposited immediately into your bank account when you apply for a revolving loan, and you can access them anytime you need them. When you pay off your loan amount, there are typically no penalties. You can also change the amount of your revolving loan by increasing or decreasing it.

Home loan

If you're buying or building your first home or any additional property, a home loan can help you get the funds you need. Your gross monthly income and expenses determine the amount you can borrow.

Term loan

A term loan is a personal loan with a set monthly repayment amount and a term you're comfortable with. A term loan can be paid back over 12 to 72 months, with the choice being in your hands.

Vehicle financing for used and new cars

Not everyone can afford to buy a new or used car. This is where vehicle financing is the best alternative to purchasing one cash. The term of vehicle financing ranges between 12 months and five years and can often extend for longer. 

Most lenders can finance a used car up to 20 years old, but they usually set a restriction on how much they will lend you. A deposit is usually not required for a used car loan. The loan will have a term of 6 to 72 months, and your monthly payment will be deducted from your account every month.

Pension-backed housing loan

An alternative home loan secured by your retirement funds rather than a bond is a pension-backed home loan. Typically, your company will allow you to pay in monthly instalments from your weekly salary. The maximum loan term is 30 years, or until you reach retirement age.

Student loan

You should never let a lack of finances prevent you from achieving your goals! A student loan will cover all of your educational costs, assuring you that you will achieve your academic objectives.

Business loan 

A business loan can be applied for by bank business account holders who want to raise funds to invest in their business for growth or expansion, purchase assets or new business opportunities, or finance other business-related expenses over the medium term.

The loan term is usually flexible, ranging between three months and five years. Most banks won’t require any collateral for loans up to a certain amount. The loan capital can be amortised, with the interest rate being less over time. 

What documents are required to get an online loan in South Africa

When applying for an online loan, you may need to submit documents to the lender. These documents align with the Financial Intelligence Centre Act (FICA) and are documents used to identify you.

Documents required for online loans include:

  • South African ID document
  • Proof of your residence, such as a utility bill, rental agreement, or an affidavit from the person you’re renting from
  • Proof of income, such as your payslip or three months bank statements reflecting your salary deposits
  • Proof of your bank details, such as your bank statement or a letter from your bank
  • Some lenders require you to be contactable on a landline

It’s important to research beforehand to ensure you have all the necessary documentation ready. Not having all the relevant documentation can delay the approval process.

All loans are subject to final credit approval and the lender’s terms and conditions.

Which lenders provide online loans in South Africa

Companies that provide financial services to individuals are referred to as credit providers. Most credit providers used to be banks. However, various businesses offer similar services. Direct lenders are an excellent example, but you need to ensure they are trustworthy and not out to scam you.  

Direct loan providers provide money to individuals without the need for a middleman. This will benefit you because there will be no additional fees, and the process will be simple. You know who will lend you the money, under what conditions, and who you should call if something goes wrong. 

If you want to know if a financial services provider is legitimate, look to see if it's registered with the National Credit Regulator (NCR). If it is, they will be classified as an authorised financial services provider and will comply with the criteria and rules of the National Credit Act.

Another viable option is to use MyLoan. MyLoan does its due diligence and only partners with trustworthy lenders. In addition, you save a lot of time searching for the best loan offer for you.

What is the best place to get online loan offers in South Africa?

The best place to find online loans is However, if you have time and like to do things at a slower pace, you can do a quick search on the internet to find lenders registered by the NCR that are authorised financial services providers.  

Alternatively, you can get an online loan through your local bank where you currently bank with. Your personal banking institution will already have all your details, making the online loan process quick and convenient.

How much do you need?

Get a Loan up to  R350,000

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.