Representative example: a R50 000 loan at an interest rate of 24.5% per annum plus a once-off initiation fee of R1 207.50 (added to the loan amount in this example) and a monthly admin fee of R69.00, over 72 months would have a total cost of R 103 155.57.
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.
When financial needs arise, loans can be a valuable resource to help you bridge the gap. South Africa quotes various loan options to its residents, from traditional bank loans to innovative online solutions like MyLoan.
Are you wondering about the convenience and accessibility of online loans? Online loans have gained prominence due to their ease of application, faster processing times, and flexible terms. You can complete your home loan application process with online lenders. The documentation required is often minimal, making it a convenient option for those who need quick financial assistance.
Types of Loans
There are many different types of loans, each serving a specific purpose - and the most popular loans are the following.
Personal loans are a versatile financial tool catering to various individual needs like travel, funding education, or consolidating debt.
A cash loan is a versatile option for those requiring immediate funds for unexpected bills, medical expenses or home repairs.
Quick loans are meant to be easily accessible for individuals who must promptly address their financial needs. Therefore, you must find a lender who quotes rapid approvals and disbursements.
Unlike traditional loans that may involve lengthy paperwork and in-person visits, online loans typically have faster approval, no paperwork and quick disbursement.
Short-term loans bridge the financial gaps without long-term commitments. These loans provide a manageable way to access funds quickly.
Sometimes, individuals and businesses face unforeseen financial emergencies, so emergency loans have emerged as a vital lifeline to address this pressing need, providing quick and accessible financial assistance.
The Different Loan Lenders
In the realm of loan lenders, South Africa quotes a diverse array of institutions to cater to the financial needs of its residents. Traditional banks, such as Absa and Nedbank, are stalwarts in the lending landscape. These established institutions provide various loan products, from personal to home loans.
But the financial technology (fintech) revolution has given rise to a new generation of lenders that operate primarily online. These platforms leverage digital technology to expedite loan approvals and disbursements, catering to borrowers seeking swift access to funds - MyLoan partners with various online loan lenders like Wonga, Fasta and Unifi.
What is Required to Get a Loan?
To be eligible for a loan in South Africa, you generally need to meet the following criteria:
- Age above 18 years
- Valid South African ID document
- 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.
Who is MyLoan?
MyLoan is an online loan comparison platform that intends to facilitate a streamlined and transparent application process for borrowers to find suitable loan options for their needs. MyLoan specialises in personalised loan quotes and partners with thirteen trusted lenders. Therefore, filling out the online loan form corresponds to going into a physical bank, talking to thirteen lenders and filling out an application for each lender.
As a result, individuals looking for loans can make informed decisions and quickly secure the most favourable loan deals through MyLoan. It is time-saving, secure, convenient and way more flexible than a traditional bank.
The Application Process With MyLoan
Many registered credit providers quote 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. To apply for a loan, you only need to complete the online loan application and select the best loan for you.
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 who are most inclined to lend to you.
See Loan Quotes
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.
Remember to have all the required documents close by so that applying for a loan online is as smooth as possible.
What to Consider Before Applying for a Loan
It is essential to consider all of the following factors to determine whether a loan is the right choice for you.
Can You Afford to Take on this Debt?
From a pure financial stability perspective, you should be confident that you can take on this loan and pay it back within the necessary period. Alternatively, you can collect all your loans in one big loan and pay off your debts.
What is the Purpose of the Loan?
Determine the specific purpose for which you need the funds. Assess whether it’s a genuine emergency or alternative financial solutions are available.
Is the Loan Tenure Well Suited to the Expense?
The loan you choose should align with whatever you use the money for. So be sure the expense is quick before applying for the loan. It’s worth taking your time to consider these considerations before making any decision.
Therefore, take your time to decide on a reliable lender, whether to take out a loan, and continually assess your financial situation.
Frequently Asked Questions (FAQs)
Can a Foreigner Get a Loan in South Africa?
Foreigners in South Africa can apply for loans, but specific requirements must be met. These requirements may include proof of legal residence, a valid work permit, and a steady source of income.
How Do I Qualify For an R250.000 Loan?
Getting an R250.000 personal loan can be challenging since most South African lenders often prefer excellent borrowers. However, the typical requirements to be eligible for a loan over R100.000 are the following. You need to be:
- Over 18 years of age
- A residence of South Africa
- Be employed, and most lenders require you to earn a minimum income
You will also need:
- A copy of your ID document
- Up to 3 months payslips
- Utility bills
How to Improve Your Chances of Getting a R250.000 Loan
Several things can be done to increase your chances of getting a higher personal loan, such as:
- Improve your credit rating
- Use collateral if available
- Filing a joint application with your spouse
- Pay off existing debt (you can consider consolidating your loans)
- Give all the required documents and financial information
Is it Possible to Get a Loan With Bad Credit?
Yes, getting a loan with bad credit in South Africa is possible, although it might be more challenging. Lenders quoting bad credit loans understand that financial difficulties can affect anyone. These loans typically come with higher interest rates, so it’s essential to carefully consider the terms before committing.
How Much Would a R15.000 Loan Cost Monthly?
These are two representative examples:
An R15000 loan at an interest rate of 5% per month plus a once-off initiation fee of R1207.50 (added to the loan amount in this example) and a monthly admin fee of R69.00 over three months would have a total cost of R3.061.60.
An R15000 loan at an interest rate of 5% per month plus a once-off initiation fee of R1207.50 (added to the loan amount in this example) and a monthly admin fee of R69.00 over six months would have a total cost of R4.572.96.