Mpowa Finance - Lender ReviewPublished: 10/09-2021 Category: Articles
Mpowa Finance promises up to R5000 in your account by 5 PM. This lender provides fast, convenient online loans, but check out the extra details you need to know before you jump at the offer.
Mpowa Finance: Quick Overview
- Loan amount: R500 - R2500 (can increase up to R5000)
- Loan term: Full payment due on next payday
- Interest rate: 0.17% per day, 5% per month, 60% per year
- Fee:. Initiation fee and service fee
Mpowa Finance: Full Review
Mpowa Finance is an online lender and a great alternative to the big banks for borrowers who need short-term loans. According to Mpowa Finance, the maximum loan term they offer is 6 months, and their loans do not go above R8,000.
However, most of their customers get a maximum of R2500 due on the next pay date. Clients can only increase their loan amount if they successfully repay three loans. Keep in mind that Mpowa Finance charges an initiation fee of 16.5% on the first R1000, then 10% on each amount above R1000, plus VAT.
Additional charges include a monthly service fee of R60, plus VAT. Interest is 5% per month, which drops to 3% for additional loans taken in the same year.
Pros of Mpowa
- Fast turnaround time: It’s possible to get your cash on the same day if you apply, by 5 PM.
- Option to increase your loan amount: If you take out three loans and pay them back successfully, Mpowa allows you to borrow more money, typically up to R5000.
- Convenient online application: Mpowa doesn’t do bank queues, and you don’t have to print any paperwork. You sign your loan contract online, and the cash is delivered wherever you are.
- Transparent fees structure: Every loan offer you get shows the fees clearly on the quotation page. This allows you to make an informed decision based on your budget and what you can afford.
Cons of Mpowa
- Not available to the newly employed: You can only get loan approval, provided you have been at your current place of employment for at least three months.
- Limited options: Mpowa Finance is a short-term loan lender. As such, you will be restricted when it comes to the loan amount and term. Generally, personal loan lenders in South Africa offer up to R250 000 over 5 years, so you might want to consider these options if you are planning to make a larger purchase or payment.
How does Mpowa Finance work?
The application process for a Mpowa Finance personal loan is a follows:
- Apply for a loan: If you’re a first-time customer, you will have to create an account before completing the online application. If you’re an existing customer who has repaid the previous loan, simply log in and reapply. Same-day loans must be completed by 3 PM.
- Sign and upload documents: Mpowa Finance will email you a loan contract, which you have to sign. Then you send it back together with your three latest payslips or bank statements.
- Cash transfer: You will get a call to obtain a voice recording of your loan contract details. After that, the cash will show up in your bank account at 5 PM.
- Repayment: You have to repay the total amount in one instalment on your next payday through a debit order that you sign for. If you don’t fulfil this agreement, your credit score may be severely affected.
What type of loans does Mpowa Finance offer?
Mpowa offers short term loans that typically come with the following features:
- Payday loans: You can borrow from Mpowa for one month only. So, these loans are designed as a quick solution to short-term financial problems. Payday loans have a higher interest rate than most personal loans, so it’s best to take one out when faced with an emergency only. If it can wait, a personal loan might be a better option, though the processing time may be slower.
- Online application: Mpowa Finance is a fintech lender that uses technology to deliver cash loans to qualifying South Africans who can apply using any smart device connected to the internet.
- Qualification requirements: Any South African above the age of 18 can apply as long as they have been at their place of employment for at least three months and can afford the loan.
- Uses for loan: Technically, it’s up to you how you use the money, but keep in mind payday loans are meant for pressing times. The cash is only supposed to tide you over until your next payday.
Is Mpowa Finance a good and safe option?
Mpowa Finance is a good and safe option based on the following factors:
- The lender is registered with the National Credit Regulator, and their interest charges and fees adhere to the terms stipulated by the National Credit Act 34 of 2005.
- Mpowa is a responsible lender that looks at various factors, such as your income, length of employment, and credit history, before deciding how much to offer you. You also have the option to decline a large loan amount in favour of a smaller amount.
- Mpowa Finance also uses DebiCheck, which means they will not debit money from your account unless you authorise them to do so.
- Mpowa Finance uses a safe and secure online platform and will only use your personal information within the constraints of the law.
Who is Mpowa Finance best for?
Mpowa Finance is best for borrowers who:
- Need fast, instant, or same day loans
- Have been at their place of employment for at least three months
- Can pay back the money on their next payday
How do I apply for a Mpowa Finance personal loan?
Before deciding if Mpowa Finance is the right lender for you, you need to do one last essential thing: to compare loans. That’s because South Africa has many lenders that offer various loan options, and you will never know if you’re getting a good deal unless you shop around first.
We know that searching for the right loan can be such a hassle, and that’s why a service like MyLoan.co.za exists. We help you compare loans, so you can still get your cash as quickly and efficiently as possible. The only thing we require from you is that you fill in our simple and straightforward application form.
Once you submit it, we will let all our partner lenders know about your interest in taking out a loan. They will consider your details, and if you qualify, you will receive loan offers, which you then compare before accepting the best option for you. Next thing you know, you get your cash!
So, whether you choose to get a loan from Mpowa Finance or a different South African lender, MyLoan.co.za is here to ensure you get the best available deal. To get started, complete our application form, and we will put you in touch with multiple lenders, all under one roof.
How do I contact Mpowa Finance?
- Call 0861228228
- Fax 08668937804
- Email firstname.lastname@example.org
- Visit 191 Jan Smuts Avenue, Rosebank, Johannesburg, 2196
- Post your mail to Postnet Suite 462, Private Bag X9, Benmore, 2010