Representative example: Myloan is an online loan comparison tool and not a credit provider. We only work with NCR-registered credit providers in South Africa. Our comparison service to consumers is free of charge. Estimated repayments on a loan of R30 000 over 36 months at a maximum annual interest rate of 28% would be R1 360 per month including an initiation fee and monthly service fees. Interest rates charged by credit providers may, however, start as low as 11%. Repayment terms can range from 6 to 72 months.
What is a one month loan?
A one month loan is money you borrow until your next payday, so you usually have to pay it back within 30 days. In other words, a one month loan acts like a salary advance and can also be called a payday loan.
This is something most people need from time to time. Even if you are careful with your finances, sometimes you find yourself needing extra money, and you can’t wait until month-end.
Common reasons for taking out a one month loan include paying for car repairs, medical costs, and living expenses like rent, transport, and groceries.
If you need the money for other personal needs, it’s up to you how you use the money.
Features of a one month loan
Here are the key details you need to know when taking out a one month loan:
Loan amount
The loan amount is usually limited since you are only borrowing to meet short term needs.
Generally, one month loans range from R100 to R4000. However, the loan amount you qualify for varies from lender to lender and depends on your financial situation.
Loan Term
As the name suggests, a one month loan only lasts up to 30 days or until your next payday.
Interest
Interest will be charged on the amount you borrow. For instance, if you owe R2000, you’ll have to pay back this R2000 plus interest.
The higher the interest rate, the more you will owe. So, when comparing loan offers, the cheapest loan is usually one with the lowest rate.
Fees and charges
Besides the interest, a one month loan also comes with additional fees and charges, such as administration and possible late payment fees.
It’s also important to find out what the fees will be so you can budget for your loan.
Repayment amount
Instead of paying the loan in instalments, a one month loan is usually paid back in one lump sum. The money is typically deducted from your bank account once your pay date arrives.
Advantages of a one month loan
- No need to provide security
- You can apply for a one month loan online, in the comfort of your home
- The application is quick, and you usually get the money in a short time
- You can use the money for any legit purpose
Disadvantages of a one month loan
- You have to repay the loan quickly
- Only suitable for an emergency or short term needs
- A one month loan may have a higher interest rate than a traditional personal loan
How to apply for a one month loan
Simply fill in the application form provided by MyLoan.co.za. After you submit your application, we forward it to our online partner lenders, who will then list their offers.
Compare these offers and choose the best financial services for your needs. Once your application is approved, the money gets deposited in your bank account.
What you will need
South African lenders have the following general requirements:
- Be at least 18 years of age
- Have a steady and reliable income
- Provide proof of income, such as payslips and bank statements
- Have a working bank account
- Have a valid South African ID
However, keep in mind that these requirements depend on the lender.
Are there any alternatives to a 1 month loan?
If you are wondering whether there are other short term options, such as a three month loan or a six month loan, then the answer is yes.
Our lender partners provide financial services suitable for a wide range of personal needs.
Make sure you provide the correct loan details in our application form, and we will put you in touch with the right online lender.