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.
How does a payday loan work in Durban?
Whether you are in Durban or anywhere in South Africa, a payday loan pretty much works the same way. Traditionally, payday loans involved borrowing a small amount of money, which you immediately paid back in full on your next payday.
However, today, payday lenders in South Africa are more flexible, so it’s possible to pay back the loan over many months. In most cases, the money is deducted from your account each time your salary comes in until you have repaid the entire debt.
Common features of a payday loan
If you want a better understanding of how payday loans, here’s a quick breakdown for you:
- Loan amount. Payday loans usually come with small loan amounts, ranging from R500 to R4000, sometimes more. It all depends on your income and the lender’s borrowing limits.
- Loan term. As mentioned, a payday loan is a type of short term loan that you need to pay back either on your next payday or within a few months.
- Interest rate. The interest rate for payday loans is typically about 5% per month. Your interest rate can be fixed or variable. A fixed rate stays the same until the loan is paid off, while a variable rate can change. Fixed rates provide more peace of mind since you know exactly how much you have to pay. On the other hand, a variable rate can save you money if the interest rate goes down.
- Fees and charges. You will also be required to pay fees, such as an initiation fee and a monthly service fee.
- Purpose. Payday loans are usually useful when faced with an emergency. If you have no savings and payday is too far away, a payday loan will help you cover the financial gaps. In South Africa, people use payday loans to cover rent, transport, a doctor’s bill, repairs, and other essential expenses. The good news is once the money is in your bank account, you are the one who decides the best way to spend it.
Can you get a payday loan with no credit check in Durban?
If you are worried that your bad credit history will stop you from getting approved, the good news is you can apply for a payday loan with no credit check. But you will have to provide your payslips and bank statements to prove you can afford the loan.
Additionally, there may be a limit on how much you can borrow. Even though the lender doesn’t check or consider your credit history when you apply, the details of the loan will still be listed on your credit report.
How to choose the best loan for your needs
When comparing payday loans, make sure the loan is flexible enough to suit your needs. Overall, choosing a loan with flexible terms and conditions ensures the borrowing process is simple and straightforward.
For instance, are you able to borrow the amount you need? In addition, check that you have enough time to pay back the loan and that the repayment amount is affordable, otherwise your budget can suffer.
In addition, it’s best to review the total cost of your loan, including fees and charges to avoid any nasty surprises down the line.
Benefits of getting a payday loan in Durban
Payday loans are usually associated with the following benefits:
Quick online application
With MyLoan.co.za, you can apply for fast payday loans online in a few minutes. Once our partner lenders review your application, they will respond as soon as possible. However, it’s important to note that South African lenders do not guarantee approval.
That means payday loan applications are approved on a case-by-case basis. Affordability is one of the biggest factors lenders use when deciding whether to approve your loan.
The reason why payday loans are so popular in South Africa is they have a fast turnaround time. If you need money urgently, some lenders can provide you with same day payday loans. Usually, this is only possible if you apply on a business day before a certain time.
In addition, some lenders provide instant payday loans if you are a returning customer. Since they already have your information, all you have to do is log in to your account, and provide the details of the loan you want. If approved, the money will be sent to your bank account in just minutes.
Get out of debt quickly
With a payday loan, you don’t have to be stuck in debt for a long time. Most people find they have more peace of mind if they can pay off their debt quickly. This is possible since payday loans have a shorter repayment period. In addition, paying off your loan sooner means you save on interest.
Payday loans are unsecured, meaning you don’t need to offer your car or another asset as security for the loan. Another thing is some lenders offer no credit check payday loans, so you can still apply even if your credit history isn’t perfect.
How to apply for a payday loan in Durban
Submitting your loan application through MyLoan.co.za is as easy as 1-2-3:
- Fill in the loan application form on this page
- Receive offers from our partner lenders
- Choose the offer you want and get your funds
General requirements for a payday loan in Durban
- Phone number
- Email address
- Bank account details
- South African ID
- Bank statements
- Proof of residence
- Be at least 18 years
Why choose MyLoan.co.za
MyLoan.co.za is a popular choice for many Durban residents. Our service is extremely simple to use and free, and all our partner lenders are fully licensed and offer authorized financial services.
In a nutshell, here’s why we add more value to your life when it comes to getting the perfect payday loan:
- Easy-to-fill application form
- Secure online platform
- Apply online anytime wherever you are in Durban
- Apply for free - no obligation whatsoever
- Access to multiple lenders, that offer fast payday loans
- Reduce the amount of time spend searching for a loan
Payday loan Durban FAQs
Can I apply for payday loans for the blacklisted in Durban?
If you are blacklisted or have a bad credit score, you can still get a loan in Durban. The lender will not use your bad credit history against you. Instead, they will consider your income and whether you can afford to make the payment.
However, keep in mind that payday loans for the blacklisted typically come with higher interest rates than average.
What happens if I can’t make a payment?
If you’re unable to make payments for your loan on time, the best thing is to get in touch with the lender as soon as possible. The lender can provide you with a different payment plan and a more affordable amount.
However, keep in mind that this can make the loan more expensive once you factor in interest and late payment fees.
Where can I get a payday loan in Durban, South Africa?
MyLoan.co.za provides access to a variety of loans through our partner lenders. Complete our application form to get your payday loan, today.
Are payday loans expensive?
In South Africa, payday loans tend to have higher interest rates than personal loans. That’s because borrowing a small loan amount for a short period is expensive since it carries more risk for the lender. Therefore, the lender will charge a higher interest rate. But keep in mind you’re also paying for the convenience of getting the money you need quickly and easily.
Still, it’s generally best to only take out a payday loan to cover an urgent expense and which you plan to pay back as soon as possible. If you need to cover other non-pressing financial needs, the good news is you can also apply for a personal loan through us.
Is a payday loan the same as a short term loan?
A payday loan is a type of short term loan. The main difference between payday loans and other short term loans is the length of the loan. Payday loans are repaid within a month or two in most instances.
On the other hand, a short term loan can have a longer repayment period, ranging from two to twelve months.
What’s the difference between a payday loan and a personal loan?
A personal loan is money you borrow over a longer term of up to five years or more. Personal loans also allow you to borrow a larger loan amount of up to R250 000. They are multi-purpose and are suitable for weddings, holidays, home renovations, and buying a car.
The biggest advantage of personal loans over payday loans is they typically have lower rates. However, applying for a personal loan can be a long process that requires some patience, so they are not ideal in an emergency.