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.
Payday loans have become increasingly popular for quick cash to cover unexpected expenses or bridge the gap between paychecks. In recent years, the advent of online payday loans has further enhanced the accessibility and convenience of this short-term borrowing option. Explore the advantages of online payday loans and the features that make them a quick, easy and paperless financial tool for individuals facing urgent financial needs.
What is a Payday Loan?
A payday loan is a short-term loan designed to provide immediate cash to borrowers who need funds quickly. It is typically repaid on the borrower’s next payday or within a short period. Payday loans are known for their relatively small loan amounts, higher interest rates, and quick approval process.
The Requirements for Obtaining a Payday Loan Online
To be eligible for an online payday loan in South Africa, you generally need to meet the following criteria:
Age above 18 years
Valid South African ID document or Social Security number
No recent credit remarks
Regular source of income/Employment
Active bank account
Thus lenders have fewer requirements compared to other types of loans. It is important to research beforehand to ensure you have all the necessary documentation ready. Having all the relevant documentation ensures your loan approval process is as quick as possible. But all loans are subject to final credit approval and the lender’s terms and conditions.
How to Apply for a Payday Loan Online Trough MyLoan:
Many registered credit providers quote instant payday loans in South Africa. MyLoan partners with only NCR-certified lenders and has done the work on your behalf. We have integrated and automated the process of receiving personalised payday loan quotes from lenders. To apply for a loan, you only need to complete the online loan application and select the best payday loan. Find a payday loan in Durban.
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 that are most inclined to lend to you.
See Loan Offers
Payday 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.
Frequently Asked Questions (FAQs):
Many registered credit providers quote instant payday loans in South Africa. MyLoan partners with only NCR-certified lenders and has done the work on your behalf. We have integrated and automated the process of receiving personalised payday loan quotes from lenders. To apply for a loan, you only need to complete the online loan application and select the best payday loan.
How Much Can I Borrow With a Payday Loan?
The loan amount for payday loans typically ranges from a few hundred, such as R1000, to a few thousand dollars, depending on the lender and the borrower’s income. Borrowing only the amount needed and ensuring repayment feasibility is essential to avoid financial strain.
Can I get a Payday Loan with Bad Credit?
Payday loan lenders often consider the borrower’s income and ability to repay rather than focusing solely on credit scores. While bad credit may not disqualify an applicant, lenders may charge higher interest rates to offset the perceived risk.
How Quickly can I receive the Loan Funds?
Payday loan funds can be deposited into the borrower’s bank account within one to two business days after approval. The exact timing may vary depending on the lender’s policies and the borrower’s bank. But with the instant approval online loan, there will not be an extensive approval time delaying the process.
How Much Does a Payday Loan Cost?
In South Africa, borrowers will be charged about a 5% interest rate monthly. 5% might not be a high-interest rate in the short term, but you must also consider the service fees.
Are Payday Loans Safe?
As mentioned, MyLoan only partners with trustworthy NCR-certified lenders, and we prioritise the security and privacy of customer information. However, a payday loan is unsecured, meaning borrowers do not need to provide collateral to secure the loan. This accessibility makes them particularly attractive to individuals facing urgent financial situations or unexpected expenses.
What Happens if I Can’t Repay the Loan on Time?
If a borrower is unable to repay the loan on the agreed-upon due date, it is crucial to contact the lender immediately. Some lenders offer flexible repayment options or extensions, but it is essential to communicate and address the situation proactively to avoid additional fees or penalties.