A Short Term Loan in South Africa - Get the Best Quotes with MyLoan

Explore the key features, benefits, and considerations of short term loans, a flexible financial solution designed for immediate, temporary funding needs.
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Need a short term loan? Be smart - apply for a loan through MyLoan to get offers from many lenders. Choose the best loan option available - with no obligations or hidden costs.

Representative example: Estimated repayments of a loan of r30,000 over 36 months at a maximum interest rate of 29.25% apr would be r1,381 per month including fees. Repayment terms can range from 2 - 72 months. Myloan is an online loan broker and not a lender. Our service is free, and we only work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 19.25% apr, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant's credit score and other factors at the lender's discretion.

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 you’re in a cash crunch, and you need a quick flow of money to deal with some unplanned financial situation – you need to be able to find a loan that can smooth over that period and one that you can get out of as soon as you’re back on your feet - and that’s where short term loans come in.

Understand Short Term Loans

A short term loan is a type of borrowing that provides individuals or businesses with immediate access to funds for a relatively brief period, typically ranging from a few weeks to a few months. These loans are characterised by their quick application process, faster approval, and shorter repayment terms. Short term loans can be used for various purposes, such as covering unexpected expenses, managing seasonal fluctuations in business cash flow, or consolidating debts. However, it is essential to carefully consider the interest rates, terms, and repayment capabilities before opting for a short term loan to ensure responsible borrowing and avoid potential financial challenges.

Disadvantages and Benefits of Short Term Loans

A short term loan is a type of borrowing that provides individuals or businesses with immediate access to funds for a relatively brief period, typically ranging from a few weeks to a few months. These loans are characterised by their quick application process, faster approval, and shorter repayment terms. Short term loans can be used for various purposes, such as covering unexpected expenses, managing seasonal fluctuations in business cash flow, or consolidating debts. However, it is essential to carefully consider the interest rates, terms, and repayment capabilities before opting for a short term loan to ensure responsible borrowing and avoid potential financial challenges.

Benefits of Short Term Loans:

Quick access to funds for immediate needs
Flexibility in repayment terms and loan amounts
Suitable for borrowers with short-term funding requirements
Can help build or improve credit if repaid responsibly
Often simpler application processes compared to long-term loans

Disadvantages of Short Term Loans:

Higher interest rates compared to long-term loans
Short repayment periods may result in higher monthly installments
Potential for multiple loans leading to a debt cycle
Late payment fees and penalties for missed or delayed payments
Limited loan amounts compared to long-term loans

What Are the Interest Rates for Short Term Loans?

The interest rates for short term loans vary depending on several factors, including the borrower’s creditworthiness, loan amount, and repayment term. Generally, short term loans tend to have higher interest rates than long term loans due to the associated risks and shorter repayment periods. The interest rates for short term loans in South Africa typically range between 8% and 13%.

The Best Short Term Loans

The best short term loans vary depending on individual needs. Conduct thorough research, and compare terms, interest rates, and customer reviews to find reputable lenders that align with your financial requirements.

The Most Common Short Term Loan

The most common type of short term loan is the personal installment loan. This type of loan provides borrowers with a fixed loan amount repaid over a predetermined period through regular installments. Personal installment loans are versatile and can be used for various purposes, such as consolidating debts, covering unexpected expenses, or managing cash flow fluctuations. They offer flexibility in loan amounts and repayment periods, making them a popular choice for individuals seeking short term financial solutions.

Quick Short Term Loans

Short term loans have a quick application process, fast approval times, and short repayment terms. But the application process will be even faster if you select a short term loan online through Myloan.

What is a Quick Loan?

A quick loan refers to borrowing that provides individuals or businesses with expedited access to funds. These loans are designed to offer a streamlined application process, consolidating debts instant approval, and fast disbursement of funds, making them suitable for promptly addressing urgent financial needs or unexpected expenses. Some lenders also quote same day short term loans. Unifi is an NCR-registered credit provider that quotes stress-free, affordable and superfast loans. Unifi loans have same day approval and require no meetings, papers, or queues.

What to Consider Before Applying for a Short Term Loan

It is essential to consider all of the following factors to determine whether a short term 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 can pay it back within the necessary period. Alternatively, you can collect all your loans in one big loan and pay off your debts.

Do You Need the Money Immediately?

Is there another way to delay the payment and source the money through something other than debt? If that’s the case, you should consider it before turning to a loan.

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 short term before applying for the loan. It’s worth taking your time to think through these considerations carefully before making any decision.

Who is Eligible for a Short Term Loan in South Africa?

To be eligible for a loan in South Africa, you generally need to meet the following criteria:

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.

How to Apply for a Loan Online on MyLoan

Many registered credit providers quote instant short term 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 that are most inclined to lend to you.

See Loan Offers

The credit 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)

How Do Short Term Loans Work?

Typically, you’ll apply for a short term loan through an accredited provider, giving you immediate access to an agreed-upon sum of money. This loan is then repaid (with interest) over a short term through regular payments, often via debit order.

Are Short Term Loans Safe?

For the most part, yes. As long as you are working with an accredited financial provider with a good track record – it is very safe to get a short term loan, which is precisely what MyLoan does. But always review the fine print and ensure you understand your signing.

Can I Get a Short Term Loan with Bad Credit?

It depends on the loan provider. In some cases, you can – but it might impact the loan terms you are approved for and the overall interest rate.

Do a Short Term Loan Hurt Credit?

Short term loans can impact credit depending on how they are managed. Timely repayments can have a positive effect, demonstrating responsible borrowing. However, missed or late payments can negatively impact credit scores. Handling short term loans correctly is crucial to avoid potential credit harm. You can learn more about short term loan mistakes to avoid to avert hurting your credit. Handling short term loans correctly includes avoiding mashonisa loans, which can be dangerous for several reasons. Find alternatives to mashonisa loans in Katlelong.

Payday Loan vs. Short Term Loan

A short term loan provides borrowers flexibility in loan amounts and repayment terms, typically ranging from a few weeks to a few months. In contrast, a payday loan is specifically designed to be repaid on the borrower’s next payday and often involves smaller loan amounts and higher interest rates.

Which is Better, a Long Term or Short Term Loan?

Determining whether a long term or a short term loan is better depends on individual circumstances. Long term loans offer lower interest rates and extended repayment periods, suitable for significant expenses. In contrast, short term loans provide quick access to funds but with higher interest rates, ideal for immediate financial needs or temporary cash flow gaps.

How Long or Short Can a Short Term Loan Be?

The duration of a short term loan can vary depending on the lender and borrower’s needs. While specific timeframes can differ, short term loans typically have repayment periods ranging from a few weeks to a few months. On MyLoan, the shortest repayment period on a short term loan is about five weeks.

How Much Would a R5000 Loan Cost Monthly?

These are Two Representative Examples:

A R5000 loan at an interest rate of 5% per month plus a once-off initiation fee of R659.75 (added to the loan amount in this example) and a monthly admin fee of R69.00 over 3 months would have a total cost of R1.430.91.

A R5000 loan at an interest rate of 5% per month plus a once-off initiation fee of R659.75 (added to the loan amount in this example) and a monthly admin fee of R69.00, over 1 month would have a total cost of R1.001.24.