Wonga - Lender ReviewPublished: 10/09-2021 Category: Articles
Wonga is an alternative lender that provides fast loans to South Africans. New borrowers can get up to R4,000 payable over three months, while returning customers get up to R8000 payable over six months.
Wonga: Quick overview
- Loan amount: R500 - R4000 (up to R8000 for existing customers)
- Loan term: 4 days - 3 months (up to 6 months for existing customers)
- Interest rate: 0.16% per day (Maximum monthly interest is 5%)
- Fees: Initiation fee and monthly service fee
Wonga: Full review
According to Wonga, they are the first financial institution to fully automate the lending process. That means applying for a Wonga loan is a 100% online process, which translates to more convenience and a faster way to get the cash you need.
Wonga provides only one financial product, and that’s short-term personal loans. In a nutshell, borrowers can get up to R4000 if they’re new, while existing customers can get up to R8000, depending on their trust rating. As an online lender, Wonga uses sophisticated technology to simplify the borrowing process.
Representative example: Let’s say you borrow R3000 over 30 days. You will have to pay back the loan in one instalment of R3657. So, your interest and fees will cost R657. If you're borrowing R1500 over the same period, you will owe a total of R1902.42.
Pros of Wonga
- Fast and convenient loans: If you’re faced with a financially urgent situation and need a quick and easy loan, Wonga is your best bet.
- Responsible lending: Wonga is very strict about who they lend money to. If you think taking out a loan is unnecessary or you can’t afford it, or you have financial troubles, Wonga encourages you not to apply.
- No hidden charges: Wonga is transparent, so you will know the total cost of the loan before you apply. This helps you determine what you can and can’t afford.
- Early repayment: It’s possible to save on interest by paying off your loan early. Wonga will not charge you for this.
Cons of Wonga
- Limited options: Wonga doesn’t provide any long-term personal loans, so it’s not ideal for borrowers who need larger amounts for purposes like buying a car or going on holiday.
- No offices to visit: You won’t be able to visit a branch and apply for a loan should you feel the need for some face-to-face customer service. With Wonga, even the paperwork is uploaded online.
How does Wonga work?
Getting a loan from Wonga involves five steps:
- Loan details: You have to decide how much money you need and when you want to pay it back. Wonga will let you know upfront the full cost of the loan based on your desired loan amount and term. If you’re happy with what you see, you can proceed with the application.
- Complete the application form: The next step is filling in Wonga’s secure online application form. You will need to supply your personal information, SA ID number, as well as details about your employment, monthly income, expenses, and bank account. Once you do this, Wonga will immediately let you know if you have been approved.
- Verification: After approval and before you get your income, Wonga still needs to verify your income. This requires you to upload your latest payslip or bank statement, which contains your personal details and clearly shows your income. You can upload the documents from your computer or upload pictures of your document using your cellphone.
- Getting the money: Wonga says they always work hard and fast to verify your income, so you can get your cash as quickly as possible. Once the verification process is over, the money is transferred to your chosen bank account.
- Paying back the money: Wonga will collect the money automatically from your bank account on each due date, so be sure the required funds are always available.
Which types of loans do Wonga offer?
Wonga only provides short-term personal loans, ranging from R500 to R4000 and which can be repaid over a maximum period of 3 months. Here are more details about this type of loan:
- How much can you borrow?
If you’re new to Wonga, you can borrow as little as R400 and up to R4000. Existing customers can get up to R8000. Wonga uses a trust rating that checks if you have paid your previous loans on time. That means you can only get more cash once you prove you’re a responsible borrower.
- How long does it take to receive funds?
Wonga has no specific timeframe for delivering the cash, but they say you will get it as soon as you are approved. However, sometimes delays can happen during the verification process, especially if you provide insufficient information. Or, the money might take a while to reflect in your bank account.
- What can you use the money for?
Wonga’s main help is to help those who need a small loan urgently, whether it’s to pay a bill or make car repairs. Generally, it’s up to you to decide how best to use the money.
- What do you need to qualify?
You will need an SA ID number, phone number, valid bank account, and a payslip or bank statement showing your income.
- Who can qualify?
Wonga provides loans to full-time workers, part-time workers, the self-employed, and even students and pensioners. However, you will need to prove you earn some form of income, whether by supplying a payslip, a business bank statement, rental income, or a private pension.
- Are repayments flexible?
Yes, Wonga allows you to choose your due date and when you want to repay the loan. You can also log into your account to view your balance and track your payments.
Is Wonga a safe and good option?
Yes. Everything Wonga does is legitimate and above board. For starters, Wonga is a member of Micro Finance South Africa (MFSA). It’s also a registered credit provider with the National Credit Regulator, and all its customer representatives are registered with the Council for Debt Collectors. In addition, Wonga is a responsible lender that only provides loans to those who can afford it through a secure platform that keeps all your personal details safe and protected.
Who is Wonga best for?
Wonga is best for borrowers who:
- Have urgent and short term cash-flow problems
- Need a convenient and fast application process that’s 100% online
- Are looking to repay their loan quickly
How do I apply for a Wonga personal loan?
Applying for a Wonga loan is quick and easy. But how do you know that Wonga is the best lender for you? That’s where MyLoan.co.za comes in. We help you compare top loan options in South Africa from all the popular lenders so that you can end up with the best deal.
When you apply with MyLoan.co.za, you only have to submit one application by filling out our simple form. We then forward your application to several lenders, including Wonga. If you qualify, the lenders will get in touch with an offer. The next thing is comparing these offers and deciding which one is best for you.
Typically, when you’re comparing lender offers, we recommend looking at factors such as the interest rate and the total cost of the loan. These are the factors that determine if you can afford the loan. You should also consider factors like the loan term, which affects the size of your repayments. The longer your loan term, the more affordable your repayments will be, but you pay more interest in the long run.
Once you figure out which option is right for you, you accept the offer and get your money!
To start now, fill in our simple and convenient application form, and MyLoan.co.za will do the rest for you.
How do I contact Wonga?
- Call 0861 966 421. The call lines are open between 8 AM and 6 PM on weekdays and 8 AM and 1 PM on Saturdays.
- Email email@example.com for issues related to customer care or loan applications. If you have a repayment query, you can email firstname.lastname@example.org.
- If you’re dealing with you can call 0861 968 424 or email email@example.com.