Whether you’re looking for a short-term payday loan for some quick cash, or a longer term personal loan from a bank, we’ve got you covered.
The difference between payday loans and personal loans
The main difference between a payday loan and a personal loan is the repayment time and the maximum loan amount available. Typically payday loans offer a much shorter repayment period with a lower maximum loan amount, whilst personal loans offer a far greater
- Typical payday loan terms – Maximum loan of R2,000 with Maximum repayment period of 30 days (Wonga)
- Typical personal loan terms – Maximum loan of R200,000 with Maximum repayment period of 60 months (Nedbank)
Have you found yourself in a situation where you need some funds? Do you not have a back-up savings account to deal with your financial needs? If you need emergency money for medical bills, home improvement, or some other unexpected expenses then you should consider this kind of loan. When you look into lenders that offer personal loans, you may find that you can get the cash you need within minutes from filling out the application. Just imagine the peace of mind you will feel knowing that you will not have to worry about coming up with the funds you need for your current financial needs.
Recommended Personal Lenders in South Africa
Here’s our recommendations for some of the most reputable lenders for personal loans:
- Udu Loans
There are many different types of loans that an individual can get when unexpected expenses arise. One of the most common loans that people look into is payday loans – a fast, instant loan that you can get on the same day of application. This type of loan is much different to a regular bank loan as it is a short term loan. It is also the ideal option for people who want to get some quick cash to carry them through a short-lived financial issue.
If you have an unexpected medical issue, house repairs, or other unexpected financial need, consider a payday loan. After locating a reputable lender you can go through the process of filling out the application form. Along with filling out the application you need to provide proof of your income.
The income that you provide must be stable and consistent. Income that is not verifiable or consistent in the amount may preclude you from a loan. The lenders will have more confidence in providing you with a loan if they know you are financial able to pay the money back.
If there is no chance of the money being obtained from the bank account other approaches will be taken. The next thing on the agenda is the placement of phone calls to the borrower who has defaulted on the loan. These calls are made in hopes that an arrangement can be made to have the money repaid. If the calls go unanswered or ignored then further action will be taken. The borrower will get reported to the South African credit bureaus after 30 days of nonpayment.
This will result in a negative charge to your overall credit rating. he next step will be for the debt to be sent to a collection agency and ultimately legal action can be taken. If you take out a loan of this nature and find yourself in a jam, contact the lender and see if alternative arrangements can be made. Many lenders can work with you to help get their money back.
Recommended Payday Lenders in South Africa
We recommend only using a reputable provider who is registered with the National Credit Regulator (NCR) and MFSA to ensure that the lender is regulated and credible. Here’s our top recommendations for payday loans providers in South Africa;
- Boodle Payday Loans
- Mpowa Payday Loans
- Get Bucks Payday Loans