Finance 27

AmountPeriodWhat you’ll need
If you are a new client we will limit you to a R2 500Up to one monthYou need to be a South African citizen and above 18 years of age. You also need to be employed and have a valid bank account

Xcelsiorloans

AmountPeriodWhat you’ll need
From a minimum of R5 000 to a maximum of R500 000R500 000 is the maximum amount you can getYou would only need to bring along your ID/Passport, Drivers Licence and the original registration papers of the vehicle registered in your name.

Finchoice

AmountPeriodWhat you’ll need
Loan up to R3500Pay us back on your next pay dayYou must be a South African citizen who has a bank account

Boodle

AmountPeriodWhat you’ll need
Borrow between R100 to R2 500 in a flashRepayment terms can be between 2 and 32 daysAll you need is you, a computer, an internet connection and your cell phone to receive your one time pin. Just have your banking details and ID number.

Difference between Short Term Loan and Payday Loan

The significant differences between the Payday loans and Short term loans include:-

Short term loans Payday loans
  • Access to more substantial amount than regular payday advances
  • More of a payday advance that involve lower amounts of money
  • An extended payment period from 1 to 6 months
  • Generally a 30 days loan term
  • Payable in either fixed or flexible installments
  • Borrower required to clear paying the loan in 1 to 2 months after borrowing and usually needed to make a lump payment,  although some lenders accept multiple small payments.
  • Can be secured or unsecured loans
  • Usually unsecured
  • Possible to request for payment time extension especially the secure short term loans
  • No time extension – extra fine or interest accrued if the borrower doesn’t clear the loan on time
  • A borrower has to pass the credit check to qualify for the loan
  • This is more of a payday advance, and most lenders may not necessarily require a  credit check


Why get a Short term loan?

Short term loans in South Africa — IPayLoansShort term loans are structured to cater for emergencies where one requires money promptly, but they not limited to emergencies only. Situations occur where suddenly you may need cash you don’t have, amount your friends and relatives may not be able to raise. In other circumstances, you may have the amount of money you need but unable to access it. In such situations, a short term loan is the best alternative to consider.

Short term loans may also be useful in a non-emergency situation where one requires to borrow money to boost his income/business or any other need for a short time. The loan saves one waiting time in acquiring the needed amount or hastens the business growth.

How to find a short term loan?

In the past, getting finance was a complicated affair with numerous bureaucratic handles. Getting a loan instantly or least on the same day was even a steeper hill to climb. There was no formal loan for emergencies of immediate needs, only from unreliable sources such as friends and relatives or risky and exorbitant shylocks. The financial institutions identified this loophole and introduced the Short-term loan that has less or no bureaucracy.

With modern technology, finding and getting a short-term loan has even been made easier. You can search online for companies offering short-term loans, compare their charges, terms & conditions, choose the lender of your choice, and contact them wherever you are. You will be spoilt of choice by the number of short-term-loan lenders in South Africa alone before even considering the international lenders.

Short term loans in South Africa

South Africans have access to a wide range of short term loan lenders in South Africa that include:-

  1. Banks, SACCOs, and other financial institutions – financial institutions are the most known lenders across the country as this is their specialty and also because of their fair distribution across the country. Different financial institutions have different conditions when it comes to how much you can borrow as a short term loan, the security or collateral needed, the loan payment period, limit and flexibility, and interested charged. For some of the banks, you may apply for the loan entirely online and cash out to your bank account, especially those that don’t require any collateral while others mandate borrowers to visit their outlets. However, as a requirement from most financial institutions, you must pass the credit check-in line with the National Credit Regulation to qualify for the short term loan.
  2. Pawnbrokers – these are individual or business outlets licensed to offer secured loans. Usually, pawn-shops require the borrower to deposit valuable items such as jewelry, electronics or personal properties of higher monetary value than the credit borrowed as the collateral referred to as ‘pledges’ or ‘pawns.’ The ‘pawner’ later redeems the deposited item by paying back the loan plus some interest within the agreed time. If the borrower fails to redeem the pledge at the agreed time, the pawnshops are authorized to list it for sale to recover their money. As a result, there is a risk of the loanee losing his/her valuable used as collateral, but on the other hand the pawnbrokers do not report defaulters to the customer’s credit report thus they do not affect one’s creditworthiness.
  3. Online Lenders – this is the new form of lending that has taken off drastically. Online loaning is done through mobile apps or website by licensed lenders. Financial institutions such as Savings and Credit Cooperative Organizations and banks are jumping on the bandwagon too. The borrower downloads the lending app to their phone or visits the lending website and fill up a form. These online lending platforms are configured to automatically conduct an ITC check on the applicants as they have a link to the TransUnion customer’s credit report database, and if your credit score qualifies the application goes through.

How short term loans help you

Short term loans come in handy in many ways:

  • In emergencies, one can cater to the needs promptly as they emerge. The short term loans are usually processed in under 24 hours.
  • Short term loans save one from numerous bureaucracies you may be required to go through when acquiring loan amounts higher than what payday loans offer.
  • It can be a good source of income to grow your business as even the small income earners can get short-term loans as the loan amounts and payment terms are flexible.
  • The interest charged the majority of the short term loans are significantly lower than payday loans
  • A good percentage of the short term loans do not necessarily require one to provide security thus even the individuals without much to list as collateral can still access the loan as long as they can prove their ability to repay the loan.

Short term loans South Africa — Choose Fast Money from IPayLoans