payday loans south africa

Payday Loans – The Definitive Guide To Instant Loans [Updated 2018]

payday loans south africaPayday Loans – Financial stability is what we all strive for. However, more often than not, it seems to be impossible. Along the way of reaching out savings goals, we fall short due to emergencies and other things. In the end, frustration builds up as it becomes more and more difficult to secure the amount of money in our savings accounts.

Financially speaking, loans are used at one point or another in an individual’s lifetime. They, as much as people like to avoid them, are an essential helping hand to financial stability. In the rough patches that are inevitable, a little boost can go a long way.

There are many types of loans, and knowing about as many as you can be extremely helpful in the process of choosing the best loan for you. Payday loans are one of the most popular types of loans. From the name, most people would think that payday loans have something to do with a payday. However, they do not. Let us explore just what payday loans are and why they can be just the help you need in your time of financial needs.

What Are Payday Loans?

A payday loan is also called a cash in advance loan. It also goes by many other synonymous names such as salary loan short term loan, and payday advance. This loan works by a cash advance mechanism which allows the borrower to receive cash upon a prearranged line of credit. In other words, a payday loan is a short-term cash loan that is given to the borrower’s personal check. This means the prospective borrower must have good records in their bank standing and have a steady source of income in order to be approved. This is because the lender uses this information to determine whether or not the borrower will be able to repay the loan.

Other payday loans require no credit check, however, this varies from one lender to another. The borrower is required to write a personal check to the lender on the exact amount borrowed in addition to finance charges fees in order for them to receive cash. In some instances, depending on the lender, the bank may require the borrower to sign over their bank accounts to the bank in order to get their payday loan repaid.

To repay the loan, the borrower can redeem the check he or she wrote to the lender at the beginning of the transaction with cash. On the other hand, if the borrower would like to roll over, or extend, the loan for another period of time, there will be a fee added to the lump sum. As to the amount an individual can borrow in a payday loan, it varies from lender to lender as well as according to legal state jurisdiction where the law applies to banking options.

Instant Payday Loans Online

Given the current trend of banking online, payday loans have also been able to move to this new paperless platform. Consumers can now apply for instant payday loans online without the hassle of visiting the physical office to apply for the loan. Through the designated website, the customer will have access to critical information regarding the loan at hand. This information includes interest rates, the amount of time before repayment, and method of cash transfers.

The customer will likely be asked to relay his or her accurate banking information if applying to a site that requires credit checks. For this reason, it is important to have this information handy when applying. Once your online application has been approved, you will be taken to a review page that takes you through the loan agreement details and you will be asked to sign and agree to the terms of the loan. The convenience of this process is that you are able to track important information regarding your loan right online at your fingertips. You can even apply for another loan or roll over your current loan as easily as with a couple of mouse clicks.

One major worry consumers have about applying for their loan online is safety, and rightly so. Given the current cyber threats, it is good to be cautious about giving out sensitive personal information online. However, credible payday loan sites offer top most consideration to the safety of exchanged data online. For this reason, all data transacted between the user and the website is encoded and kept safe.

Why Should You Consider A Payday Loan?

Life happens when we least expect it, and sometimes, we are not at all ready or well equipped to deal with it. We all run into some sort of emergency that requires an amount of money we do not readily have. In these cases where finances appear to be tight and unable to meet at a happy end without taking out a loan, you need to be smart about which loan you will take out. A payday loan is great for those quick between payday and low finance demand emergencies. This is because they are time contingent.

If you are able to pay the designated loan on time, you can be sure that you are safe to take out a payday loan. Depending on your financial ability to repay the loan and how much time you need before you are able to repay, you are able to determine the amount of money you are able to take out. Online payday loans are excellent and convenient.

In this type of loan, the most important factor is your ability to repay. So, if you are sure you will be able to repay the loan in good time, it is the right loan for you. On the other hand, if you are not able to pay the loan by the deadline, there is the rollover option which lets you extend the deadline. For you, this may be a valuable time for you to recoup your financial standing and rectify any discrepancies. If you are steady and careful with the process, you will have a good experience with your instant payday loans. So, if you are ready, find the right place for easy payday loans in South Africa.

Payday loans prove to be a handy tool for many families having poor economic conditions. To apply for these loans is very advantageous for such families or even for individuals. These loans can help you to pay bills and to fulfill your money needs in various emergency situations. As these loans require a little information, so they act as an economic solution for various people around the world. These payday loans provide you certain benefits like you can pay your bills if you apply for these loans which you may not have been able to pay in time.

Advantages Of Payday Loans

One of the major benefits of these loans is that you don’t need to have some sort of credit rating for the approval of the loan. You have to provide some basic information to apply for the loan and then you will get it through a very simple process. You can also apply from your home by filling an online application form. Just you need is a computer and an internet connection and by this, you secure your privacy as no one can steal your personal information.

Disadvantages of Payday Loans

Although there are many advantages associated with the payday loans, there may be some disadvantages which you must consider before applying for the loan. It is important and mandatory for you to assure that you can pay off the loan and the interest which may be included in it within them. If somehow you are not able to pay off the loan in time and ask for the extension, there will be some additional fees that you have to pay.

You can get extension more than one time but each time you ask for an extension, you have to pay its fee. At the end, you may have to pay the company twice the amount given to you as a loan. Definitely, this will not be a good thing for you. One of the reasons for the Downfall of payday loan is the rate of interest which is extremely high. Such interest rate makes these loans difficult to pay off. They are only helpful when you badly need some money or you are in a serious emergency condition.

Under certain circumstances when you are not able to pay off your loan in due time, the amount may be automatically withdrawn from your bank account. But if you don’t have enough money in your bank account to pay off the required amount of loan then the issue may arise. You may be charged some extra fee for having your account deficient in the required amount.

If you take care of the time of payment, you can possibly keep the issue away. While applying for the loan you have to pay special attention to the terms and conditions of the agreement. Usually, the interest rate is 10% – 30%, and if you fail to repay the loan on time, the interest will be doubled for the next payment. The loan repayment plan indicates the duration in which you have to pay the amount back. Normally the maximum time of 30 days is given to repay the loan with interest.

If you are already in debt then you are advised not to avail the payday loan because by this you will be in another debt. One of the conditions for a loan is that you must have a fixed workplace and salary otherwise you are not able to apply for the loan. Another condition is the existence of your bank account. If you don’t have an account you cannot avail the opportunity of getting a loan and your request will not be processed by the lender.

Do You Need A Payday Loan?

Do I need a payday loan? Payday loans are meant for your unexpected expenses that may arise from nowhere. Most people use these loans in certain unusual situations such as car repairs, medical bills or household emergencies. These loans are also called paycheck advances or cash advances. These are basically short-term personal loans which provide you the flexibility to cover your expenses until your next pay comes into your hands. These loans are utilized for urgent cash needs in certain emergency situations. These loans are mostly helpful for low and middle-income families to fulfill their unexpected needs. Sudden emergency situations grab most of the people towards such loans. Most of the individuals are not able to get or borrow money through traditional ways, so they move towards this kind of loans. These loans provide cash even to those people who don’t have good credit. The time frame required for the repayment of loan extends from two weeks to a month.

You can avail a loan of the amount R500 to R1 500 up to R2 500. This amount may vary depending upon the regulations of the country or the loan providing company. Most of these loan providing companies have certain conditions for the borrowers. One such condition is that the borrower must be at least 21 years of age. Some of the facilities provided by these companies include online services by which you can apply online for the loan through the internet. Recent uncertain economic conditions have forced people to get advance loans. Unemployment has caused various financial problems for a common man and most of the people hardly find some means of getting food.

Some people ask this question to brokers. A payday loan is indeed a blessing for those people who don’t have enough money to pay their bills on time. It serves as a great lifesaver for many individuals. The worst situation is when you have an emergency regarding some medical treatment. You cannot delay the treatment but don’t have enough money to pay to the hospital or for the medication. Such emergency situation cannot be ignored in any way.

To avoid such hectic situation people usually tries to apply and avail such types of loans. These loans help a person when he needs money in an emergency situation like car repairing, payment of bills, hospital treatment expenses. If you think to take a loan from a bank, it usually requires certain formalities like filling out various forms and providing a number of personal information.

Contrary to that, when you decide to apply for a payday loan you will not come across such things. You never know when such emergency situation may occur and you immediately need money, so these loans may help you resolving such financial problems. These instant short term loans also have certain limitations. The first and most important thing you must be at least 18 years old to avail this loan. You must be a job holder and have a salary which is provided to you every month. You can enjoy this service only when you are an employee with payday every month.

If you meet these conditions then you can apply for the loan but make sure to use it in a right way. It is better not to use your loan until or unless you have some financial problem like you have to pay the electricity bill or get your car repaired but it will be a bad practice if you use this loan to buy a new electronic device. Taking all these things into consideration, you must be very clear about the time you need to apply for the loan. You must avoid using a loan for the things not much necessary.

How To Apply For A Payday Loan

Getting a payday loan in South Africa is easy and convenient. Your application gets approved in minutes for a loan to pay off emergency expenses before they derail your finances. The lenders try to make the application process fast and easy, enabling consumers of all backgrounds and incomes to obtain cash within 24 hours.

Payday Loans Application

The online application will be forwarded to the lenders that offer a South African payday loan in your area. After the submission your call request we’ll connect you with South African lenders who compete with each other to offer you the best rates. We will ensure that you will receive the full terms of the loan borrowing before you agree to anything, in accordance with the South African regulations.  You will be able to review the lenders and accept their rates, or declined with no further obligation. Once the lender’s terms have been accepted, the request funds are deposited directly into your bank account within 24 hours.

No Hidden Fees

“No Hidden Fees” is our motto when trying to assist you in finding the best payday loan lender in your area. The disclosure of all fees upfront is a must and requested from all the South African loan lenders in our network. When you search for a payday loan at our site, you will be presented with a transparent information on all the lenders, their fees, and business practices. It’s worth to note that all the lenders are accredited and follow the correct business conduct when lending the funds to the public. Once again, it is imperative that you know what amount you will be repaid at the end of the term and remember you can cancel the application process at any time you want with no further obligation. Instant Loans SA is not a lender itself and does not charge a fee to use the online resources presented on the website. Your chosen lender will determine their rates and fees.

Fast Cash to Cover Emergencies

We’ve all had those moments when emergency imposed a threat our financial security. These days, even an insignificant debt may grow out of control. For example, should your car break down, it becomes very difficult to get to work, especially in South Africa with the public transport being not that efficient evenly throughout the country. Being able to pay for the car service becomes vitally important in order for you to get back to work and continue earning money to pay off monthly bills and mortgage. There’s probably no easier and faster way to obtain a grand or two than through payday loan lenders in South Africa. And our aim is to try to help you get as much information as you need to choose the right lender in your area.

Ease of Qualification

Getting approved for a payday loan is simple. Usually, the requirements are very similar from lender to lender and go as follows:

  • You must be at least 21 years old.
  • You need to have a bank account in your name.
  • You must have a working email address and phone number.
  • You must have a job that you’ve been with for at least 90 days.
  • You must be a South African. citizen or permanent resident.

How On Earth Do You Budget?

Sanlam recently launched a video campaign in aid of Savings Month. They enlisted a guy known as The One Rand Man who spent the past month without any form of credit or online financial services. In fact, all he had was his salary paid out to him in R1 coins. After watching the series of short videos I was left with a strange sense of déjà vu. This One Rand Man could easily be me or any one of a number of people I know.

Simply put, we don’t budget.

After seeing how he ended this month with the grand total of R6 to his name, I soon realised that something had to change. I need to learn this art of budgeting. Here’s what I managed to come up with:

1. Start From Scratch

All told, it’s not the hardest thing in the world to work out how much money you have every month and where most of it goes. While not as graphic as R1’s in Tupperware boxes, a simple list of monthly expenses leaves one with an idea of where it all goes. And “goes” it certainly does. Now that I had an idea of how much I actually had left, I could start planning my month.

2. Easy as 1,2,3

Well not quite. Once you’ve worked out all the things you think you will be spending money on, you start to find little-hidden costs you never considered. Bank charges for one – while I knew I was paying them, I didn’t know exactly how much or if there were cases I paid more. Becoming aware of where my money was going was a fundamental step in wanting to shift away from the credit trap.

3. Bad Habits Maketh the Man

Pretty quickly I realised I have developed some terrible financial habits. Things like drawing money from the wrong ATM, using credit to pay for petrol, or simply not looking after those R2 coins left over from a night out. They all add up. And they all cost you at the end of the month.

4. When It All Runs Out

Now, this is the part we need to consider. Salaries run out, and pretty quickly. Soon you realise your money doesn’t go as far as you would like and your debt simply grows as your charge things to your credit card. It’s a cycle that seems almost impossible to break.

5. I Need Help

So budgeting is easy, sticking to it is the hard part? Wrong. Budgeting is not easy. Because we have arrived so late in the day to this idea of being aware of our money, our cycle of debt has reached the point where things are no longer manageable on our own. One could consider debt consolidation – lumping all that debt into one easy, less painful payment per month. Or look into something that gives you a clear breakdown of everything you need to worry about.

One such site is moneysmart. They help you control your budget and keep track of your credit report from the three major bureaus XDS, TransUnion and Experian. Simply plug in your details and they help devise the correct budget strategy for your life.

Confusion With Credit Reports

A lot of us have heard of this thing called a Credit Report. It’s almost one of those words we don’t want to say out loud too often – just in case the Tokoloshe hears us. The problem is credit reports, and our credit status for that matter, is something that affects areas of our lives that matter most – getting a home loan, a personal loan, travelling the world or even paying for that home improvement.

What is your Credit Report?

To put it simply your credit report is the bank’s way of working out whether you are a viable investment for them. It’s how they decide whether or not you are able to afford the loan you have requested from them. Essentially, they want to limit the risk they take when handing out loans to people.

What is MY Credit Status?

That’s the question, isn’t it? Your credit status is something we should all be aware of. Once we know if we have a healthy credit status or an unhealthy one, we can start to understand how it works. The thing about your credit status is that it only takes the raw facts into consideration. It doesn’t care about where you’re from, what age, race or even what your salary is. It simply looks at your debt related information.

How Can I Improve my Credit Report?

Pretty simple really. Ensure you make your payments on time and completely. The moment you let a debt grow, it begins to affect your score. The funny thing is even if you don’t have any debt, your credit score might be super low (and low is bad). One of the simplest ways to grow your credit history is by having a credit card.

Now I’m not saying you go out and spend until you can’t spend any more. Rather, spend a small amount and then pay it off at the end of the month. Keep doing this – it shows you can pay your debts on time. One thing to remember: any late payments can affect your credit report for up to 7 years after the fact.

FICA Who?

There are a few terms in the financial world that inspire that deep sense of frustration – one such term is FICA. If you want to open a bank account, get a personal loan, get loan approval or settle your debt you will need to be FICA’ed – and probably more than once.

Like other 4-letter words starting with “F”, FICA is not something we like to mention in polite terms. Basically, it’s the method used by financial institutions in South Africa to ensure the person, or people, attempting to do anything involving money are who they claim to be. It generally involves supplying 3 months of bank statements, a copy of your ID and a proof of residence.

Now, most of those things seem simple enough to get – especially in the days when banks used to send you bank statements in the mail. Or when you used to receive bills in the post. But the world has moved on from hard-copy documents. Most of our bills come via the internet – you even get your Clicks Club rewards online now.

Then there are these elusive bank statements. Banks don’t send us statements anymore. Instead, we get emailed “links” to our history online. But you can’t just print that out – you need a certified statement from your bank and that means a trip to your local branch.

Not all is lost though! There are new technologies starting to come to the fore in the internet loan world. Now you don’t need 3 months bank statements printed out and stamped with that ugly blue mark the banks love. All you do is plug your online banking credentials into a program – using the same security measures as normal online banking procedures use – and hey presto, statements were done.

This not only makes for fast loans but also allows for you to get a complete and free credit report. This means that you now know your credit status before you even take out a loan. This helps you make an informed decision on how much money you want to borrow and what interest rate won’t leave you struggling for months to come.

FICA is an unfortunate, necessary evil. It might keep those dodgy money launders at bay but it also adds a layer of frustration to everything financial. So next time you need to get a personal loan you should check out the options online that streamline the process and stop you using that other four-lettered “F” word.

The Crazy Credit Costs

We’ve all heard the story about ensuring we get a credit history so we grow our credit status with the banks. It’s the only way to get a loan after all. However, how many of us truly know what kind of expenses we are incurring each and every month while we try to show the credit bureau we are “creditworthy” people?

Interest Rates

Credit card interest rates are simply scary. There’s no way around it – if you’re late then it’s going to cost you. A lot. Most credit cards will give you 30 or even 60 days interest-free on your credit card, but the problem comes when you haven’t paid the money back at the end of that allotted time. The bank can charge you somewhere in the region of 25-30% on any outstanding amount left unpaid. Consider how much your new TV would cost if you added 25% to the cost every month – you could end up paying for the TV twice before you were done!

Bank Costs

When it comes to admin fees, banks are the best in the business. There is almost nothing you can do at a bank without incurring some cost or another. Credit cards are especially handy when it comes to tacking on admin fees. Banks are allowed to charge up to R150 initiation fee just to get you in the door. Shop around before committing to any credit card – you might be able to save yourself a few bucks!

Insurance

The bank needs some insurance against the unlikely event that you die before you finish paying off your debts. This insurance ends up being covered by the consumer. Always read the fine print when accepting a credit card – make sure you know exactly what you’re paying for each month.

Penalties

The bank is allowed to charge you a penalty fee if you exceed the limit on your credit card or are late in making payment. Always know what your credit limit is before swiping your card. You could end up paying more than you expected!

Online Loan Options – Which Is Right For You?

The internet has allowed us to get instant loans with just a few clicks of the mouse. Whether we need an emergency personal loan, a payday loan or a low-interest personal loan, there are so many options out there.

Here are a few you might consider:

The Payday Loan

Payday loans have become something of an internet sensation in the past decade or so. You can’t turn on a radio or TV without seeing one advertised. These kind of loans are the ones we should be most careful of. They generally will loan to just about anybody, regardless of their credit status. This leaves the creditor charging very high interest rates to cover his risk.

Make sure you are able to pay back your payday loan within the next month before you sign up for one. Budget properly and have a clear idea of whether or not you will be able to clear the debt and not fall short the following month. These loans should be kept for emergency situations only.

The Personal Loan

Different to a payday loan, personal loans are offered by most financial institutions. They take into account your credit report and lend money on terms that are agreeable between both parties. Generally used to acquire larger sums of money like a car deposit or rent deposit, the loans can be as high as R150,000.

There are several options when looking to get a personal loan:

  • The conventional method of going to the bank and demonstrating why you need the money
  • The online method of applying via one of the many online financial lenders
  • The social method of approaching one of the peer-to-peer lending sites around and getting funded by individuals who see you as a way to grow their money while helping someone else out

Whichever way you acquire your loan, always do your research first. Check out the financial lender you have approached, know all the terms and conditions of your loan, and ensure you are able to afford the repayments without leaving yourself in danger of defaulting.