We all need to borrow money at one stage or another to cover off an unexpected expenditure and often times these emergencies come totally out of the blue – well, this is where an instant online personal loan can help out!
Short term personal loans are increasingly available online – and unlike conventional personal loans that are offered by your normal banks or other lenders, these online providers offer same-day approvals and cash in your account in less than a day!
Why you should apply for a personal loan online
Depending on the total amount that your are looking to borrow, an online personal loan application might actually save you time and hassle! You can apply for amounts of up to R15 000 for your personal loan, and the approval process is quick and easy to complete from behind your desktop or mobile.
Whilst the super-speedy turn around time is obviously a key benefit, you should review you choice of lender carefully and compare all associated costs involved, as well as ensure that your understand the repayment terms in full! Even though online personal loans fall into the category of unsecured loan, you are still very much liable for the repayments and should you falling behind or missing out to repay the agreed upon amount on the set date will have significant negative impacts on your credit rating.
Many of the online personal loan companies operate on a payday model, which means that they will lend you small amounts – normally less than R 10 000 – for periods of up to 45 days….perfect for life’s unexpected expenditures, but not ideal if you’re looking for a more substantial loan. If you require funds in excess of R20 000, going directly to your bank and sitting through the gruelling application process is probably the best choice as you will get better interest rates and save on repayments.
When is a short term personal loan right for me?
As explained above, these types of loans are short term solutions – they are not designed to provide long term credit or overdraft facilities. As such, the interest rates on short term personal loans will be higher than what you would pay on a normal loan – however the approval process will be MUCH quicker, plus you can have cash in your account oftentimes in less than a day!
You should use these services if you find yourself in an emergency, face an unavoidable and critical expense or need to repay some other credit obligation (like an overdue retail account) that could otherwise get you blacklisted. You should NOT use short term personal loans to fund other outstanding payday or other loans, or to buy the latest gadget or blow the money on entertainment or other discretionary spending.
If your struggling to meet your loan obligations, always contact your loan provider before missing a payment, as they might be able to assist in extending or amending their repayment dates slightly. However, if you feel overwhelmed by your credit and struggle to maintain the repayments, you should consult a debt consolidation service so that they can assist you with making these obligations manageable.