Payday loans are now becoming widely popular among the people of South Africa, probably because they’re easy to obtain and you can get cash in hands within hours without much of paperwork.
With a struggling economy, people now find it hard to pay their bills and mortgage payments on time. The easy access to cash within hours, and no extensive credit checks makes these payday loans very attractive!
When do payday loans come in handy?
For all those who live from paycheck to paycheck, there can be some situations where these payday loans can the best option to cover life’s unavoidable expenses. Anybody can suffer an unexpected emergency such as a car wreck, a sickness that requires immediate hospitalization, or even a bill that was forgotten.
Years ago you would have borrowed money from your family or friends, causing strained relationships, but now it’s simple payday loan that can take care of all your problems quickly and easily.
How to apply for payday loans South Africa?
Most of the lenders of payday loans are now online. Therefore, you can now apply discreetly right from the comforts of your home or office. The loan amount you can apply for may range between R100 and R2500 initially. Once you successfully repay your loan amount, lender can even raise the limit for your future loans. Some lenders charge a one time fee based on some percentage of amount borrowed.
You have to pay back your payday loan amount within thirty days. This is mostly the time when your next paycheck comes around. Some lenders are more flexible and would allow extension of time period depending on your individual situation. They might charge a small fee.
What makes these payday loans South Africa Great is that you can get cash quickly in your checking account, and you can apply for these loans right from the comforts of your home. As you get cash within 24 hours, you can easily take care of any emergency at that moment. This is much better option than banks as they may take days to approve your application and you will have to submit lots of documents.
How it works?
Once you are approved for the payday loan, the lender will offer you an amount based on your monthly income and possibly your history with that lender if you’ve borrowed from them before.
You will have to provide the date of your next paycheck and details of your bank account. On your next payday, the lender will automatically take the loan money out of your account, which will include the loan amount and any interest and fees charged. Often, this date is negotiable.
The best thing about payday loans South Africa is that almost everybody can qualify. Most of the lenders do not check your credit history when you apply. Therefore, you can qualify even if you have a bad credit score.
Eligibility for getting a payday loan
* You should have a stable job with a reputable company with a fixed income for at least past six months.
* You should have a active bank account
* You should be at least eighteen years of age
* You need to be SA citizen
Although payday loans might not be an answer to all your financial difficulties, but when you have nowhere else to turn, this can be a godsend opportunity until your next paycheck arrives. You might have to pay a slightly higher rate of interest, but then it’s just for 30 days when you repay your loan.