Short term loans – or payday loans – have become exceedingly popular in South Africa with borrowers looking for easy, quick access to cash to cover emergency expenses. And with the introduction of Wonga in South Africa, people looking for short term finance in SA now have a reputable, trusted provider to help them with short term credit needs.
As the name implies, short term loans are normally smaller amounts that people can borrow and repay in shorter time frames (hence also the term payday loan). Short term loan providers in South Africa have less stringent approval requirements, so a lot of people prefer them to their normal bank, where loan approvals are scrutinized in detail, and approvals take for ages!
In order to qualify for an online short term loan in South Africa you will need the following:
- You need South African Citizenship with a valid ID
- You must have completed 18 years of age
- You must hold a valid bank account
- You need a valid cell number
Most short-term loans have a 40-day repayment cycle which means you can conveniently pay when your payday arrives. The loan amount is also totally flexible so you can set the credit according to your needs and repayment abilities.
As mentioned above, the arrival of Wonga in South Africa has changed the face of the local short term loan industry by moving the application process entirely online! This results in easier applications, speedier turn around times and increased transparency in rates and fees for the borrower. Wonga uses special online risk assessment technology that will evaluate your request and inform you of whether or not you were successful within minutes. If approved, Wonga will have the requested funds in your account within 24 hours which makes them great to use for those unexpected emergencies.
Get Bucks & Boodle are two other short term loan providers in South Africa that have copied Wonga’s model and are making short term loans available online. Whilst Wonga still benefits from the experience they gained by becoming the biggest short term loan provider in the UK, the local competitors are continuously working on improving their services and offer a great alternative to Wonga.
While having access to quick and easy credit online definitely has its advantages, short term loans should also be taken out with care! The interest rates on them are very high, and since they are designed as short term credit, you should always look to pay these back asap! Also make sure you understand the risks and penalties associated with failure to repay the loan and do a quick calculation of all the fees and charges so you understand exactly what you will be charged on your loan.