A Basic Guide to Short Term Loans in South Africa
The South African financial industry is robust and growing at a rapid pace. An increasing number of people are turning to short term loans for instant cash solutions.
These loans are great short term financial solutions for covering major or emergency expenses. Whether you need to pay for your tertiary education costs or if you need money to pay for a hefty medical bill, short term loans can provide ideal solutions.
Where can you get short term loans in South Africa?
In South Africa, the most popular lending options for many borrowers are still banks. In recent years there has however been a great increase in the number of people opting for micro lending institutions.
What makes these lenders popular are the fast processing times, simple application processes and qualifying criteria. Traditional bank short term loans can be very hard to get, especially if you have a bad credit score, but micro lenders are often to consider mainly individual affordability.
Various micro lenders offering short term loans in South Africa include the likes of:
- Wanna Loan
- Xcelsior Loans
- Cobol
- InstaLoan
- Bridge Loans
- Get Bucks
- Bayport
- Letsatsi Finance
- MBC Finance
- Mpowa Finance
Various lenders offer their own lending terms and amounts granted are usually based on individual affordability and creditworthiness. Short term loans in South Africa usually have a repayment term of 1 to 12 months. Lenders may extend this term at their own discretion.
Like any other personal loan, short term loans need to be managed properly. Borrowers must repay the loans by the set repayment date in order to avoid a negative impact on their credit records.
In South Africa, financial institutions that offer short term loans are required to be registered with the National Credit Regulator (NCR) and they must operate according to laws set by the National Credit Act.
