Short-term loans

Tailor-made loans for your short-term lending needs

South Africans can get a short-term loan from a wide range of lenders including major banks, peer-to-peer lenders, online lenders, and credit brokers.

The interest rates and terms vary extensively from lender to lender but, due to caps imposed by the National Credit Regulator, you cannot be charged more than 60% per annum on any cash loan that meets the set criteria.

We have included a complete list of short-term lenders and have summarized their individual offerings to help you find a lender that meets your needs.

Payday loans vs Short-term loans

Although these two forms of credit can generally be accepted as one and the same, there are significant differences that consumers need to consider before deciding on which option is best for them. Payday loans generally have a loan term of 30 days or, 1 month, while a short-term loan can be repaid in instalments ranging from 1 to 24 months.

In addition, a payday loan will likely offer you no more than R3,000 while a shorter-term loan can provide you with credit of R5,000 and above. Finally, while all payday loans are unsecured, there are short-term lenders that require security.

Why should I consider Short-term finance?

• They offer bigger loan amounts than regular payday advances
• They offer shorter repayment terms than personal loans - so you can save on interest
• They can be both secured and unsecured
• You can get a loan online - no queues necessary
• Loan processing times for quick loans are usually under 24 hours
• You can get a small amount and repay in up to 6 months
• Interest rates are usually lower than those incurred with payday loans
• They offer flexible repayment terms and flexible loan amounts

Compare multiple loan options

A shorter-term loan is, in essence, a perfect mix that offers a medium loan amount, a shorter loan term and a quick loan processing time.

We have listed lenders and included details on their short-term finance offering which include their APR, minimum and maximum loan terms, minimum and maximum loan amounts and various other details to help you make an informed decision.

Compare lenders based on:

• How much the lender offers
• The loan terms offered
• Whether you meet their minimum requirements (some lenders require good credit while others don’t)
• Whether the lender conducts credit checks or not
• The Annual Percentage Rate (APR) offered on the loan
• The speed at which the lender processes loan applications

What do I need to know about Short-term loans?

Shorter-term loans typically carry a higher interest rate than personal loans. More importantly, it is the large banks that offer the lowest interest rates and consumers should always consider these lenders before turning to alternative credit providers.

The problem with these large banks is that they tend to have stringent application requirements and will more than likely require the applicant to have a decent credit history to qualify. With so many South Africans struggling with debt and having some form of negative credit history, these requirements are difficult to meet.

If you do not meet their requirement you can opt to apply for credit with one of the many alternative credit providers who may charge more interest but will serve you faster and will likely approve you.

I have Bad credit, can I still get a loan?

While most banks and the mainstream lender will not offer a loan to someone who is blacklisted, there are many lenders who specialize in providing credit to people who have bad credit. If you have been refused credit by your bank making use of these alternative lenders may be your most feasible solution.

Some lenders may require you to provide security in the form of a vehicle or valuable piece of jewellery while some lenders may not ask you to provide security.

We have conveniently specified whether or not the lender will conduct a credit check upon receiving your application. To increase your chances of being approved for a loan for bad credit - consider using lenders who do not conduct credit checks.

What do I need to apply for a loan?

The majority of lenders will require applicants to be aged over 18 and under 65, to be South African citizens or permanent residents in possession of a valid green bar-coded ID or a smart ID card, to be employed and earning R 1,500 per month or more and to be able to provide the required supporting documentation which includes:

• A copy of the applicant's ID
• Proof of address
• Bank statements
• Payslips

The loan application process

The application process you will encounter when applying for a short-term loan will be much quicker than that of a personal loan but will also be a little more detailed than what you'll have to go through when applying for a payday loan.

All the lenders listed on LoansPlus offer a loan application online where you will be asked to fill in details such as your name, your ID number, monthly income, employment information, address, contact numbers and so on.

Once you’ve completed the form you can upload your supporting documents or, send them to the lender by fax or email. Once received the lender will check the information, supporting documents and in certain cases conduct a credit check.

Once this has been completed you will then receive a loan offer. This loan offer must be signed after which the lender will credit the loan to your bank account.