With a short-term loan, you can get a cash amount up to R80,000 at a low rate of 13% that can be processed just as quickly as a payday loan and repaid over up to 24 months – access the perfect same-day short-term loan today.
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If you need a loan for something that requires a bigger amount than a payday loan but don’t want to get stuck in debt for years, a short-term loan is an ideal solution.
We have provided you with a comprehensive list of short-term lenders below.
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.
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.
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.
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.
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.
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:
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 Loans South Africa offer online loan applications 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.
