These cash advances in South Africa are the most popular way to meet an individual’s financial needs. They are the kinds of overdrafts that an individual would use to meet his or her needs. In addition, they help to bridge a gap brought about by unexpected expenses between paychecks. The article shall, therefore, enlighten you on how to apply for these products in SA. We’ll also cover eligibility and the companies that are most popular in the country for such cases.
How Can You Apply for South African Short-Term Loans
Applying for this cash advance in SA is straightforward. Most of the lenders have gone online. Hence, in most of these instances, interested parties do not have to leave their comfort zones. Here are the general steps:
- Find a lender: Do a little bit of research and select a lender who can provide you with the loan product.
- Apply: Apply for an application over the Internet. Typically, you will need to provide personal info, including employment and financial details.
- Send in relevant docs: You will be required to send the requisite paperwork. This usually includes your ID, proof of income, and bank statements. The lender has to review the application before approval. Once it is approved, the amount is sent to the bank account.
Who Can Process Short-Term Loans?
These are the bare minimum qualifications:
- Age: Above 18 years of age.
- Residency: Applications must be from SA citizens.
- Income: You must have a reasonable earning source. This can be either from employment, self-employment, or some of the benefits programs.
- Bank Account: This should be an active financial institution profile in your name.
Types of Short-Term Loans in South Africa
They include:
- Bank loans: Money borrowed from a bank. Generally, it may have some eligibility requirements and a credit score.
- Bridge loans: Such loans are intended as temporary borrowings that help fill the time during which one sells a property in order to buy another one.
- Business Loans: These are offered to organizations for working capital, expansion, and purchase of equipment.
- Home mortgages: These are given for the purpose of buying a house.
- Loan commitment: Agreement to issue cash advance, up to a specified amount, at some fixed point in the future.
- Overdraft: A facility provided by banks that permits account holders to withdraw more money than the one remaining in their profile up to a specific limit.
- Payday loans: Short-term lending. They are usually designed to help a borrower pay for his or her expenses until the next salary day.
- Car Loan: It’s provided for the purchase of a vehicle.
- Invoice finance: A way for businesses to get money. It’s based on invoices/amounts they expect to be paid in the future by their customers.
- Revolving loans: Here, a customer can borrow and pay back an amount of any value within the credit limit.
- Business credit cards: Charge plates issued in the company name, not an individual’s name.
- Supply chain financing: A technology-enabled suite of solutions that connect parties involved in a transaction. These include the buyer, seller, and financing institution. It enables low-cost financing and increases business efficiency.
- Asset-based financing: In this case, the asset purchased is an overdraft for equipment. The equipment works as a security measure for borrowing.
- Cost of credit: The charge paid for borrowing money on a loan or earned on an interest-bearing savings account.
- Management buyout finance: The process of acquiring the maximum or entire part of the company by the existing management of a company.
- Merchant Cash Advance: A type of lending where a business owner sells off part of his future sales for current payment.
Top Providers of Short-term Loans in South Africa
The top providers include:
- FASTA: FASTA is registered as a credit provider. FASTA offers short-term loans where one can apply for and receive credit most quickly and with the utmost ease using their 100% online application. Available credit up to R8000 payable in three monthly installments is available through their three financial products: FASTACash, FASTACard, and FASTACheckout.
- Capfin: Capfin is an independent credit provider operating out of South Africa that provides its customers with easy-to-use loan products and services. Capfin can lend up to R50,000 for periods of 6 or 12 months. Capfin loans can be applied for online or at any PEP or Ackermans store countrywide.
- Wonga: Wonga provides flexible short-term loans. It gives out advanced loans to new and repeat customers. New customers are entitled to an R4000 short-term loan, which can be repayable within 3 months. Existing customers can take up to a loan of R8000, repayable within 6 months.
- Boodle: Boodle is a quick app loan lender that disburses the credit amount to the limit of R8000, repayable between 16 days and 6 months. New entrants can avail themselves of the short-term credit for a period of 2 to 32 days up to R3,000. Customers who have availed and completed the repayment of Boodle loans can apply for higher-value loans.
- Unifi Credit: It gives people personal cash advances in sub-Saharan Africa, majorly in Zambia, South Africa, Uganda, and Kenya. The credits are from R1000 to R8000, repayable from 1 month to 6 months. The loan application is entirely done online and in just a few minutes.
