Mpowa Finance Lender Review

Mpowa Finance is a South African online loan provider that was established in 2008 and evolved into a direct online lender in 2014. Since then, the company offers easily accessible short-term loans, ranging from a few hundred to a few thousand rands, with a repayment term of up to 45 days.

Mpowa Finances has developed into a recognised online loan provider over the years and is known for providing quick and effective payday loans, promising to deposit up to R8 000 into the borrower’s bank account before 5 PM (if the application is successful).

In this review, we’ll take a closer look at the company’s services, fees, requirements, and overall reputation to help you decide whether Mpowa Finance is the right lender for you.

Mpowa Finance at a Glance

Loan amount: R500 - R8 000
Loan term: 30 - 45 days
Interest rate: 3% - 4.5% per month
Initiation Fee: R165 + VAT (up to R1 000), 10% + VAT (above R1 000)
Monthly Service Fee: R60

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What You Should Know:

Mpowa Finance is well-known for its provision of short-term loans that are designed to be repaid quickly, usually within a month. These loans are especially beneficial for individuals who need cash on the same day and can commit to repaying the loan within the specified time frame (usually one month).

Mpowa Finance checks applicants' employment status and runs a credit check to ensure that they can repay their loans. It is important for borrowers to be truthful in their application and provide accurate information, as this will increase the likelihood of their loan being approved. It is advisable only to borrow what you need and to use the loan for its intended purpose.

Pros of Mpowa

Provides a hassle-free loan application process that is completely online.
Ensures prompt service, guaranteeing that the loan payout will be available by 5 pm on the same day of loan approval.

Cons of Mpowa

Does not offer flexible repayment terms. The loan contract will require repayment by the next month.
Getting in touch with MPOWA's customer support can be challenging as their services are primarily online.
Mpowa is a short-term lender, meaning they do not offer particularly big loan amounts or flexible repayment terms.

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*Representative example: Estimated repayments of a loan of R30 000 over 36 months at a maximum interest rate, including fees of 27.5% APR would be R1 232.82 per month. BetterLoans is an online loan broker and not a lender. Our service is free, and we work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant’s credit score and other factors at the lender’s discretion. Loan amount R500 – R350 000. Repayment terms can range from 3 – 72 months. The minimum APR is 5%, and the maximum APR is 60%.

How Do Mpowa Finance Loans Stand Out?

Mpowa finances stand out for their quick loan deposits, sometimes within the same day. This service is ideal for applicants who need a cash loan as soon as possible. The process is completely done online, and the applicant only has to provide basic information and brief financial details.

Mpowa finances offer flexible loans, so the applicant does not need to take on more debt than they can repay. The company also uses DebiCheck, meaning they will not deduct money from your account unless you approve the debit order.

Mpowa Finance Loan Products

Short term Loans

Mpowa Finance is a financial service provider mainly providing short-term loans from R500 to R8 000. You can apply online, and if approved, the loan amount will reflect in your bank within the same business day, Mpowa Finance loans usually have a repayment term of 30 days, and in some cases, the loan term could be extended to 45 days.

Benefits of Taking a Loan from Mpowa Finance

Mpowa Finances provides speedy access to funds for individuals in urgent need of financial assistance. Their loan approval and transfer process typically takes only one day from the time of application submission. This service can prove especially beneficial for those facing unforeseen expenses or emergency situations.

The company uses a tiered interest rate system, which means that customers who borrow from them repeatedly over the course of a year may be able to benefit from lower interest rates on their payday loans. This system incentivises repeat business and rewards loyal customers with reduced costs.

Mpowa Finance Loan Interest Rate and Fees

Mpowa Finance has a particular interest rate policy, where the first loan in a calendar year has an interest rate of 5% per month. However, any loans thereafter taken out within the same calendar year will have an interest rate decrease to 3% per month.

Mpowa Finance charges a monthly service fee of R60 for all loans in addition to the interest rates applied. This means that regardless of the interest rate you are charged, you will still be required to pay the monthly service fee of R60.

Customers who choose to take a loan with Mpowa Finance should be mindful of the charged initiation fee. The fee is calculated as a percentage of the loan amount and is determined by a tiered system. For the initial R1000 borrowed, the initiation fee is set at R165 plus VAT. For any amount borrowed above that figure, the initiation fee is reduced to 10% plus VAT.

How To Qualify For Mpowa Finance Loan

Qualifying for a short-term loan from Mpowa Finance is quite easy if you meet all the criteria. First and foremost, you need to reside within the borders of South Africa. This requirement ensures that the loan services provided by Mpowa Finance are accessible to individuals living in the country. Additionally, you must be at least 18 years old, as this age restriction ensures that borrowers are legally adults and capable of entering into financial agreements.

Another important criterion is having a stable employment history. Mpowa Finance requires borrowers to have worked for the same employer for at least three months. This condition demonstrates a level of financial stability and reassures the lender that you have a regular income source to repay the loan.

Lastly, you need to demonstrate your ability to repay the loan. Mpowa Finance assesses your financial situation to ensure that you have the means to repay the borrowed amount within the agreed-upon terms. This evaluation is standard practice for any loan application and helps safeguard both the borrower and the lender.

How to Apply for an Mpowa Finance Loan

The best way to apply for a Mpowa loan is to use BetterLoans. In addition to Mpowa, we request loan offers

You can also apply for a loan online through Mpowa Finance’s website. To start the application process, you need to create an account on their website and complete the online application form. Once you submit your application, you will receive a loan contract via email. It is important to carefully review the contract and take note of any additional fees.

After reviewing the contract thoroughly, you must sign it and upload it to the website. A representative of Mpowa Finance will contact you to verify the loan contract details and ensure everything is in order. Failure to comply could result in delays in your loan application.

How Long It Takes Mpowa Finance to Approve a Loan

Mpowa Finance aims to provide a loan decision within 24 hours of receiving an application. However, this is subject to the applicant meeting all the eligibility criteria and providing all the necessary documentation required by the lender.

In some cases, Mpowa Finance may request more information or documentation to authorise a loan. Consequently, the approval process could surpass the 24-hour timeline. To ensure the application gets approved as soon as possible, the applicant should ensure that they meet all the eligibility criteria.

Is Mpowa Finance a Trusted and Reliable Lend?

Mpowa Finance is a reputable lender based in South Africa. The company is registered with the National Credit Regulator (NCR), which is the regulator of the South African credit industry. This means that they are required to comply with the National Credit Act and other relevant legislation.

According to approximately 500 reviews on Hellopeter.com, Mpowa Finance has received an average rating of 3.6 out of 5. While this score is relatively average, some negative reviews have expressed dissatisfaction with the company’s communication.

Before borrowing money from any lender, it is vital to conduct extensive research and carefully evaluate your options. Additionally, it is essential to review the terms and conditions diligently to comprehend the expenses and charges associated with the loan completely.

Mpowa Finance Contact Details

Office Address: 410 Jan Smuts Avenue, Randburg, 2024, Gauteng
Open:07:00 – 16:00
Email: [email protected]
Phone: 086 122 8228
Website: https://mpowafin.co.za/

Foli has an MSc. Economics degree, and has been active in South Africa lending space for years. Whenever he is not writing, you will find him building websites.