Compare Short Term Loans Online
Compare Short Term Loan Lenders and Make a Better Loan Decision.
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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%.
Some Lenders We Compare
In the dynamic economic landscape of South Africa, short term loans have emerged as a popular financing solution. They offer quick cash flow when needed, bridging financial gaps or covering unexpected expenses.
Compare Short Term Loan Lenders In South Africa
Mpowa Finance Short Term Loan
- 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
Unifi Short Term Loan
- Loan amount: R250 - R8 000
- Loan term: 1 - 6 months
- Monthly Interest Rate: 3%
- Initiation fee: n/a
- Monthly service fee: R69
Sunshine Short Term Loan
- Loan amount: R500 - R4 000
- Loan term: 4 - 49 days
- Monthly Interest Rate: 5%
- Initiation fee: n/a
- Monthly service fee: n/a
Finance27 Short Term Loan
- Loan amount: R500 - R8 000
- Loan term: 8 - 65 days
- Monthly Interest Rate: 3.2%
- Initiation fee: n/a
- Monthly service fee: n/a
Boodle Short Term Loan
- Loan amount: R100 - R8 000
- Loan term: 2 days - 6 months
- Monthly Interest Rate: 5.3%
- Initiation fee: R165 + 10% of the loan amount
- Monthly service fee: R60
Lime Short Term Loan
- Loan amount: R300 - R5 400
- Loan term: 5 - 49 days
- Monthly Interest Rate: 4.9%
- Initiation fee: 10% - 16.5% of the loan amount
- Monthly service fee: R69
FASTA Short Term Loan
- Loan amount: R800 - R8 000
- Loan term: 1 - 3 months
- Monthly Interest Rate: 3%
- Initiation fee: R172
- Monthly service fee: R69
FNB Short Term Loan
- Loan amount: R100 - R10 000
- Loan term: 1 - 6 months
- Monthly Interest Rate: 5%
- Initiation fee: Up to 13%
- Monthly service fee: R0
Wonga Short Term Loan
- Loan amount: R500 - R4 000
- Loan term: Up to 6 months
- Monthly Interest Rate: 6%
- Initiation fee: 13.3% - 17.2% of the loan amount
- Monthly service fee: R13.8 - R211.6
Absa Short Term Loan
- Loan amount: R1 500 - R8 000
- Loan term: 1 - 6 months
- Monthly Interest Rate: 3% - 5%
- Initiation fee: From R80 up to 10% of the loan amount
- Monthly service fee: R69
Capfin Short Term Loan
- Loan amount: R1 000 - R8 000
- Loan term: 12 months
- Monthly Interest Rate: Up to 5%
- Initiation fee: R69
- Monthly service fee: R535
Finchoice Short Term Loan
- Loan amount: R100 - R10 000
- Loan term: 1 - 3 months
- Monthly Interest Rate: n/a
- Initiation fee: n/a
- Monthly service fee: n/a
Letsatsi Finance Short Term Loan
- Loan amount: R500 - R7 000
- Loan term: 2 - 6 months
- Monthly Interest Rate: Up to 5%
- Initiation fee: n/a
- Monthly service fee: n/a
What is a Short Term Loan?
Short term loans are typically unsecured loans that you repay over a relatively brief period – usually a few months to a year. The main characteristics of these loans include:
- Loan Terms and Amounts: The terms vary from a week to 6 months, and loan amounts usually range from a hundred to eight thousand Rands, depending on the lender and your eligibility.
- Unsecured Nature: These loans are usually unsecured, meaning you don’t need to provide collateral.
- Interest Rates and Fees: Short term loans often carry higher interest rates and fees compared to long-term loans due to their short repayment period and unsecured nature.
Types of Short Term Loans in South Africa
Various types of short term loans cater to different needs. Some common types include:
- Payday Loans: These are typically small, high-interest loans to be repaid by your next payday.
- Online Short Term Loans: These loans are applied for and approved online, offering convenience and speed.
- Personal Short Term Loans: These can be used for any personal expense and provide more flexibility in repayment terms.
- Bridge Loans: These are designed to “bridge” the gap between needing funds and receiving expected income, often used in real estate transactions.
Purpose of Short Term Loans
Short term loans can be used for various purposes:
- Emergency Expenses: Unexpected costs like medical emergencies or car repairs can be covered by short term loans.
- Bridging Finance: If you’re expecting income but need immediate cash, a short term loan can “bridge” the gap.
- Small Purchases: If you need to make a small purchase that can’t wait until payday, a short term loan can be useful.
- Unexpected Costs: Any cost that you didn’t budget for can be covered by a short term loan.
How to Apply for a Short Term Loan Online in South Africa
Apply through BetterLoans to get a list of pre-approved loans from reputable lenders with only one online application. BetterLoans helps you easily compare loan offers and also saves time.
However, traditionally, obtaining a short term loan involves several steps:
- Evaluation of Financial Situation: Consider if a short term loan is the best solution for your needs and if you can afford the repayments.
- Comparison of Lenders: Lenders offer varying interest rates, fees, and loan terms. Comparing multiple lenders helps you find the best deal.
- Eligibility Requirements: Check the lender’s requirements regarding income, credit score, and other criteria.
- Application Process: Submit an application form, providing the necessary details about your income and debts. The lender will perform a credit check.
- Approval and Disbursement: If approved, you’ll need to sign a loan agreement. The lender will then disburse the funds to you.
- Repayment: You’ll start making regular repayments based on the agreed schedule.
Benefits of Short Term Loans
Short term loans offer several advantages:
- Quick Access to Funds: The fast approval and disbursement process provides quick cash flow.
- Less Stringent Eligibility Criteria: Even with a lower credit score, you may still qualify for a short term loan.
- Flexibility in Usage: You can use the loan for any personal expense, offering great flexibility.
- Shorter Repayment Period: You can clear the debt quicker than a long-term loan, which can be a psychological advantage for some.
Risks of Short Term Loans
Despite their benefits, short term loans also carry risks:
- High Interest Rates: Due to their short-term nature and risk to the lender, these loans tend to have high-interest rates.
- Risk of Debt Cycle: If not managed well, short term loans can lead to a cycle of debt, where you take out another loan to repay the current one.
- Penalties for Late or Missed Payments: Late or missed payments can result in hefty penalty charges and negatively impact your credit score.
- Impact on Credit Score: Too many short term loans can negatively affect your credit score, making it harder to get credit in the future.
Regulation of Short Term Loans in South Africa
The National Credit Regulator (NCR) regulates short-term loans in South Africa. Established under the National Credit Act of 2005, the NCR promotes a fair, transparent, and accessible credit market. It ensures that credit providers adhere to the Act’s provisions, protecting consumers from predatory lending practices and promoting responsible borrowing.
Short Term Loan Calculator
Choosing a Short Term Loan Provider
Choosing a lender requires careful consideration. Consider factors like:
- Interest Rates: Lower rates mean less cost to you.
- Fees: Be aware of any fees, including initiation, monthly, or late payment penalties.
- Loan Terms: Ensure the repayment schedule suits your financial situation.
- Customer Service: Good customer service can make the borrowing process smoother.
Always choose a lender registered with the NCR to ensure they comply with the National Credit Act.
Alternatives to Short Term Loans
Before opting for a short term loan, consider alternatives:
- Savings and Emergency Funds: It’s always best to use your savings for unexpected expenses, if possible.
- Credit Cards: Credit cards can be a cheaper alternative for small amounts if you can pay the balance in full each month.
- Overdrafts: An agreed overdraft with your bank can be a flexible solution.
- Long-term Loans: A long-term loan with a lower interest rate might be a better option for larger amounts.
Conclusion
Short term loans in South Africa can be a viable solution for managing unexpected expenses or bridging financial gaps. However, it’s essential to understand their nature, benefits, and risks. Always compare multiple lenders, check their NCR registration, and consider your repayment ability before taking a short term loan.
Frequently Asked Quetions (FAQ)
Can I get a short term loan with a bad credit score?
Yes, some lenders offer short term loans to individuals with bad credit. However, the interest rates may be higher.
How quickly can I get a short term loan?
Depending on the lender, you might get the funds within a few hours or the next business day after approval.
Can I repay my short term loan early?
Yes, most lenders allow early repayments. However, check if there are any early repayment fees.
