Are you desperate for urgent loans for bad credit, 6 months no credit check loans guaranteed approval and monthly payments in South Africa?
Do you need the list of private lenders for high-risk personal loans in South Africa?
If YES, this article is only what you need to read today.
There are various types of loans available in South Africa to apply for, including personal loans, mortgages, business loans, short-term loans, and student loans.
Personal loans are typically used for expenses such as home renovations, medical emergencies, or debt consolidation.
Mortgages are used for the purchase of a home or property.
Business loans are used to finance the operations or expansion of a business.
Student loans are used to help cover the cost of higher education.
To apply for a loan in South Africa, you typically need to meet certain eligibility requirements, such as having a good credit score and a stable income.
You may also need to provide collateral, such as a piece of property or a vehicle, to secure the loan.
It is important to carefully consider the terms of a loan, including the interest rate, repayment schedule, and any fees, before accepting it.
It may also be helpful and compare offers from different loan apps and companies to find the best loan for your needs.
Is a Loan an Asset or Liability?
A loan is generally considered a liability because it is a debt that must be repaid.
When you take out a loan, you are borrowing money from a lender and agreeing to pay it back with interest over a specified period.
The lender, in turn, has a claim on your assets as collateral, which means that if you default on the loan, the lender can seize those assets to recover the money it is owed.
However, there are some circumstances in which a loan can be considered an asset.
For example, if you use a loan to purchase an investment, such as real estate or a business, the loan can be considered an asset because it helps you generate income.
Similarly, if you use a loan to finance the expansion of a business, the increased revenue and profits resulting from the expansion may be considered an asset.
Overall, it is important to carefully consider the terms of a loan and how it will affect your financial position before accepting it.
Loan Application Requirements in South Africa
These requirements are needed when applying for a loan in South Africa.
- You must be 18 years old and older.
- You must have a clear copy of your South African ID.
- You must earn a minimum of R2000 a month.
- You must hold a bank account.
- You will be required to provide proof of income documentation.
- A recent document confirming your residential address.
Steps to Applying for Loan Online in South Africa
To apply for a loan in South Africa, follow these steps:
1. Determine your Loan Needs
Before applying for a loan, it is important to determine the amount of money you need and the purpose of the loan.
This will help you choose the right lender and loan product.
2. Research Loan Apps and Companies
There are several online loan apps and companies, banks and financial institutions in South Africa that offer loan products.
Research their loan offerings and requirements to ensure you meet their eligibility criteria.
It is also important to compare different lenders to find the best loan terms and rates.
3. Gather Necessary Documents
Most lenders will require you to provide certain documents like proof of income, identification, and collateral (if required) to apply for a loan.
4. Fill Out the Loan Application Form
This can be done online or in person at the lender’s office.
You will need to provide information about your personal and financial details, as well as your loan purpose and repayment plan.
5. Wait for a Decision
After submitting your application, the lender will review it and decide on whether to approve or deny your loan.
If your loan is approved, the lender will provide you with the terms and conditions of the loan.
6. Accept or Decline the Loan
Once you receive the loan offer, you can choose to accept or decline it.
If you accept the loan, you will need to sign a loan agreement and begin making payments according to the terms of the agreement.
How does a Personal Loan work?
- With a personal loan, you can borrow between R2000 and R250 000.
- Loans are repaid over a period between 3 and 72 months.
- Interest rates are fixed. This way you know what your installment will be for the duration of the repayment period irrespective of any changes in the repurchase rate set by the Reserve Bank.
How much does a Personal Loan cost?
Your loan installment consists of the following costs:
- Interest – your interest rate will depend on your affordability and personal credit profile.
- Monthly service fee – a standard monthly service fee of R60 (excluding VAT) is applied to all loan accounts.
- Credit life premium – a credit life premium is charged monthly (for loan terms of 12 months and longer). This premium is based on the Rand value of your loan at the time of application.
- Initiation fee – a once-off initiation fee is applied to new loans.
Top 8 Apps and Websites to Get Personal Loans Online in South Africa
1. Lime
Lime is a financial technology company that provides digital solutions to change how people borrow money across South Africa.
Utilizing advanced algorithms and machine learning capabilities, they can offer a platform for a customized approach towards lending to help unlock the purchasing power of millions, 24/7.
How to Apply
- Visit site, click “Apply now” enter your personal information and contact details (mobile phone and email).
- Enter additional information to determine your tariff rate.
- Fill in your bank account details and provide your latest 3 months’ bank statements.
- Confirm your income, choose the amount and term of the loan.
- Read and sign the agreement by clicking the “I accept” button, and the money will be paid to your bank account!
Why should I choose Lime24?
- You can get money sent to your bank account as soon as your application is approved.
- Application is easy. To get a loan, you only need to provide basic information.
- You get discounts on interest if you repay your loan on time.
What do I need to get a loan?
- SA ID number.
- Your cellphone number.
- Bank account details
- Latest 3 months bank statements showing your income.
You can get the money paid to your bank account as soon as your application is approved.
To repay your loan, go to your profile, sign in using the phone number and password provided during registration, and click “Repay”.
You can repay the loan at any time without any penalties or restrictions.
2. Wonga Loans
Wonga differs from other online lenders because their sophisticated risk and decision technology means the application and approval process takes literally minutes.
It is the first company in the world to fully automate the lending process and can make responsible decisions around the clock.
There’s no paperwork, no need to meet with a bank manager and no sitting for hours on hold on the phone – our entire service is online and in real time.
Applicants can choose exactly how much cash they want to borrow and for how many days they need it.
Customers aren’t forced to borrow a fixed sum they might not need or pay interest for any longer than necessary.
Wonga offers short-term loans for up to 3 months for new customers, and up to 6 months for existing customers.
New customers can apply for up to R4000 with 3 months to repay.
Existing customers up to R8000 with up to 6 months to repay.
Wonga offers instant loan approval online, 24/7.
No matter what day or hour you apply for a Wonga loan, if your loan is approved instantly, you’ll be paid cash and depending on how quickly your bank moves, it could be in your account within the hour.
The only way costs will mount beyond the initial calculation is if you aren’t able to make the repayment on the agreed repayment date.
3. Atlas Finance
Looking for an online cash loan… either a maximum affordable loan (where you apply for the largest amount possible relative to your salary) or a specific affordable loan (where you apply for an amount that you need).
Whatever your financial needs, Atlas Finance offers you flexible short-term loans when you need a helping hand.
You will always know upfront what the cost of your cash loan will be, including the annual percentage rate of between 36% to 60%, so you can be sure of the loan cost before applying.
Always consider your ability to repay your short-term loan before applying as non-payment will have serious consequences.
This easy online service is available in a few clicks – don’t wait in queues, fill out paperwork or sit for hours on the phone.
With flexibility of choice when it comes to cash loans, applicants can borrow exactly how much they need and the time they need before they can pay it back.
Short Term Loans
- Borrow from R200 to R8000 with a 61-to-180-day repayment.
- Interest from 36% APR* to maximum 60% APR*
- Customer protection insurance for peace of mind.
Fee and Interest Breakdown Summary
- Service fee R60.00 per month plus 15% VAT.
- Initiation fee 15% on first R1000.00, +10% on any value above R1000.00, to a max of R1000.00, plus 15% VAT.
- Credit life – 1.1% of total loan amount.
- Interest rate 0.17% per day up to a max 5% per month.
- APR* ranges from 36% APR* to maximum 60% APR*
Representative Example
- Borrow R2,500 for 90 days.
- Interest and Fees R945.46
- One repayment of R3,445.46
- Representative 60% APR*
How to Apply?
- Fill in the application form.
- Submit proof of ID / passport, latest payslip and 3 months bank statement.
- Once the loan is approved, the money will be paid directly to you.
4. Capfin
Capfin offer affordable and easy to manage loans of up to R50 000 with 6- or 12-month repayment terms.
Transparent loan products and services ensure that you get what you pay for with no hidden costs.
Why Choose Capfin
- An easy application processes.
- No hidden fees and interest rates.
- We can obtain bank statements directly from your bank.
- You have 24/7 access to your Capfin loan account.
- Loan balance is write-off in the event of our client’s death.
- You get to pay for unexpected expenses.
- Available at any PEP or Ackermans store nationwide.
The Capfin death benefit is free and available to new or existing customers.
To claim, they will need these documents of the Capfin account holder:
- Copy of the deceased Capfin Account Holder’s ID.
- A clear, certified copy of the death certificate.
- A clear, certified copy of the master’s letters of executorship (if applicable).
Submit all documentation via email to legal@capfin.co.za or info@capfin.co.za.
Once documents are received, Capfin will independently verify the deceased status.
5. Sanlam Personal Loans
Get a loan of up to R300 000 at a fixed interest rate and earn up to 10% of your loan amount in Wealth Bonus, Sanlam’s monetary reward for qualifying products.
Whether you need money for unexpected expenses, a medical emergency, or to fund a specific project, Sanlam can offer you a fixed interest rate personal loan according to your needs and circumstances.
How to Streamline Your Application
To streamline your application, upload these documents via the online application portal:
- A clear copy of your South African ID.
- A recent document confirming your residential address.
- Up to 3 months’ recent, original bank-generated PDF statements (available via e-mail from your bank or from your banking app) or pay slips, as proof of income.
How Sanlam Personal Loans Work
- You can apply for any amount, from R5 000 to R300 000 in increments of R1 000.
- You can tailor your repayment term to suit your budget (from 12 months to 6 years).
- Repayments 12 months to six years.
- Sanlam will always take your current financial circumstances into consideration and never lend you more than you can comfortably afford to repay.
6. RCS Loan
Whether you’re looking for extra cash for car repairs, your studies, or even a wedding, trust RCS to make it possible.
An RCS Loan gives you access to:
- A cash loan from R2 000 up to R250 000.
- Fast, paperless application process.
- Decision in seconds.
- Cash in your account within 24 hours.
- Flexible repayment options; choose from 12 to 60 months.
- Free monthly statement via email or SMS.
- Customer Protection Insurance.
- Interest from as low as 15%.
An illustrative example of a loan at an interest rate of 28.00% would be: Loan amount of R10 000 borrowed for 24 months.
Annual Interest Rate: 28.00%.
Initiation fee: R1207.
Monthly service fee: R69
Total Amount payable: R17 116,24.
Monthly instalment amount: R713.
The conditions of getting an RCS Loan:
- You must be 18 years old and older.
- You must have a South African ID.
- You must earn a minimum of R2000 a month.
- You must hold a bank account.
- You will be required to provide proof of income documentation.
To process your application, all that is needed is:
- Your South African ID number.
- Your bank details – So a Debit Order can be set up as your payment method.
7. Old Mutual Personal Loan
Life often happens without warning and when you’re least prepared for it. But with a personal loan from Old Mutual, you can pay for an emergency expense, seize that once-in-a-lifetime opportunity, or turn a house into a home.
Old Mutual offers loans up to R250 000 with repayment terms of 3 to 72 months.
All loan applications are subject to an assessment to determine your affordability.
What do I need to apply for a personal loan?
Besides being at least 18 years old and a South African citizen, you will need these to apply.
- ID document.
- 3 months bank statements not older than seven days.
- Latest pay slip.
8. WesBank CashPower Personal Loans
Apply for a WesBank CashPower Personal Loan from R5000 up to R300 000, with rates from as low as 17.25%.
What you need to apply:
- Monthly income of at least R5 000.
- Up to 3 months’ recent, original bank-generated PDF statements (available via e-mail from your bank or from your banking app) or payslips, as proof of income.
- A clear copy of your ID document.
- Proof of address.
8 Best Apps and Websites for Instant Loans in South Africa
- Lime
- Wonga
- Atlas Finance
- Capfin
- Sanlam
- RCS
- Old Mutual
- WesBank
