The harsh economic environment in South Africa is pushing many people towards finding alternative solutions to financial challenges they may be facing. The micro lending industry in South Africa is growing at a rapid pace. More people are relying on payday loans to help them meet their short term finance needs.
Tell me more about payday loans?
A fairly new concept in South Africa, these are short term loans, usually repayable within 30 days. They are generally for amounts of less than R2500 and are approved very quickly.
Compared to loans from traditional lending institutions such as banks, payday loans are becoming more popular. Banks usually have more stringent qualifying criteria.
These loans are unsecured, so there is no collateral required. Interest charged can be quite pricey however, mainly owing to the convenience provided by micro lenders.
In South Africa, there are numerous micro lending institutions that specialise in providing payday loans.
These are some of the best payday loans in South Africa:
When Wonga entered the South African market it transformed the local industry. New clients are offered finance up to R2500 while existing clients may qualify for amounts of up to R8000. Clients have up to 30 days to repay the loan while turnaround rates are quick, with pay-outs within 24 hours. The application process is simple, paperless and can be completed online. Wonga has become more popular and continues to differentiate its services, such as the mobile app that was launched to make it easier to access the loan.
Get Bucks is another leader in the payday loan market. This institution offers first-time loan applicants a higher amount of R4000 while existing clients may qualify for up to R8000 in finance. An n added advantage offered by get bucks is an extended repayment period of up to 45 days, compared to the traditional 30 days usually offered by competitors.
As the first online payday loan provider to launch locally, Boodle prides itself on providing services designed to cater to South Africans. When applying, individuals can select any of the 11 official languages to fill in the form. Approved individuals are given 32 days maximum to repay, while loans are paid out within 24 or 48 hours.