3 Factors You Must Consider Before Applying for a Payday Loan
November 04, 2020
Unexpected emergencies happen in life, and some of them can leave you financially strained. For instance, an accident may occur and force you to pay thousands in medical bills and other costs, especially if you are not adequately insured. Fortunately, there is a way out of this type of situation, and that is with loans.
More specifically, payday loans are loans you can use to pay for surprise costs. As the name implies, these loans have a term of about thirty days, which is generally the same timeframe you receive your salary. The most significant advantage of these loans is that they can be processed relatively quickly, allowing you to get your money in as quickly as a day.
That said, if you are interested in getting payday loans, here are the considerations you will need to make.
1. The loan requirement
The first thing you need to consider is whether you are eligible for a payday loan. Requirements are usually the same for all payday loans and are as follows:
- Must be over the age of 18
- Must be in a permanent employment status
- Must be a citizen and resident of South Africa
- Must allow for a credit check
- Must not be under debt review
- Must have an income of at least R5,000
2. The fees and rates
Most, if not all, lenders that offer payday loans will require you to pay for their service fees and sometimes initiation fees as well. These will generally be included in the total amount, meaning that the final amount you will have to pay will include those fees.
The interest rates of payday loans are usually a lot higher than typical loans. However, since they have such short terms, the interest may not be as much as you think. That said, expect the interest rates to fall anywhere between three to five percent, but this will depend on the lender.
3. The lender
One important consideration you must make is the lender. That is because not all lenders will genuinely want to help you. Instead, they might only be there to milk you of your money. It is a sad reality that we all live in, so always be wary of the lenders you work with, especially when applying for online payday loans. Perform plenty of background checks if possible, and make sure you are only working with trustworthy lenders that can give you the money you need without unnecessary trouble.
Conclusion
Although payday loans are quite accessible, you should do your due diligence when applying for one. If you do not need one, consider looking for funds elsewhere because they are quite expensive to pay back.
That said, if you need a payday loan for any reason, take the time to look for trustworthy lenders that offer you exactly what you need. That way, you will be able to quickly access the money you need and avoid facing issues along the way that can lead you to even more financial trouble.
Hoopla Loans is one of the fastest growing online brokers in South Africa, offering easy-to-access loans for anyone in need of quick cash. If you are looking for the best payday loans in South Africa, get yours from us today!