4 Advantages of Payday Loans in South Africa – What to Know
April 02, 2020If you’re short in cash and your payday is still a few days (or weeks) away, you can get a payday loan. A payday loan is for individuals who need fast cash that they will pay back on the next payday.
A payday loan is an unsecured loan that is designed to provide quick access to cash when you need it the most. This type of loan is usually repaid after a week or two.
The Cost of Payday Loans
Fats loans usually have higher interest rates than other types of loans. In South Africa, borrowers can be charged up to 5 per cent interest per month. There are also administration fees that could cost up to R400.
Advantages of Payday Loan
Easy to Access
The main advantage of a payday loan is that it’s easy to access. You can find lenders online that will help you acquire quick cash. Furthermore, some lenders may grant the loan within 24 hours. That’s how fast it is! You may also find lenders that are available to cater to your needs on all days of the week at any time. That proves to be a huge advantage over other traditional loans, especially in the case of emergencies.
Fewer Requirements
Other types of loans will require a lot of documents from you, and the processing time may take longer than usual. To add to that, lenders will also conduct a credit check. Payday loans, on the other hand, will only require a few documents from you, such as proof of your employment and a checking account. Your credit score will not matter so much when applying for a fast loan.
No Credit Checks
As mentioned, payday loan lenders don’t have to conduct a credit check to grant you a quick cash loan. Therefore, if you have bad credit, you can still take out a loan should you get approved by the lender. Furthermore, credit checks affect credit history, but with payday loans, rest assured that your credit will not be affected with a credit check.
Unsecured Loan
Payday loans are unsecured, which means you don’t need to put up collateral in exchange for the money you borrowed. That said, if you don’t pay your loan, the lender won’t be able to seize any of your assets. However, nonpayment is when your credit score will get affected.
Conclusion
A payday loan is a convenient way to gain access to funds right away. All you need to do is submit a few requirements and have a check ready for the lender. The lender will cash the amount on your agreed due date. In the case that you can’t pay on the due date, you can have it extended, but it will come with additional fees.
There are plenty of lenders that can provide you with a fast cash loan. However, you need to stick to a reputable one that will give you rates that will suit your needs. Make sure to do your research well when looking for a lender.
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