4 Reasons Why Payday Loans Are Becoming Popular in South Africa – What to Know

Sep 11, 2019

 

Many things are now possible with the help of the internet. Nowadays, that includes applying for and obtaining payday loans. Payday loans are a quick solution for those in urgent need of money. If you have a regular job or business and you need instant money for your needs, payday loans provide the stop-gap solution you need. If you’re wondering why online payday loans are becoming popular in South Africa, read on to know more!

 

They have no exhaustive credit checks, collaterals, and credit score discrimination

South Africans with a poor credit score are disadvantaged from accessing credit from traditional lenders, such as banks. They would have to present their bills, receipts of other loan payments, bank account papers, and other documents the lender may demand. You have to prove everything to the lender that you are not a credit risk. With payday loans, you only need to verify your capacity to pay by showing that you have a regular job or own a business. Those who plan to start a business with only small capital may try applying for payday loans for instant access to credit. 

Go online and type, “I need instant cash now payday loan South Africa,” and you will find an endless list of options that can help until your next payday. Payday lenders don’t care if you have bad credit. However, you have to repay them before the due date, which is usually two to four weeks after your application. In other types of payday loans, your “collateral” would be your monthly paycheck. 

 

They are convenient

With an online payday loan application, you don’t have to line up anywhere or travel to the lender’s physical office. All you will have to do is to fill out an online form, supply your bank information, and upload pictures of proof of your employment. You can also repay the money by merely depositing the payment to the lender’s bank account and sending the lender a picture of a validated deposit slip as proof of repayment. There’s also the choice of applying for a type of payday loan system that automatically takes a cut of your monthly income from your bank account to ensure that you pay on time without accumulating higher interest and surcharge.

 

They are fast yet secure

If you have no problems with your qualification, it takes only several minutes to get your loan approved, and the money will be deposited into your bank account the following day. These lenders use cloud technology, such as is used in big banks, making it very difficult for hackers to steal sensitive financial and personal information.

 

They are easy to find in South Africa

You can type in Google, “cheap online loans in South Africa,” and find a lender that’s nearest to your place of residence or business. You can even compare interest rates between lenders to find the most money you can borrow for the most reasonable interest rate. At the same time, you can use the internet to find lenders with flexible repayment terms. Because the competition in the microfinancing business is large, expect that various lenders would compete to provide you with the most reasonable credit terms and best quality service.

 

Conclusion

Now you can see why payday loans are becoming popular in South Africa. They don’t do exhaustive credit checks, are convenient and secure and easy to find.

If you’re looking for a payday loan in South Africa, get in touch with us for a personal loan today! We’re happy to help you with your situation.