Our Simple Guide on Loans Direct – What to Know

November 14, 2019

Whether it’s a health emergency, unexpected home repairs, or upcoming monthly dues, we’ve all been there. You need money, and you need it now. For most South Africans, taking out a loan seems to be the best option under these dire circumstances. 

Loans direct is a widely popular type of loan anyone that makes borrowing money convenient and efficient. What are its benefits, and is there a catch? In this article, we will dish out the real scoop on loans direct.

Are loans direct for me?

Let’s get things clear: loans direct is not a specific product. It’s another term to describe payday loans or short-term loans from a direct lender. When choosing which type of loan to avail, you must identify your goal. Do you want to get the money as fast as possible, or do you want to get a loan with the least amount of interest?

Borrowing from a direct lender has its advantages. It makes the application process incredibly easy. The approval process is even faster! Once approved, you can get your funds within an hour. Loans direct come with a process that is incredibly smooth and hassle-free for South Africans, unlike long-term bank loans. 

With loans direct, you don’t have to offer the lender any collateral. It also will not judge you solely on your credit report. As long as you pass the application criteria, you can get your loan approved at no extra cost.

Understanding interest rates

Short-term loans are deemed as quick fixes. They provide the best solution when you are short of money and you need something fast to make ends meet. The downside may be the high-interest rates and the amount of time you need to pay it back. Typically, South Africans are expected to begin repaying their loans between 15 to 90 days after it concludes.

In some instances, it is better to consider government loans before you turn to private loans. Government loans tend to have more benefits, such as having fixed and low-interest rates. However, do take into consideration the amount of time it takes the government to release your funds. One more thing to note is that South African government loans don’t always cover the full price you need, such as the whole amount of your college tuition fee. As such, most students turn to other financial aids such as grant money and scholarships.

The amount of money you can borrow and the interest rate at which you will be charged vary between borrowers. It all depends on their financial circumstances and needs. Payday loans or loans direct may seem the faster solution but bear in mind that they do come with risks as well. Their high-interest rates make it difficult for borrowers to pay back the amount. That said, South Africans who apply for such loans must require money under urgent circumstances. Considering the ease of application and approval times, loans direct could be the savior of your situation.

If you want to learn more about direct lender payday loans in South Africa, get in touch with Hoopla Loans today! Our team can explain the process better to you so you can decide on which type of loan would best suit your needs.