Short-Term Loans in South Africa: What to Know About ItOct 22, 2020
Do you need quick cash for your financial struggle, but you can’t afford to get a big loan? Don’t worry; you can always get a small one that will be helpful for you in so many ways. Despite poor credit score or piles of debts, a small loan can still help you get by during tough months. In some cases, a small loan can be better than any high-paying loan in today’s market.
Before applying, however, here are several essential points you need to know about short-term loans:
How It Works
Small loans work just like any other loans—you fill out a form, submit the necessary documents, and wait for several days to get verified. Before that, however, you will need to choose a lender. At this point, it’s essential that you choose a reputable party that can provide you with the best terms. Additionally, know that each lender has their own policy, which is why you must choose one that suits your needs. Do your homework and research properly to help you find the right lender for your loan.
Factors That Affect Loan Approval
As mentioned, small loans work like other types of loans, meaning that several factors will affect your approval rate. An important factor that lenders look into is your credit score. Another vital factor is your credit report, which is what lenders use to know how responsible you are with your finances. On the other hand, your credit score helps lenders determine if you’re a good candidate for the loan based on your financial habits and history.
It’s easy to change your credit report—all you need to do is ensure you pay your bills on time and eliminate your debts as quickly as possible. The difficulty here is your credit score; if you have a poor score, it may take some time to fix this and this can affect the amount of loan you can get.
Usually, people with poor credit scores can still get a quick loan, but it is not always the amount that they need, and the interest rate will be higher than usual. This is because some lenders have a minimum-lending rule, which means that you can’t borrow an amount lower than their standard.
Types Of Short Loans
Now that you know the various factors that can affect your application, here are two types of fast loans you can get in South Africa:
- Payday loans: This is an affordable option when you’re behind bills, you need to buy something on short notice, or if you need quick cash for something personal, which is then paid on your next paycheck. If you want to apply for this, you only need to have proof of income, and you can borrow your salary’s worth of cash.
- Bad credit loans: This type of loan is for individuals who have poor credit scores. It can also be used by people with no credit scores at all, as this can help build their credit. You can borrow a bad credit loan bigger than usual, which makes it a great option if you need a considerable amount of cash for an emergency. However, keep in mind that this option will have a higher interest rate.
If you can’t afford big loans, you can always get a short loan to help you get by during tighter months. Moreover, you won’t have too much of a problem paying off this type of loan, though you’ll have a higher interest rate, as mentioned. Ultimately, you need to find a reputable lender that offers favorable rates to what you can afford.
Are you looking for quick loans in South Africa? Then you have come to the right place! At Hoopla Loans, we help hundreds of people every day to get their loans approved, and we can also help you. Get in touch with us today to secure a loan!