Payday Loans South Africa – Online Payday Loans
Payday loans are part of the most thriving financial instruments for everyday people. These loans are renowned for their fast payouts and easy accessibility.
With so many companies offering access to payday loans, making a choice can be quite challenging. In this post, we’ll break down everything you need to know about payday loans and which companies offer the best loans and terms.
What Are Payday Loans South Africa?
Payday loans have become incredibly popular in recent times. Interestingly, however, there doesn’t seem to be a specific definition for them.
Despite the lack of a specific definition, payday loans tend to have specific characteristics. For one, they are short-term loan facilities – most payday loans tend to have a value of R500 or less. Payday loans are also quite costly. Depending on your income, interest rates can be quite high for these loans.
Payday loans are selectively available, too. Depending on your state law, they could be available online or through physical lending offices and outlets.
Another characteristic of payday loans is that you will usually repay them in single payments. Unlike traditional loans where you can get a payment schedule, payday loans are usually remitted at once. This could be at a set date or when the borrower gets income through any additional channels – Social Security, pension allowances, unemployment benefits, etc. For most payday loans, the due date ranges between two to four weeks from when the loan was administered
Many states set limits on payday loans, hence their propensity to come in small amounts. In most states. You’ll find that the limit for these loans is R500. Most payday lenders don’t generally consider your ability to repay their loans while also handling some other financial commitments. As long as you’ve been given the money, you’re responsible for meeting the deadline and remitting your due balance in full.
There are several other features of payday loans, although they could vary. For instance, some loans allow borrowers to “roll over” their loans when payment is due. So, the lender could extend the loan tenure.
Common Uses of Payday Loans South Africa
Currently, payday loans can be used for different things. Some of the most common uses of the loans include:
Many people use payday loans to cancel other debts that they may owe. These include loans from other companies, credit card debt, and much more. It could make sense to take out a payday loan, especially if the interest on the loan is less than the borrower’s other debts.
Holiday seasons are usually quite busy for payday loan services. Parents want to get their hands on some money so they can foot bills and get gifts for their kids, and people could get payday loans to offset some of their holiday expenses. The point is that they hope to pay the loans back when the holiday period passes.
Fixing Bad Credit
Traditional loan options like banks and other financial institutions will most likely not give loans to people with bad credit. On the other hand, most payday loan companies have no problem if you have a bad credit score. In fact, some payday loan companies actually encourage people with bad credit to still submit loan applications. As long as you can afford to pay, you can get a loan.
Interestingly, some people have been known to use payday loans to fix their credit ratings. They simply use the loans to pay off debts that they owe, thus fixing their credit and improving their standing with banks and other traditional financial institutions.
No one ever wants to fall behind on their mortgage payments. When you consistently deliver late payments for your mortgage, you run the risk of the mortgage company taking some form of action against you.
While you could discuss with your mortgage lender to request a suitable payment plan, you could simply take a payday loan to make your payments and repay the loan at a later date.
Payday loans are renowned for their speed of disbursing funds. This is a sharp contrast to banks and other institutions, which will need some time to perform due diligence before you can get your money. Instead of dealing with the red tape, a payday loan presents a much more suitable option – especially if you’re in an emergency.
How To Qualify For Payday Loans South Africa
Payday loans are known for being quicker and more accessible to people. According to documentation from the Consumer Financial Protection Bureau (CFPB), a borrower will simply need to meet these criteria to qualify for payday loans:
- They must be at least 18 years old
- They need a government-issued means of identification
- They need to have a source of income – which they will show with proof
- They should have an active checking account
Once you meet these criteria, you should be able to get a payday loan in minutes.
In July 2020, the CFPB also issued a ruling that removed a three-year-old requirement for payday lenders to examine borrowers’ ability to repay loans. This rule means that there are little to no credit check requirements for payday loan companies. In some states, even unemployed people can have access to payday loans. As long as there is an ability to pay, they can access the funds.
This made it even easier for people to access payday loans – even those with bad credit.
Online Payday Loans South Africa
When it comes to payday loans South Africa, Viva Payday Loans is perhaps the best company to work with. The company has an enviable track record of consistency, and they’re especially renowned for their speed.
It is worth noting that Viva Payday Loans doesn’t explicitly give borrowers money. Instead, the company connects borrowers with lenders. Viva Payday Loans offers different types of loans, ranging from R100 loans and bad credit loans to cash advances and installment loans. Whatever you need money for, rest assured that Viva Payday Loans is there to help you out.
With Viva Payday Loans, you will be matched with a company to offer you the cash you need in less than 15 minutes. The platform touts itself based on its speed, and its network of lenders is expansive enough to help you get the money you need.
|Annual Percentage Rate (APR)||Loan Amount Range||Loan Term Range||Star Rating|
|5.99% to 35.99%||R100 to R5,000||3 to 6 months||5 stars|
What We Like
- Viva Payday Loans is very fast
- Viva Payday Loans is easy to use
- You get flexible interest rates
What We Dislike
- The loan tenures on Viva Payday Loans might not be so flexible
- Viva Payday Loans isn’t available in some states (Indiana, New York, Montana, etc.)
Viva Payday Loans has proved to be the best intermediary between borrowers and lenders in South Africa. The company’s job is to connect both parties, and it offers its services quite effectively. While it is not available in several states across the country, it has definitely gotten a lot of praise from existing customers.
Features of Payday Loans
Payday loans are known to be very fast. The payday loans offer guaranteed cash in minutes. This is one of the primary benefits of payday loans – if you have a financial emergency and need to get your hands on some cash, payday loans could be the perfect way for you to go.
The speed of payday loans is a stark contrast with other credit facilities, where lenders will usually need to conduct due diligence before you get your money.
The payment tenure for payday loans usually ranges between two to four weeks. Most payday loans allow borrowers to get money for up to a month, after which they will need to pay back. But, keep in mind that some payday loan companies could offer credit facilities that run for up to six months.
Given that tenures tend to vary, it’s important to know the applicable tenure that a payday loan company is offering – as well as the available options for rolling over your payment.
Payday loans have varying interest rates based on the companies offering the loans. However, many of them tend to charge between R10 and R20 for every R100 you borrow. The rates are calculated as an annual percentage rate (APR), just like other types of loans – mortgages, credit cards, etc.
Given this calculation, you could end up paying as high as 500% for some payday loans.
Payday loans are known to have few barriers to entry. Unemployed people can apply for loans, and there are little to no checks on credit, and you can get your money fast.
Payday Loans South Africa – The Hoops & Loops
- There are little to no barriers to entry
- You can get your money fast
- Quick application process
- The interest rates might be a little high
- Loan tenures might not be so reasonable
How to Get Payday Loans South Africa
If you’re looking to get your hands on payday loans, the process is quite simple. We’ll quickly run through how to get started below:
1. Visit Viva Payday Loans
You simply need to get access to the Viva Payday Loans website and enter your information. The service is reliable and easy to use, and you can enter your details directly through the home page.
2. Complete The Application Form
The application form for Viva Payday Loans is directly after the home page. You’ll need to enter how much money you’re looking to borrow and your Email address.
From there, enter the remaining relevant details. Viva Payday Loans will get personal information, employment details, and your address for due diligence purposes.
3. Get Your Decision
Once your information has been entered, Viva Payday Loans will send it out to one of its partner loan providers. It might take a few minutes to get your decision, but it eventually comes.
4. Receive Your Loan
Once a payday lender approves your loan, the money is immediately sent to your bank account. You will need to give your bank details to the service while applying, so you don’t need to do that a second time.
Usually, the loan process on Viva Payday Loans takes about 15 minutes.
Frequently Asked Questions
What can stop me from getting payday loans?
Generally, irregularities in your filing could reduce your chances of getting approval. Besides that, the barriers of entry for payday loans are pretty low.
Will a payday loan affect my credit score?
No, it won’t. Payday loans are usually not reported to the major credit reporting agencies, so they won’t have any effect on your credit score.
What happens if I don’t repay my payday loan?
Ideally, the payday lender will transfer your account to a collection agency. This could have bad effects on your credit score, and you don’t want that for sure.
What is the interest rate on payday loans?
This varies between lenders. But, you should generally see interest rates ranging between 5% and 40% APR.
How long does it take for a payday loan request to be approved?
If everything with your filing is complete, you should get a payday loan in minutes. Payday loans are renowned for being very fast.