We often find ourselves in a bit of a tight financial spot with no idea of how we’re going to overcome such a financial predicament. We are faced with so many unpredictable things in life and even when earning a decent salary there is always some emergency that is not budgeted for and needs immediate financial attention. Applying for an online loan is fast becoming the financial salvation coming to the rescue of many a South African citizen and because we are one of the countries with the lowest interest rates on short-term financing, pay-day loans are fast becoming the future of the South African microfinance industry.
How does an online pay-day loan work?
You would need to have access to the internet to apply for an online loan and applying is fairly easy. Financial service providers such as Wonga.com would normally have a scale where you are able to select how much cash it is that you want over what period of time – usually until your next pay date. These type of loans are usually taken out for small amounts, generally up to R4 000. If after you have gone through the application and qualifying process and you are successful, the loan pays out in ± 24 hours. Repayment will then be arranged for the next date that you get paid.
What do you need to qualify for a pay-day loan?
When doing the online application, there are certain criteria that you have to meet in order to qualify for a loan.
- Barcoded South African ID
- You have to be employed and earn an income.
- Latest payslip (and a 3 month banking statement is optional)
- You must have an active bank account to which a debit order will be loaded and to which the money would be deposited.
- Your minimum monthly salary needs to be a certain amount for you to qualify.
- Some institutions offering these loans doesn’t require credit checks and people who are blacklisted are welcome to apply
And should you not be successful in qualifying for a pay-day loan the reason could be that:
- You have applied for Debt Counselling (and is currently under Debt Review)
- You are currently under administration or sequestration and your assets are being possessed.
What are the benefits of a pay-day loan?
- It is effortless to apply for the cash and it is available instantly.
- In most cases you don’t have to submit any documents.
- It is affordable in the sense that it is a small amount and will be decuted from your next pay check.
- Interest rates are minimal.
- You can use the money to pay school fees, have work done on your car or home renovations.
How will I pay the money back?
Easy. When you sign up for and go through the application process you will be asked to fill in your banking details – the bank to which you receive your salary and then on your pay-date the amount owed will be deducted from your account.
Taking out a loan has never been this easy. When you need money urgently and have nowhere to turn to, help is at the click of a button so do consider an online pay-day loan. It is fast, easy and very convenient.
- Enzo Leigh Botes