What is a quick online loan?
- It is typically unsecured since it should take only a matter of minutes to apply for and have credited to the customer which is not the case with secured loans which typically require a lot of paperwork
- It can typically be obtained immediately or within 3 hours of the customer having made an application
- Fast loans are also typically short-term loans since they generally carry a term of between 30 days & 6 months
- They generally offer a small amount of money - from as little as R300.00 to about R3,000.00
- They can easily be obtained online, in a bank or in an alternative credit provider's store or office
How to compare multiple quick loans?
When comparing credit products most people know that looking at a lender's interest rate is a good start but, since not all lenders make their interest rates clear and readily available this can pose quite a challenge. In addition, although most lenders make their Annual Percentage Rate (APR) available on their websites, some lenders and, particularly the smaller ones, do not.
In order to compare loans accurately it is important that you look at the APR rather than the daily or monthly interest rate. Typically the APR should include, not only the interest paid on the principal loan amount but, any fees that will be charged over the course of the loan term. This makes the APR the best tool at your disposal to compare fast loans and find one that's more affordable.
Other details to consider
In addition to the APR you may also want to consider the minimum and maximum loan amount that is available in order to meet you particular needs. While some lenders, particularly online lenders, will offer only small amounts, you can typically secure a larger personal or payday loan from a bank or large credit provider.
In addition, you may also want to check the minimum and maximum loan term since a longer loan term will offer you smaller monthly repayments while a shorter loan term will enable you to pay off your loan quickly and save in interest.
We have made it easy for South Africans to compare quick loan providers online.
The list of lenders which follows below offers you a comprehensive look at all the banks, franchise retailers and alternative credit providers that offer loans which fall into the "quick loans" category.
You can review the list, find out more about each lender, see how much they're offering, what their typical interest rate is and compare their offer to find the one that meets your needs.
Who offers quick loans in South Africa?
Luckily for South Africans there is certainly no shortage of quick cash loan providers in the country. From major banks like FNB and Nedbank to alternative credit providers like DirectAxis and Cobol - if you need money fast - there's likely someone out there willing to offer it to you.
When you need a fast loan the first provider that you should turn to is your bank - since you already have an account and therefore a relationship with them they are the most likely to offer you the money you need without requiring you to fill out paperwork or provide any additional information.
In addition your bank is also likely to offer you the lowest - and therefore the best, interest rate. If your bank has not offered you a provisional personal loan than you may want to consider an alternative online credit provider.
Important information about quick loans
While quick loans can certainly be a great help when your pay day is too far out and you need to buy groceries, fill up the petrol tank or pay your bills, they are not ideal for long term use and should only be used for emergency purposes.
Alternative options to taking out a quick loan is to use a credit card or overdraft facility which generally offers a lower interest rate if the balance is paid within the time frames set out by your provider.
The problem with these types of loans is not necessarily the interest or the fees that you have to pay but, the fact that long term or continuous use can cause a dependency that may be hard to overcome.
What do I need to apply for a quick loan?
Typically, your bank will be able to offer you a short-term loan without requiring you to fill out any paperwork. If you are registered for online banking all you have to do is log in and find the provisional loan offer link, follow the prompts and agree to the terms and conditions.
The loan will then be credited to your account in minutes. If you're applying to an alternative lender you will have to complete an online loan application and provide them with the following supporting documents:
- Your South African Identity Document
- 2 recent payslips
- 3 month bank statements
- Proof of address in the form of a utility bill
Some lenders may require that you provide them with certified copies of your ID and bank statements - a request that is usually made to first time customers who have not yet developed a relationship with the particular lender.
Concluding your loan application
Once you have provided your supporting documents and completed your application the lender will conduct a few simple checks and make you a loan offer which you will then need to accept before the money can be credited to your account.
As mentioned these loans can generally be credited within hours of having completed an application and once you're on a lenders system you may be able to obtain a second loan even quicker since your information will be stored on their system.