It may seem useless to compare fast loans given that you need the cash urgently, but the reality is that this can save you a lot of money and trouble as well. Besides, the comparison is now much easier and more effective than ever before. You can readily compare products from a large number of lenders online. You can get the job done in minutes. The question is how to make an effective comparison.
You need to compare as many fast loans as possible. Consider the products of big lenders like Nedbank, Absa Bank and Standard Bank and those of the smaller local and national ones as well.
The interest rate is the primary comparison factor.
The South African law requires lenders to disclose the interest rate which they charge. The lower this interest rate is the better.
You should also compare loan fees & interest rates
Usually, the annual fees are compounded to the interest rate and the product is called annual percentage rate (APR). Again, the lower the APR is the more favourable the deal is.
The closing fees should also be compared. These are the initial fees that you pay in order to get the loan. Again, the product with the lowest fees wins.
The total cost of the loan is the principal plus the compounded interest amount. It goes without saying that the smaller the sum is the cheaper the product is.
The term is also important. The shorter it is the less expensive the loan is. Hence, you will save if you are able to repay your debt more quickly.
Get organised when comparing fast loans. That way, you will get cash super quickly as well as cheaply.