Instant loans in South Africa
Instant loans are available to assist you when you just need extra cash, are dealing with an emergency or simply want to make an immediate purchase.
Anything can happen in life. You cannot be prepared for everything, and that's where a short-term loan can be used to help you resolve some cash emergencies.
You can deal with cash emergencies with the help of an emergency fund, if you have one. It is a fairly simple yet highly effective solution but sadly, most South Africans simply do not have one.
Why & How to Build an Emergency Fund?
There are all kinds of financial emergencies that any person in South Africa can face from those that are living off of minimum wage to those that are earning tens of thousands of Rands. The list of the most common ones include, poor money management, a complete or partial loss of income, medical bills, an excess insurance payment and urgent car or home repairs.
What to be careful of with instant loans?
If you are forced to take out a quick loan in such a situation, you will certainly not have the time or desire to negotiate when it comes to interest rate and fees. As a result, you can get into more serious financial trouble.
How much should you keep for unexpected cash emergencies?
The majority of experts recommend that your fund should be equal to your living expenses for three to six months. When you determine the actual amount of money to keep for emergencies, you have to take into account the size of your family and whether you have kids, your debt and the insurance policies which you have.
Experts suggest that you calculate the size of the emergency fund based on your living expenses because the most common emergency is considered to be unexpected loss of income. In case you lose your job, you will still have to pay all the bills.
If you are prepared for the biggest emergency, such as a loss of income, you will be fully ready to deal with smaller ones such as a broken home appliance.
No savings, now what?
If you have no savings which to transfer to your emergency fund straight away, you should not worry.
You will get a long way if you start small. You can determine a fixed amount of money to set aside every month depending on your income and expenses. You can also plan to allocate bonuses and other extra payments to your fund.
It will take time to build a fund equal to your expenses for three to six months, but if you set small milestones, you will be on the right track.
The first step which you need to take is to open a savings account in your bank, if you do not have one at present. Next you have to start depositing the sum which you have decided to set aside every month. Generally, you can make weekly or bi-weekly payments as well if this will be easier and more convenient for you. The important thing is to be disciplined and to turn the depositing of the fixed sum into a habit.
Once you are comfortable with the initial amount of money which you have decided to save, you can increase it. If you start off with R100 per month and you no longer miss this amount of cash in your wallet, you can increase the size of the sum which you set aside to R150. After a while, you can move on to R200 and so on.
Where to keep your emergency fund?
A savings account is the best option because it is cheap and allows you to withdraw cash quickly and without hassle. As you accumulate more savings, you can consider an account which brings higher interest so that you can make extra money.
Other options include certificates of deposit and money market accounts. The former are quite secure, but there are penalties for withdrawals while the latter give you the opportunity to earn more but at a higher risk of loss.
The best thing to do is to keep your emergency fund fairly liquid. Basically, you should be able to withdraw the required cash when you need it. Similarly, you would not want to use your savings to invest in high-risk high-return financial instruments such as stocks and mutual funds.
Keep your savings safe for an emergency and set aside money for investing in another account.
Instant loans from the Banks
Your bank will generally have a reserved personal loan offer ready for you, if you have a good credit profile and no outstanding debt with them. If you're in need of a quick cash boost you can use this facility since it will not only be the most affordable option but, since you are pre-approved you will not have to fill in any forms or speak to the bank.
Instant loans for people with Bad credit
If you have missed payments on accounts and loans and your creditors have reported you to the credit bureaus you will not be able to access any further credit from traditional sources. This is when you may want to apply for a personal loan for bad credit with an alternative lender. These lenders are smaller, independently owned and run credit providers that specialise in offering financial solution to people who cannot access credit from traditional sources.
How to apply for an instant loan?
You can always walk into a bank or storefront lender and apply for a loan. Many people still choose to go into the bank and do things this way.
Apply for a loan online
To apply for a loan online you must navigate to the lender's website using the links we have provided and make you application. If you're using a phone you can also download a lending application.
Lending apps in South Africa
These days most people use a laptop or Smartphone to apply for credit. You can download a banking app or the official application of any of your preferred short term lenders or a payday loan provider. Once you have the application and have created a profile, filled in you details and uploaded your supporting documents you will be able to access instant cash at the tap of finger.