Choose the best R1000 payday loan in South Africa
For a cash loan, R1000 is a relatively small amount which is why it is considered to be only a short term solution. Payday loans are easy to understand once you remember that they are centred around the date you get paid. What this means is if you come across an urgent situation that needs fast extra cash, applying for this type of loan might be your only option.
You can use the money to pay for emergency repairs and bills or other expenses that cannot be delayed until payday. The good thing is, you can benefit from payday loans even if your credit history is not so good. This is why they are often associated with higher than average interest rates and fees.
Find out about best practices that can help you choose the right short term loan for your needs.
What are the fees for a R1,000 payday loan?
- Initiation fee: 16.5% on the amount borrowed, R165
- Interest rate: Typically 5% per month, R50, or 3% for existing customers
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R33.75
- Estimated total repayment: R1,308.75 if repaid in 30 days
Final costs may vary a little between lenders. However, as you can see from the comparison table above, most lenders charge a very similar amount. If you repay the loan over a longer period of time, interest and monthly fees will change monthly repayment amount.
What you need to apply for a R1000 loan
The exact requirements depend on which lender you use, but usually standard requirements are as follows:
- A valid South African ID
- Proof of regular income. This could be a copy of your bank statement or payslip or internet banking details that can be verified online. Generally, these are required to show your bank account activities for the last 3 months.
- Personal details such as your age (you should be at least 18 years or older), email address, cell phone number, and full name.
How to apply and get a R1000 quick loan
If you have reviewed our featured lenders and their loan offerings, then you’re most likely ready to apply for your loan. Simply click “Go to Site”, and this button will take you to your preferred lender’s website and application page.
Most online lenders have user-friendly application pages where you can click on the “Apply Now” button to fill in the online application form. The loan application can be completed within minutes if you have all the details available. When you submit the form, the lender takes a look at it, verifies the information and then informs you on whether you have been successful or not.
If all is in order, you should expect your online application to be quickly approved in which case the cash loan gets deposited into your bank account. R1000 payday loans are generally same day loans, but this can also vary depending on the lender and other circumstances.
Advantages of R1000 payday loans
Payday loans are very profitable for most lenders. To attract customers, lenders, therefore, make it easy to obtain these loans. For example, applications are made and completed online in minutes without customers leaving their homes. Most lenders provide same day approval and transfer of the loan into your bank account, which is a popular feature among individuals seeking fast cash relief.
- They have fewer requirements than other loans
The most favourable thing about getting a R1000 short-term loan is the lack of strict requirements. Verification of your information mostly happens online. Above all, R1000 loans are available as a form of bad credit loans for those with poor credit scores.
Unlike with secured car loans and secured personal loans, You don’t have to use your personal property to secure the loan. Consequently, there is no risk of losing your property if you fail to pay back the loan.
Disadvantages of R1000 payday loans
Most lenders charge the maximum interest rates allowed by the National Credit Act in South Africa. These lenders want to lower the risk involved in giving out unsecured loans without checking the credit history of their customers. Other unreputable lenders simply want to take advantage of borrowers who are in urgent need of extra cash.
- It’s easy to find yourself in a cycle of debt
Borrowing only R1000 may seem harmless. However, due to the expensive nature of payday loans, the amount you pay back is considerably higher than the loan amount you receive. The situation worsens if you keep on borrowing. Eventually, you can get stuck in an endless loop of borrowing and repaying larger and larger amounts of money.
Best practice for choosing a R1000 payday loan in South Africa
There are many choices for R1000 loans in South Africa, so it’s important to compare the available options carefully. Best practice involves considering the following factors:
- The overall cost of the loan – Aside from interest, other charges can increase the total cost of your loan. These include VAT, monthly admin fees, and initiation fees. Knowing about all the costs involved before applying for a R1000 loan will help you decide if you can afford the loan or not.
- Terms and conditions of the loan – These include the repayment terms. Are you able to pay back the loan in the manner stated by the lender? Also, are you aware of the penalty fees the lender will charge if you fail to pay back the loan as agreed?
- Reputation of the lender – It is best to borrow from a licensed lender with a good reputation. These types of lenders generally encourage responsible borrowing and offer reasonable rates and loans to people.
What are the repayment terms for R1000 loans?
Depending on the lender, you can choose to pay off the loan over a loan term that is between 4 days and 6 months. The general idea is that lenders expect payday loans to be paid when your next payday arrives. The repayment can be automatically deducted from your account via debit order, so there is little chance of you failing to pay or delaying the payment.
Is a R1000 payday loan right for you?
At the end of the day, a R1000 loan can quickly bring financial relief if you find yourself in a tight spot. The critical thing to remember when dealing with payday loans is that there is still a sacrifice involved in the form of costly charges. Therefore, payday loans should not be a regular solution to all your money problems. Most importantly, neither should the loan be used to cover unnecessary expenses.
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