Features of a R4000 payday loan
With the South African cost of living rising daily, it’s easy to find yourself in need of quick cash from time to time. Sometimes you may need that quick cash in the form of a R4000 payday loan.
A R4000 payday loan can, therefore, help you to deal with unexpected cash shortages while you wait for your monthly salary. To find out if a R4000 loan is the best option, check out the features associated with this loan amount.
Common features of R4000 payday loans
- Short repayment period. With a R4000 loan, the lender expects you to pay the full amount and fees within a short period. This period does not usually go beyond 6 months. Generally, you have to start paying back the loan as soon as your next payday arrives or within 30 days.
- Expensive fees. Payday loans attract very high-interest rates and fees, so you should borrow only what you need and make the repayment as quickly as possible. If you fail to make or delay a payment, the lender can charge costly late payment fees.
- Easy application and fast approval. Payday loans are easy to apply for. Most lenders offer secure online application platforms and fast responses, and your loan approval can take less than 24 hours.
What you need to apply for a R4000 payday loan online
Most South African payday loan lenders will require you to provide some or all of the following:
- A valid South African ID. (You should be older than 18 years).
- Previous payslips
- Bank statements
- Proof of residence
What are the fees for a R4000 payday loan?
- Initiation fee: 16.5% on the first 1,000 and 10% thereafter, R465
- Interest rate: Typically 5% per month, R200, or 3% for existing customers
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R78.75
- Estimated total repayment: R4,803.75 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 more extended period, interest and monthly fees will change the monthly repayment amount.
How to get the best option when applying for a R4000 payday loan
- Always keep in mind that quick payday loans should solve small or emergency cash problems. As such, you should only borrow a small amount that you can repay comfortably.
- Pay attention to the additional fees that the loan provider is charging. These extra fees add up, and you might end up paying more for your loan than you budgeted for. This will result in you receiving a smaller amount of your salary when you get paid.
- Make sure the repayment terms do not affect your other debts. If you have other instalment loans and you fail to pay them off because of the payday loan, your credit score will be negatively affected.
- Check the loan terms and conditions to make sure you fully understand the borrowing and repayment process.
- It is best to carry out some quick online research and find out if a particular lender offers authorised financial services or not. This helps you to avoid unreputable lenders who try to take advantage of desperate borrowers.
How to apply for a R4000 payday loan
After comparing the loan options available on our list of featured partners, the next step involves submitting your application to the lender you have chosen. To begin, simply click “Go to Site.” This button directs you to their website and applications page.
There you will be required to fill in your details on the online application form provided. Once you submit your form, you will know within hours if your loan has been approved. Provided that it’s a business day and the application is made during business hours you are likely to receive your loan on the same day.
Can you get a R4000 loan with bad credit?
Payday loan providers usually offer loans for bad credit. However, they also need bank statements or your payslip information. This helps them to see how much you earn and therefore how much they can give to you. This process is usually automatic, and credit checks rarely carried get out.
Pros of R4000 payday loans
You can expect the following benefits when you take out your R4000 loan:
You can have your loan approved and sent to your bank account within one business day. Some lenders might even be able to send money in as little as half an hour. This will be very useful if you’re trying to secure urgent money.
Easy to compare payday loan options
Comparing your options is quite easy online. You just need to look at the features on offer from various lenders and apply for the one that is well suited to your needs. If you meet their requirements, you can start your application immediately.
Quick and simple application
The application process can be done online anywhere and in a matter of minutes. You can also receive instant approval from some loan providers.
A R4000 payday loan is a type of unsecured loan. There is no need to offer your car or any other valuable asset you own as security for the loan.
Cons of R4000 payday loans
R4000 payday loans have the following disadvantages:
Not all lenders operating in the online space have good intentions. Watch out for unusually high service charges or payments that are not clearly justified.
Payday loans attract higher interest rates and therefore, higher total costs than unsecured personal loans. It’s important to decide whether you truly need a loan before submitting your application.
The payday loan borrowing cycle
Because it is easy and convenient to apply for and receive approval for these loans, some individuals get stuck in a cycle of taking payday loans regularly. Others even use funds from a payday loan to pay off personal loans. This is not responsible borrowing since it can lead you further into debt.
How do you repay your R4000 payday loan?
Your lender will take care of the repayment process if you permit them. This means the lender can place a direct debit order on your account. When money is deposited into your account on your payday, instalments that are due automatically get deducted.
When repaying your R4000 loan, you typically have two options. For the first, you can repay the loan in one instalment. Alternatively, you can pay off the loan with several instalments that cover a longer loan term. However, you should remember that the longer the loan term, the more your interest will be.
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