R500 loans for emergencies in South Africa
A R500 loan is a very specific amount of money that can solve a very specific problem for you. You might have met an unexpected situation, and you don’t have enough cash to address it. Sometimes your family and friends can’t help you with this small amount if they’re also waiting for their payday. In such cases, there is no need to worry. It is possible to apply for a R500 payday loan and get money as fast as you need it.
What is a R500 payday loan?
In simple terms, a R500 loan is a short-term, unsecured loan. This particular loan type delivers cash quickly in times of emergency. Although the R500 can generally be used for any purpose, it is best used to cover temporary and urgent cash shortages until you get paid.
Understanding how a R500 loan works
With payday loans, full repayment can be made as early as the next time you get your salary. That works in your favour as you will avoid paying more because of the high interest rates often attached to these loans. Below are some features of a R500 payday loan;
- You can apply online and receive money without visiting any offices or standing in queues.
- Usually, the lender deducts the repayment from your bank account automatically when your salary comes in.
- It has a high interest rate.
- It is used to meet emergency cash shortages.
How do you qualify for a R500 loan?
Below are some requirements for payday loans in South Africa:
- A valid South African ID.
- Be at least 18 years old.
- Receive a regular, monthly income.
- You might need to prove that you are employed.
- You could be asked to provide bank statements.
- In some instances, the payday lender can ask for proof of residence.
Comparing payday loans in South Africa
Yes, it would be best if you compared payday loan options before applying. This helps you get a better deal on your loan as different payday lenders offer different terms and conditions. Below are some essential factors to look at when comparing payday loans for R500:
- Loan terms: The repayment period will depend on the lender. You have to verify which payday lender offers the best repayment terms that work with your budget.
- Fees: You should make sure that you look at a few lenders first to get a rough idea of what’s fair and what’s unnecessarily expensive. The lower the rates and fees, the better.
- Speed of approval: If you need money right away, check to see which lenders will evaluate your situation instantly and approve your application.
What are the fees for a R500 payday loan?
- Initiation fee: 16.5% on the amount borrowed, R82.50
- Interest rate: Typically 5% per month, R25
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R21.38
- Estimated total repayment: R688.88 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 of time, interest and monthly fees will change monthly repayment amount.
How does the application process work?
The application process is quite simple. Just choose your desired South African lenders from those featured in the comparison tables. The “Go to Site” button will take you to their website. Next, follow the simple steps. If your application is approved, the R500 is likely to be in your account within a few hours.
Frequently asked questions about R500 payday loans in South Africa
What are my chances of getting a R500 loan?
Your chances of getting a R500 loan depend on your income, proof of employment and bank statements. Sometimes you might not be approved, and you will need to wait for a while before you apply again.
How quickly will I get the cash?
How quickly you receive cash differs between lenders. Most payday lenders will give you your funds on the same day or the following business day once you accept their payday loan offer. Again, the times differ between lenders, so it is best to check with the lender in case you need the money urgently.
How do I pay back my R500 loan?
Repayments are usually made via debit order. In other words, the money is automatically deducted from your account on the due date, which is often the next payday.
Will the lender contact my employer?
In some cases, the lender might try to verify if you are employed and receiving a salary. This is common with this type of loan because there is no credit check for R500 payday loans.
Is it safe to apply for a R500 online?
Yes. You just have to make sure that the lender is a registered credit provider.
What does “no credit check” mean?
This means that the payday lender will not request your report file from a credit bureau. They do not need to know your borrowing history to approve this loan. Even if the lender does not check your credit score, they will still check your bank statement to make sure that you can pay back the loan.
Is there a reason why payday lenders do not look at your credit history?
Payday lenders do often check your credit score. However, in some cases, instead of passing judgement on your financial history, payday lenders focus on whether you can pay back their money or not. That is the reason why they ask for bank statements and proof of employment. You should, however, appreciate that lenders carry a high risk when they give you money without looking at your credit report. This is why they charge rates that are higher than those for personal loans.
Popular payday loan searches