R5000 payday loans – What you need to know
Depending on your situation, you might be asking, should I get a R5000 loan? It could be that R5000 is just the right amount you need to pay for a pressing bill or emergency. After all, not everything can wait until payday. We have you covered with all the information required before applying for your R5000 loan.
R5000 payday loans – How do they work?
The loan is typically used to cover short-term needs. Thus, it is an available option if you need money urgently and you’re able to pay it back quickly. Most lenders usually limit payday loans to smaller amounts. However, R5000 loans are still accessible, especially if you’re a returning customer.
You can get the cash loan within hours of applying. As a result, most people turn to payday loans when their salary is still far off, and funds are low. However, a R5000 loan doesn’t come cheap because of the high-interest rates and fees involved. Thus, it is essential to go over your budget and consider if you can afford to pay back the loan once interest and extra costs have been added.
What are the fees for a R5000 payday loan?
- Initiation fee: 16.5% on the first 1,000 and 10% thereafter, R565
- Interest rate: Typically 5% per month, R250, or 3% for existing customers
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R93.75
- Estimated total repayment: R5,968.75 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.
Pros and Cons of a taking out a R5000 payday loan
You can benefit from the following advantages when taking out your R5000 payday loan:
- You can apply from home. Most lenders have a secure online platform where you can apply on your computer or mobile phone.
- Fast response time. This means your loan is quickly approved and you can expect money to show up in your bank account within 24 hours.
- There are fewer questions asked. Generally, applying for a R5000 loan does not require submitting a lot of documentation. Some lenders might ask you to upload a few documents, but most of your information will be verified online.
Your credit history is also not important since the loan is approved based on your employment details. Therefore, you can still get a R5000 loan if you have bad credit.
- The loan is unsecured. With unsecured loans, you don’t have to use your car or any of your owned assets to guarantee the loan.
On the other hand, a R5000 payday loan comes with certain disadvantages:
- The total cost of the loan can be too high. This is compared to unsecured personal loans. If you factor in all the charges involved, including the interest, a R5000 loan might be a costly option. Furthermore, if you take more time to pay off the loan, the total cost will also increase.
- Some lenders can take advantage of you. Some lenders will charge the maximum interest rates and charges allowed. This does not encourage responsible borrowing. In fact, it can leave you with more problems than when you started.
- You can get into more debt if you fail to pay back the loan. Late payments result in penalty fees that can increase the total cost of your loan.
Factors to consider before applying for a R5000 loan
There are a few factors to look at that will help you choose the right lender and loan option for you:
- What is the total cost of the R5000 loan? For example, the estimated total cost for a R5000 loan over 30 days is R5,968.75. Consider how this will affect your budget.
- Are the repayment terms affordable? Choose a repayment term that lets you pay off the loan without struggling. Remember, late payments on your loan can affect your credit score. Make sure other terms and conditions do not make it harder for you to pay off the loan.
- Is the lender reputable and reasonable? It’s best to go with a licensed lender that offers competitive interest rates and fees.
What you need to apply for a R5000 loan
Requirements may differ from lender to lender. Typically, the following standard requirements apply:
- Valid South African ID;
- Banking details for the account that receives your pay or income;
- You should be over the age of 18; and
- Most recent proof of income (payslip or bank statements).
Application process for R5000 payday loans
We have partnered with reputable and licensed payday loan lenders willing to offer you the R5000 you need to support you until payday. These are showcased on this page so you can easily compare the available options. Once you have made your choice, click “Go to Site.”
This will take you to the lender’s application page where you can access their application form. Simply fill in the relevant details and submit the form. The lender will get back to you as soon as possible to let you know if the application was successful. If all goes well, you can receive the loan on the same day if it’s a business day.
Frequently asked questions about R5000 loans
How fast can I get my loan?
If your loan application is successful, you can expect the money in less than 24 hours. The fastest response time for some lenders can be as little as 10 minutes.
How do I pay back my loan?
You can choose to pay back the R5000 loan in one instalment or over several weeks or months. The average loan term is between 4 days and 6 months. For each repayment, the lender places a direct debit on your account. Therefore, the instalment is automatically subtracted from your bank balance when your payday arrives.
What can I do if I’m struggling to pay back my loan?
Most reputable lenders are willing to work with you if you have trouble paying back the loan on time. You can ask for a loan restructuring to get new due dates you can afford to meet. But, the lender can still charge you a penalty fee or take legal action if you don’t communicate with them on time. Alternatively, a debt consolidation loan can help your financial situation.
Can I apply for my loan in person?
If you prefer more guidance during the application process, you can visit the nearest branch of your lender. Preferably you can call the lender. Each of our featured partners on this page has a “Go To Site” button that takes you to the respective lender’s website where contact details are provided.
Will my loan be approved if I’m blacklisted?
R5000 loans for the blacklisted are available especially if you approach a lender who won’t perform a credit check on you. However, you will still need to demonstrate that you have a regular income and provide copies of your bank statements.
Can I get a R5000 loan if I’m unemployed?
One of the requirements when applying for this type of loan is a regular income. Lenders are generally willing to offer you a loan if you can prove that you’re able to repay the loan.
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