Are you looking for a R600 loan in South Africa?
A R600 loan may not be a lot of money. But, it can pay for a temporary emergency depending on the situation. If R600 can fix the problem, there is no need to apply for a larger loan. This helps you to save money on interest. Furthermore, taking out a loan amount that you only need is what they call responsible lending. Let’s take a look at R600 loans and how you can use them to your advantage if your payday has not yet arrived.
How does a R600 payday loan work?
A R600 payday loan is a small-amount, unsecured loan that you use as a temporary cover for emergencies. Usually, this type of loan should be paid back in under 6 months. The repayments are taken directly from your salary on your next payday. Calculations for the total cost of a R600 payday loan are typically based over 30 days.
What are the fees for a R600 payday loan?
- Initiation fee: 16.5% on the amount borrowed, R99
- Interest rate: Typically 5% per month, R30
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R23.85
- Estimated total repayment: R812.85 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.
Advantages of R600 payday loans
- Easy Access: The most important advantage of a R600 cash loan is its convenience. You can apply online and get fast cash within a single day. Some South African lenders are even online around the clock!
- No Credit Checks: This means you can still get the R600 loan when you have bad credit.
- Unsecured Loans: The R600 loan is unsecured. Therefore, you don’t need to use any of your belongings as a guarantee for the loan. If you fail to pay back the R600 loan, the lender will not be able to take any of your belongings or assets.
Risks of R600 payday loans
- High interest rates: Even though it’s a small amount of money, R600 loans can be high-risk since payday lenders attach very high interests to them. To avoid expensive costs, you have to pay the loan back as soon as possible.
- Short loan terms: Apart from high interest rates, a R600 loan can come with very strict repayment terms. If you take one out, you might need to pay back the full amount as soon as possible. If you fail to meet the payday lender’s terms, you can end up having to pay some extra charges on top of the loan amount and interest.
- Might lead to a vicious debt cycle: When faced with the pressure of paying back debts on time, you can end up falling into an unfortunate debt cycle. Here’s an example: Say you take out a R600 loan, you will need to pay back this amount when you get your salary.
If you add the extra costs of more than R200, it means you will have to pay back approximately R812. If your salary is R2000, this means you will only have less than R1200. This might not be enough so you will end up having to borrow again. If this keeps happening, you will end up depending on the payday loan for survival.
Is a R600 payday loan the right choice for me?
To decide whether online payday loans are a good choice for you or not, it is crucial to understand how the R600 loan works. Most importantly, before you take a payday loan, you have to be sure that you can afford the repayments. Be confident that you won’t end up depending on payday loans for your day-to-day costs.
How to apply for a R600 payday loan
The R600 payday application process is made 100% online. After you have compared the available payday lender options using the comparison tables provided by CompareLoans.co.za, proceed to click “Go to Site” for the lender of your choice. On the site, you might have to upload several documents. Some of them include the following:
- Valid South African ID;
- Payslips for the last 3 months;
- Bank statements showing activity for the last 3 months; and
- Proof of residence, for example, any utility bill issued in the previous 3 months.
The lending decision might be given instantly online, or the loan provider can contact you with the decision later. Also, please note that when applying general requirements are as follows:
- You should be employed or self-employed;
- Minimum 18 years;
- A regular monthly income; and
- A valid South African bank account that receives your salary.
Tips for getting the best out of a R600 payday loan
- Only take out a payday loan in times of emergency and when you do not have other options.
- Payback the R600 loan before the due date or earlier to avoid legal action.
- Compare your options first before applying.
- Make sure the lender is a registered national credit provider that offers authorised financial services.
Frequently asked questions about R600 loans
How will I know if my R600 application has been approved?
The lender will send you an instant online decision, or you will receive an email or telephone confirmation. Payday loans usually get approved or declined within a day.
Can I still get a R600 loan if I have a bad credit record?
Most lenders will consider borrowers with all types of credit scores. Some lenders do not even check the borrower’s credit score.
Can I use the money for any purpose?
Yes, you certainly can. The money is yours, after all. It is advisable, however, to use payday loans for their intended purpose only, that is for emergencies.
Can I settle the loan before the agreed repayment period?
Usually, lenders do not mind if you want to settle the loan earlier than agreed. There will be no penalty fee at all. Instead, paying off your R600 loan works in your favour the next time you want another payday loan.
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