Learn about R6000 payday loans in South Africa
Short term loans can advance you some extra cash before your payday arrives. One such type of loan is the R6000 loan. If you’re looking for this specific loan amount, then you’ll be relieved to know there are several options to choose from today. You can use the fast credit to pay for outstanding bills or to cover any urgent needs.
Why should you choose a R6000 loan?
- applications are quickly approved;
- fewer requirements compared to other types of loans;
- money in your bank account within 24 hours;
- secure online applications available 24/7;
- best way to get fast cash for an emergency;
- available for individuals with bad credit history; and
- it’s an unsecured loan. Hence, there’s no collateral involved.
How to get the best R6000 loan for you
There are many South African lenders willing to offer you a R6000 loan. When deciding which one to choose, you should consider the following:
- What are the fees? – The interest rate is always obvious, but other hidden costs include initiation, VAT, and monthly fees.
- Payment terms – You only have a short period to pay back your R6000. Are you comfortable paying back all the money in 30 days? Or do you need a longer repayment term?
Do you agree to give the lender permission to debit order payment from your account? Such questions help you decide if you can afford the loan or not and which lender to choose.
What you need to apply for a R6000 loan
- South African ID;
- Proof of residence;
- Proof that you’re able to pay back the loan (payslip or bank statement);
- South African bank account;
- Valid cell phone number; and
- You must be at least 18 years.
How to apply
R6000 loans are straightforward and convenient to apply for. The process can be started and finished online using your phone or computer. Therefore, you can apply any time of the day from any location. Most South African lenders have websites where you can fill out and submit an application form.
After this, you wait while your information is analysed and verified to see if you qualify for the loan. You’ll be told if your application is successful. Once you accept the loan offer, some lenders deposit the money in your bank account in less than 10 minutes. For other lenders, the process might take a few hours but rarely more than 24 hours.
What are the fees for a R6000 payday loan?
- Initiation fee: 16.5% on the first 1,000 and 10% thereafter, R665
- Interest rate: Typically 5% per month, R300, or 3% for existing customers
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R108.75
- Estimated total repayment: R7,133.75 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.
Paying back your R6000 loan
A R6000 loan is classified as a short term loan because it has to be paid back within 1 day or 6 months. Payments are centered around your payday. Once your income or salary is deposited, the payment gets deducted through debit order.
This means you give the lender permission to take money from your account. Depending on your agreement, the lender can take the money in full, including interest. Alternatively, they can take small amounts of money (instalments) over a longer period until the loan gets paid in full.
What you should know about R6000 loans
- They come with very high-interest rates, which makes the total repayment somewhat expensive. For example, you have to pay around R300 in interest over 30 days. Once you add an initiation and monthly service fee plus VAT, the average total cost becomes R7133.75.
- There is a risk of borrowing from an unreputable lender if you are not careful. Some lenders will take advantage of your urgent situation and charge you costly fees. This can make it very difficult to pay back the loan, resulting in even more penalty fees. It is always better to confirm that your lender is trustworthy and offers authorised financial services before making an application.
- Only apply for the loan if you’re confident you can make the repayments. Because of the high interest rates, taking out a R6000 loan that doesn’t fit into your budget can lead you down a path of constantly borrowing to stay on top of things.
Answers to popular questions about R6000 loans
What happens if I fail to pay back my R6000 loan?
Failure to pay back any loan might give you a bad credit score. Furthermore, you can end up with debt collectors knocking on your door.
Can I get a R6000 loan if I’m unemployed?
Most lenders are not willing to lend money unless they see proof of income or employment. This is because there is a higher risk of not being able to pay back the loan if you’re unemployed.
How quickly can I get a R6000 loan?
The quicker you apply, the faster you can get your loan. Once the loan is approved, some lenders deposit the money in your bank account within 10 minutes.
What other options are available besides a R6000 payday loan?
Several other options for a R6000 loan include:
- Unsecured personal loans: You can use the money for anything you want. The loan terms are usually longer than 24 months.
- Credit card loans: The R6000 will be made available to you on the credit card, which you can use to make purchases. You can pay off the credit you owe in full at the end of the month or opt for smaller monthly repayments.
- Study loans: A study loan can help pay for your education and education-related expenses, such as prescribed books.
- Car loans: If you need help buying a car, you can get a car loan. The car is used to secure the loan in the event of non-payment.
- R6000 loan for bad credit: Some lenders will approve the loan even if you have bad credit.
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