Do you need a R7000 payday loan?
Perhaps payday is too far away, and an emergency just came up from nowhere. It’s the middle of the month, and your family and friends are also broke and can’t help. In this case, you can get a R7000 loan and quickly solve the problem in just a few hours. Find out important information on how to secure this loan amount as soon as possible.
What are the fees for a R7000 payday loan?
- Initiation fee: 16.5% on the first 1,000 and 10% thereafter, R765
- Interest rate: Typically 5% per month, R350, or 3% for existing customers
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R123.75
- Estimated total repayment: R8,298.75 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 the monthly repayment amount.
R7000 payday loan – Pros
The advantages of taking out a R7000 loan can be described as follows:
- It’s a quick loan – Your application is quickly processed. Most lenders will deposit money in your bank account within 24 hours if your application is approved.
- No credit checks – It can be difficult getting a R7000 loan with bad credit. However, there’s no need to worry here. Your credit history is not used to get approval for the loan.
- Fewer requirements – Generally, there is no need to submit numerous documentation during the application process.
- You apply online – As long as you have an internet connection, you can apply in the comfort of your home. Most lenders ensure that they supply you with an easy and secure application platform that contains simple instructions.
- No collateral needed – Unlike secured loans, there is no need to use your car or house to secure the R7000.
R7000 payday loan – Cons
- It can be very costly – Quick, and unsecured loans usually come with very high-interest fees. This is because of the high risk involved. Besides interest, other charges can make the total cost of the loan very high. This is when compared to different types of loans, such as personal loans.
- Not all lenders are trustworthy – R7000 loans are a profitable business for some lenders who will charge the maximum rates and fees allowed. Some people agree to unreasonable charges because they’re in a desperate situation. However, this can lead to taking out a loan you can’t afford to pay.
- You can end up with a bigger debt – Is it a good idea to take out a R7000 loan? This is a question you should ask before applying. Short-term loans for smaller amounts are generally expensive. They should only be considered when necessary and if you can afford them.
Where do I get a R7000 payday loan?
There are many South African lenders available and willing to offer you a R7000 loan with the terms and conditions that you want. We have showcased a list of popular payday lenders here. You will find that with so many options to choose from, you need to compare these offers first. Using the following factors to compare will help you get the best deal on your loan:
- Total cost of the loan: The aim here is to keep the total cost of the loan down. Even if the interest rate is low, find out if there are any hidden charges. These may end up costing you more than you budgeted for.
- Terms and conditions for repaying the loan: Think about how much time you need to pay back the loan. Also, are you okay with having a certain amount deducted from your account on your payday?
- Reputation of the lender: Do some research on your lender and look for reviews. Does the lender charge higher fees than average? Do they offer authorised financial services? Do they make it easy to apply for and receive the loan? Is their customer service good?
What you need to qualify for a R7000 loan
Loan lenders in South Africa have different eligibility terms, but standard requirements include:
- Personal details: Your full name, South African ID, cell phone number, physical address, email address, and age (you should be 18 years and above).
- Banking details: Internet banking information and details of your account history for 3 months (bank statements).
- Employment details: Proof of employment, such as a letter of employment or contract.
How to apply online for a R7000 loan
If you have found the right R7000 loan for you on our list of featured partners, congratulations! To start the online application process, simply click on the “GO TO SITE” button. It will take you straight to the lender’s website, where you fill out an application form.
Once you submit, you can find out if your loan application has been successful or not in just minutes or hours. Successful applications mean that the money will be in your bank account within 24 hours, depending on the time and how fast the lender’s response is.
What are the repayment terms for a R7000 loan?
A R7000 payday loan is a short term solution, and the repayment period varies on average from 4 days to 6 months. Therefore, the loan is paid out quickly and also needs to be paid back quickly. Payment is made via debit order on the scheduled date.
This means the money is automatically deducted from your account when you receive your pay. You can choose to make one large payment or pay off the loan in smaller instalments. But, you pay more in interest if you take longer.
Can you get a R7000 loan for bad credit?
A R7000 loan for bad credit is a very high risk for the lender. While you might be able to get one, it is important to note that the loan is likely to have a very high-interest rate.
Can I use the R7000 loan for anything?
Generally, the loan comes with very few restrictions. Most people who apply for this type of loan simply want extra cash to push them to the next payday. Common uses for R7000 loans include paying bills, repairing a broken-down car, and covering any unexpected emergency.
R7000 loan – Important reminder
The biggest advantage of a R7000 loan is how quickly it can be accessed. It may seem like easy money, but it comes with high-interest rates and other charges besides. As always, responsible borrowing is encouraged. If you’re struggling with debt and have become too dependent on payday loans, it might be wise to consider a debt consolidation loan.