Get R8,000 payday loans in South Africa
There are times when a specific emergency or expense can’t wait until payday. With payday loans, you have a perfect short term solution that gives you fast access to some extra cash.
However, payday loans are a little different from long term loans. Therefore, we have compiled some useful information to help you decide if an R8000 loan is the best option for you.
How does a R8,000 payday loan work?
Once you borrow a R8,000 loan, you have to pay it back in a short time frame. The repayment period for this kind of payday loan is between 1 day and 6 months, but the average loan term is usually 30 days or on your next payday. You can get an R8, 000 loan from any reputable South African bank, but there are also short term loan providers that specialize in payday loans.
Most payday loans offer a maximum of R4000, but if you’re a returning customer, you can easily get approved for a R8,000 loan. One unique feature of an R8000 payday loan is how fast the application process is. You can receive money in your bank account on the same day and sometimes within hours. Furthermore, the requirements to get a R8000 loan are a bit relaxed since your credit history or credit score does not matter.
What are the fees for a R8000 payday loan?
- Initiation fee: 16.5% on the first 1,000 and 10% thereafter, R865
- Interest rate: Typically 5% per month, R400, or 3% for existing customers
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R138.75
- Estimated total repayment: R9463.75 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.
How do you qualify for a R8,000 payday loan?
Unlike other types of loans, payday loans have fewer requirements. All you need is:
- a valid South African ID;
- proof of residence (any utility bill such as a water bill is accepted);
- proof that you have a source of income while you’re paying off the loan;
- minimum of 18 years; and
- a South African bank account you use for receiving your salary or income.
How to choose the best R8000 loan for you
Consider the interest rate (it should be as low as possible), the repayment period, and your lender’s trustworthiness. In this way, you get a loan you can afford, and from a place, you can trust.
What is the application process for a R8,000 payday loan?
Most South Africans now have smartphones that can access the internet. South African payday lenders have made it super easy to apply for an R8000 loan online. Simply go to the lender’s website.
You’re guaranteed to find clear instructions that tell you how to apply. Different lenders may have different online application processes, but most of your information (identity and income) are verified online. Once your application is approved, the funds are paid in cash or deposited directly into your bank account.
How do you pay back a R8000 payday loan?
Once the due date for repaying your loan has arrived, you have nothing to worry about. Most often, the due date is around the same time as your payday. In this case, the lender will claim their money back via debit order. In other words, the money will automatically get deducted from your account.
Depending on your agreement, the loan amount will be deducted all at once on your next payday. Alternatively, the money can be deducted in smaller amounts if you’ve chosen a relatively longer repayment term.
Advantages of a R8000 payday loan
- Ideal for people who need emergency funding
- Easy online application process
- Available for individuals with bad credit – no credit checks
- You don’t have to submit many documents
- Repayments are made through direct debit order which is convenient
- It is an unsecured loan
Disadvantages of a R8000 payday loan
- Very high-interest rates and fees
- The total cost of the loan can be too expensive
- There are also many unreputable lenders
What are the risks associated with R8000 payday loans?
- They can strain your budget
Most South Africans who take out payday loans want to cover for an emergency or an urgent situation that they didn’t plan for. This means the payday loan was not a part of their budget, but now they have to fit it in, in order to pay it back. Because of high-interest rates, this can leave you struggling with your budget after you pay off the loan.
- They can leave you with massive debt
Your budget may not recover from the high cost associated with a R8 000 payday loan as soon as you want. With a strained budget, you may be forced to take yet another payday loan, which can make your financial situation worse. Therefore, it is easy to get stuck in an endless cycle of borrowing R8 000 loans, which are usually approved for returning customers. Before you know it, you can have a substantial debt that you have no control over.
- Some lenders will take advantage of you
It is important to check if the lender you’re dealing with offers authorised financial services. The need for urgent cash can leave you feeling desperate, and it is easy to agree to anything, even highly expensive charges. Most lenders will try to profit as much as they can from you, thereby leaving you deep in debt.
- You can face legal action
Are you wondering what happens when you don’t pay back your R8000 loan? Since the loan is unsecured, the lender cannot take away any of your property. But what they can do is use debt collection services on you or take you to court
What are other types of R8,000 loans?
- R8,000 loan – Personal loans
Personal loans have longer loan terms, typically between 12 and 84 months. They also have lower interest rates, which makes them more affordable than payday loans.
- R8,000 loan – Secured loans
With secured loans, you can use any asset of value that you own, such as a car to secure the loan. If you fail to pay back the loan, you risk losing the asset.
- R8,000 loan – Credit card loans
This allows you to use money advanced on a credit card from a lender. You then have to pay back the loan through instalments. An R8000 credit card loan usually comes with high-interest rates.
- R8,000 loan – Online loans
This is a loan that can be applied for and approved online. Money is then transferred to your bank account after approval.
- R8,000 loan – Bad credit loans
You can get a R8000 loan with bad credit. However, these come at a high-interest cost.
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