R900 Payday loans in South Africa
Do you need a super quick and easy way to make sure that you have enough money to tide you over until month-end? If your answer is yes, then our next question is, does a R900 loan sound specifically like the solution you’re looking for? If so, you’ll be pleased to know that this small loan amount represents cash that you can get on the same day. Therefore, you can receive money in your bank account right in time to meet any urgent needs.
With a R900 payday loan, repayment usually occurs within a short period. As its name suggests, this loan is typically paid back when the borrower gets their salary, which is generally after 30 days. Read on to find more about this specific loan amount and the best way to access it.
What is a R900 payday loan?
A R900 payday loan is a type of short-term, unsecured loan that is structured to give you quick access to cash. The loan is designed for those times you need a bit of extra cash to get you through to month-end. The lender or loan provider deducts the repayment amount from your account when your paycheck cashes in.
Below are some features associated with a R900 payday loan:
- They are designed to be repaid fully in a short period.
- Payday loans are typically advertised as a convenient way to deal with unexpected emergencies. They are also perfect for when you are failing to make ends meet and patiently waiting for your payday to arrive.
- Loan providers usually make sure that payday loan repayments are made via automatic debit orders. This allows them access to consumer accounts whenever they need.
What are the fees for a R900 payday loan?
- Initiation fee: 16.5% on the amount borrowed, R148.50
- Interest rate: Typically 5% per month, R45
- Monthly service fee: Around R60 per calendar month
- VAT: 15%, charged on the initiation and monthly fee, R31.28
- Estimated total repayment: R1,184.78 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, interest and monthly fees will change the monthly repayment amount.
Should you take a R900 payday loan?
If you are wondering whether taking out a R900 payday loan would be a good option for you, you might have to consider the following.
- Payday loans are only meant for short term use; they will not work for long term problems.
- When taking a payday loan, you have to be sure that you will be able to pay it back in time. Failure to do so will mean extra costs on your end, which might end up lowering your credit score. R900 might seem like a small amount, but high-interest rates and fees can make the total cost of the loan more expensive.
- It is not recommended to use payday loans to pay your existing debt. For this, a debt consolidation loan might be a better alternative.
- If you want to take out loans regularly, payday loans might not be the right option for you.
R900 Payday loan requirements
- A bank account, in your name that has been active for more than 3 months;
- You have to be permanently employed, with a regular salary;
- You have to be above the age of 18 years;
- An email address and cell phone number that you have access to; and
- You should be a South African citizen in possession of a valid South African ID.
How to apply for a R900 payday loan
Applying for a payday loan is quite simple, and it can be done online. All this removes the hassle of transport and queues.
Usually, you have to fill out an online form which has several fields. You need to select the loan amount you need, supply your details and then submit your application and wait for approval.
Once the application is received, a consultant will get in touch with you to confirm your information and make sure that everything works out for you. If your loan is approved, you can get the confirmation via email or phone, and you will receive your money on the same day. This allows you to cover your financial situation conveniently.
Improve your chances of getting approved for a R900 payday loan
For you to qualify for a payday loan, you have to fulfil certain conditions. The first step is loan application and approval. If you supply all the required information, and you meet the loan providers conditions, the loan will get approved in a very short space of time.
Usually, all that is needed is to convince the credit provider that you will be able to repay the full loan amount within the given time. This is quite important since these loans are not secured. This is also the reason why they have a slightly higher interest rate.
If your information is convincing enough, there are high chances that your application will be approved. The good thing is that a R900 payday loan is still accessible even with bad credit.
What can you do if you are struggling to pay off a payday loan?
- If you are struggling to repay your R900 payday loan, you should contact your credit provider as soon as you can.
- Negotiate another payment plan with your loan provider, stating the reason why you cannot afford the original repayment plan.
- Make sure you stick to the new repayment plan. This can have negative effects on your credit score, lowering your chances of being considered for another loan in the future.
Advantages of a R900 payday loan
- It offers a small amount of money that can go a long way
While a R900 loan is a relatively small amount of money, it can provide financial relief that will last you until month-end.
The process of getting a R900 payday loan is quite straightforward. Simply, complete a payday online application form using the clear instructions provided and submit. If you get approved, you will receive the funds on the very same day.
You can still receive a loan approval when you have bad credit.
The risks associated with a R900 payday loan
- Sometimes loan providers give loans to customers who can’t afford to pay back. If a loan provider does not perform an assessment properly, you might be at risk of taking a loan that you cannot afford to pay off.
- You need to calculate the amount you can afford so that you will be able to make the repayment amount. This helps you avoid defaulting on your loan.
- Failing to pay back can negatively affect your credit report. This can lower your chances of getting approved for credit later on.
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