Important disclosure

Short Term Loans in South Africa

Short term loans are a very easy source of quick credit for many South African individuals and businesses.

You can use our online calculator to calculate repayments on your selected short term loan amount. In addition, you can take a look at our featured lenders in South Africa to determine the best short term loan alternative for you.

Calculate repayments

Improve your credit score and get your R4000 loan with CreditGenie

1 month
to 5 years
R1,500
to R150,000
n/a
Yearly
Credit Repair: R117 Inclusive of fees
Do you need to improve your credit score in order to get a loan? CreditGenie may be able to assist. They can provide you with your credit score, assist in repairing your credit score (for R395 Once-off or R117 per month) and match you with the right loan using their complimentary Loan Assist service.
Do you need to improve your credit score in order to get a loan? CreditGenie may be able to assist. They can provide you with your credit score, assist in repairing your credit score (for R395 Once-off or R117 per month) and match you with the right loan using their complimentary Loan Assist service.

FinChoice MobiMoney for R4000

1 month
to 3 months
R100
to R6,000
Unknown
Monthly
R1,682 p/m over 3 mths Inclusive of fees
MobiMoney gives you access to up to R6,000 - when you need it. It's FREE to activate. Only pay for what you use. Same-day withdrawals of between R100 and R6,000. Repay over 1, 2 or 3 months. To qualify, all you need is an SA ID, SA Bank Account, be permanently employed earning more than R7000 monthly.
MobiMoney gives you access to up to R6,000 - when you need it. It's FREE to activate. Only pay for what you use. Same-day withdrawals of between R100 and R6,000. Repay over 1, 2 or 3 months. To qualify, all you need is an SA ID, SA Bank Account, be permanently employed earning more than R7000 monthly.

Fasta Loans for R4000

1 month
to 3 months
R500
to R8,000
5.00%
Monthly
FASTA Cash, right into your bank account. Apply online and get approval in minutes! Use the cash for whatever you need. Repay in up to 3 instalments. Fasta is not a payday lender, but a revolutionary South African Fintech, offering you a new payment method for online and in-store purchases. Through innovative technology, FASTA provides you with access to credit in minutes.
FASTA Cash, right into your bank account. Apply online and get approval in minutes! Use the cash for whatever you need. Repay in up to 3 instalments. Fasta is not a payday lender, but a revolutionary South African Fintech, offering you a new payment method for online and in-store purchases. Through innovative technology, FASTA provides you with access to credit in minutes.

Improve your credit score and get your R4000 loan with CreditGenie

1 month
to 5 years
R1,500
to R150,000
n/a
Yearly
Credit Repair: R117 Inclusive of fees
Do you need to improve your credit score in order to get a loan? CreditGenie may be able to assist. They can provide you with your credit score, assist in repairing your credit score (for R395 Once-off or R117 per month) and match you with the right loan using their complimentary Loan Assist service.
Do you need to improve your credit score in order to get a loan? CreditGenie may be able to assist. They can provide you with your credit score, assist in repairing your credit score (for R395 Once-off or R117 per month) and match you with the right loan using their complimentary Loan Assist service.

FinChoice MobiMoney for R4000

1 month
to 3 months
R100
to R6,000
Unknown
Monthly
R1,682 p/m over 3 mths Inclusive of fees
MobiMoney gives you access to up to R6,000 - when you need it. It's FREE to activate. Only pay for what you use. Same-day withdrawals of between R100 and R6,000. Repay over 1, 2 or 3 months. To qualify, all you need is an SA ID, SA Bank Account, be permanently employed earning more than R7000 monthly.
MobiMoney gives you access to up to R6,000 - when you need it. It's FREE to activate. Only pay for what you use. Same-day withdrawals of between R100 and R6,000. Repay over 1, 2 or 3 months. To qualify, all you need is an SA ID, SA Bank Account, be permanently employed earning more than R7000 monthly.

Lime24 Loans for R4000

5 days
to 36 days
R300
to R5,400
5.00%
Monthly
Have a job? Need cash fast? With Lime24's advanced technology in place, the loan is fast and approved in just 5 minutes. What you need to apply: Be 18+, access to your bank account, 3 months of bank statements and offical RSA ID.
Have a job? Need cash fast? With Lime24's advanced technology in place, the loan is fast and approved in just 5 minutes. What you need to apply: Be 18+, access to your bank account, 3 months of bank statements and offical RSA ID.

Fasta Loans for R4000

1 month
to 3 months
R500
to R8,000
5.00%
Monthly
FASTA Cash, right into your bank account. Apply online and get approval in minutes! Use the cash for whatever you need. Repay in up to 3 instalments. Fasta is not a payday lender, but a revolutionary South African Fintech, offering you a new payment method for online and in-store purchases. Through innovative technology, FASTA provides you with access to credit in minutes.
FASTA Cash, right into your bank account. Apply online and get approval in minutes! Use the cash for whatever you need. Repay in up to 3 instalments. Fasta is not a payday lender, but a revolutionary South African Fintech, offering you a new payment method for online and in-store purchases. Through innovative technology, FASTA provides you with access to credit in minutes.

Wonga Loan for R4,000

4 days
to 6 months
R500
to R4,000
5.00%
Monthly
New customers can borrow up to R4000, and up to R8000 for existing customers; now with 6 months to pay. What you'll need: A cellphone number, SA ID number, bank account details and most recent proof of income.
New customers can borrow up to R4000, and up to R8000 for existing customers; now with 6 months to pay. What you'll need: A cellphone number, SA ID number, bank account details and most recent proof of income.
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Minimum and maximum loan periods vary between 1 months and 6 months. Percentage Rates vary between 5% per month and 38% p.a. Total interest and fee repayments vary over the life of the loan. All rates quoted are 30 days. For more information regarding fees, visit or contact the provider.

What are short term loans?

Short term loans are a quick way to get cash for an emergency. You can use the borrowed funds to solve business cash flow problems or for other personal matters. As the name suggests, this type of loan applies for only short periods.

Different registered credit providers in South Africa may consider a short period to be between 1-2 years. Generally, most short term loans have to be repaid within a year. They can be processed in as little as 24 hours. Also, even if your credit history is not excellent, you can still qualify for a short term loan.

A short-term loan is, therefore, an excellent solution for both individuals and businesses looking to fix a temporary financial difficulty.

Common features of a short term loan

  • The loan must be paid off quickly, usually within six months or one year.
  • They typically range from R500 – R250 000.
  • You can receive a lump sum in as little as 24 hours after application.
  • They involve slightly higher rates compared to long term loans.
  • However, they can be cheaper to repay than long term loans .

Steps to receiving a short term loan

  1. Determine the amount you wish to borrow and which you can afford to pay back.
  2. Compare short-term loan options and choose a suitable lender.
  3. You should agree with your lender on the following things:
    • the interest rate;
    • the full amount you have to pay back;
    • the period you are expected to pay back the amount; and
    • the dates on which the instalments will be paid.
  4. Once you submit your application, you give the lender time to process it. During this time, they may also look at your cash flow history and other financial activities.
  5. If you qualify for the loan, the money is quickly forwarded into your bank account.
  6. You use the funds to cover your immediate financial needs. At the same time, you start paying off the short term loan as agreed until the loan is paid back in full.

What kind of short term loan should you choose?

Short term loans are usually on offer in the following forms:

  • Payday loans

Payday loans are common in South Africa. They are easy to obtain from many reputable banks and lenders. Payday loans are usually taken to cover an emergency while you wait for your payday to arrive.

When your salary reflects in your bank account, the lender is authorized to take the amount you borrowed plus interest. Payday loans have very high interest rates, and they typically have to be paid back in one instalment.

  • Merchant cash advances

A merchant cash advance offers an excellent option for businesses facing cash flow and working capital problems. The process is simple and straightforward: A business receives a loan from a lender. The lender, in turn, gains access to the business’ card terminal.

Each time the business gets money from customers through card payments, the lender subtracts a small instalment until the loan is paid in full.

  • Short term online loans

An online loan can be accessed by simply visiting an accredited lender’s website and filling out an application form. In any case, the application and processing are all made online.

Once the loan is approved, the money is then instantly transferred into your bank account. Repayment usually involves the lender automatically taking the instalments from your account.

  • Invoice Financing

This type of loan is meant to support businesses while they wait for customers to pay their invoices. Businesses can, therefore, borrow money against their unpaid invoices (accounts receivables). The loan amount is typically a percentage of the total invoice amount.

When the customer finally pays the invoice, the lender then takes the amount owed by the business, including interest and other service fees.

  • Lines of credit

Lines of credit can be viewed as credit cards for businesses. The business can use funds from the line of credit. How much depends on the limit placed on the line of credit.

The business then has to pay back the amount they have used plus interest at a later date. The number of monthly repayments also depends on the money borrowed by the business using the line of credit.

Benefits of short term loans

  • You pay less on interest – This is because you typically have to pay off the loan within a year. Compared to long term loans, this results in lower interest payments.
  • You can access the loan quickly – Since the loan has to be paid back within a short time, most lenders are willing to process short term loans for you quickly. Once your application is successful, the money is transferred into your bank account (sometimes within minutes).
  • There are no strict requirements – Your credit score doesn’t have to be perfect for you to receive a short term loan. Most businesses and individuals easily qualify for a short term loan. This is because the loan is usually a smaller amount compared to longer-term arrangements.

Disadvantages of short term loans

  • Penalty fees can be costly – If you don’t repay the loan as agreed the penalty fee and interest rates can make the short term loan very costly.
  • Dealing with untrustworthy lenders will cost you – While short-term loans are relatively easy to access some lenders can exploit you by charging unreasonable fees and interest rates.
  • You can only borrow small amounts – Because the lender requires you to pay back the amount in a short period, they will only usually give you a smaller loan amount.

What do you need when applying for a short term loan?

Your chosen lender may need to see the following before considering your application:

  • Bank statement showing account activity for the last three months;
  • Proof of identity that also shows you’re 18 years old and above;
  • Proof of regular income.

Bottom line

Short term loans should only be taken if you can afford to pay the required monthly instalments. Otherwise, defaulting on your short term loan can damage your credit score and get you into more debt.

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