Minimum and maximum loan periods vary between 1 months and 10 years. Comparison interest rates vary between 6.55% and 60% p.a. Total interest repayments vary between R685.05 and R844.12 over the life of the loan. *Comparison rate is based on an unsecured loan of R20,000 for a term of 3 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. These rates can change without further notice. All rates quoted are per annum. For more information regarding fees click on "View fees & additional info +" for each product or contact the provider.
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Online loans South Africa: making online loan applications
When you apply for a loan, you obviously want the money in your bank account as quickly as possible. Making an online personal loan application is a quick and straightforward way to borrow money from South African lenders. This article, therefore, gives you helpful and important information about the process of applying for online loans.
What loans are available online?
You can make an online personal loan application in South Africa for the following loans:
- Secured and unsecured loans – Secured loans use valuable property that you own such as a house or car as security against the loan. They offer low-interest rates and allow you to borrow more money. Unsecured loans, on the other hand, don’t need security and may come with higher interest rates.
- Short term loans – Typically, you can only borrow smaller amounts for short term loans, and they have to be paid off quickly. They also have higher interest rates but once approved, you can receive the money in a few hours. Payday loans are an example of short term loans.
- Study loans – These benefit your future by paying for your education. Study loans are structured differently from personal loans. The repayment terms are very flexible, and the interest rates tend to be lower.
- Debt consolidation loans – With a debt consolidation loan, you can pay off all your existing debt. This leaves you with a single account that is easy to manage and saves you on interest payments.
- Car loans – These help you achieve your dream of buying a car. Whether you want a new or used car, there are many car loans to choose from among our featured partners.
- Motorbike loans – Besides car loans you can also borrow money to buy the motorbike you’ve been keeping an eye on.
Where do you start when applying with online loans?
So, you’re thinking of applying for a loan in the comfort of your own home. The first step is to decide which loan you want to apply for. Using the following checklist makes it easier to compare the available choices:
- Maximum and minimum loan amount – Look for a lender that offers you the amount of money you need. Some South African lenders limit the amount of money you can borrow while others will only lend you money above a certain amount.
- Loan term – Loan terms are usually between 6 months and 72 months. Get a loan that gives you enough time to pay back the loan without struggling because of high monthly instalments.
- Interest rate – Here, there are many things to consider besides the interest rate. While low-interest rates are always better, you also have to choose between a fixed and variable interest rate. Fixed rates do not change while variable rates can go up and down. Both choices have their advantages and disadvantages, and the best option depends on your circumstances.
- Repayment terms – Usually you pay back the loan once every month. However, it is also better to go for a loan that lets you make additional payments if you wish to. For example, you can switch to weekly payments when you can afford it. This allows you to pay off the loan quickly and save on interest.
- Additional fees – There are other fees associated with loans. A loan may look cheaper at first, but additional fees will bring the total cost up. Find out about additional fees such as admin and initiation fees.
- Additional benefits – Because of competition, some lenders offer extra benefits that attract more customers. Such benefits may include getting your loan on the same day or excellent customer service. Take advantage of these benefits, especially if they come at zero cost.
How to make a personal loan online application in South Africa
The specific process and requirements depend on the lender you choose. However, general requirements and steps may include the following:
Online loan application requirements
- valid South African ID;
- minimum age of 18 years;
- South African bank account;
- bank statements or payslips not older than 3 months to show proof of income;
- minimum monthly income. Whether you are employed or self-employed, you have to be earning a certain amount. For example, your lender may want you to earn above R5000 in order to qualify; and
- a good credit score. However, loans for bad credit are also available.
Online loan application steps
- After comparing the various South African lenders featured on this page, click on “Go to Site” to visit the lender’s secure website and apply for a personal loan.
- Follow the instructions provided. You will likely be asked to fill an application form with details such as email address and employment information.
- Submit the application form and wait for approval.
- Once the loan is approved, the lender usually sends you a loan offer which you accept in order to receive the money in your bank account.
Online loan applications vs. traditional paper applications
Compared to traditional branch visits, online personal loan applications offer the following advantages:
- They are easy and quick to apply for. Minimum effort is required since you don’t need to visit the lender’s offices physically.
- Sometimes online loans in South Africa have instant approval after you apply. Generally, receiving money in your bank account can happen within hours or after a few business days.
- Online loans are easier to compare since the information is always available on the lender’s website.
- Online loans are relatively safe since you can verify the information online. You can find reputable institutions that offer authorised financial services and are regulated by the National Credit Act (which is the case of all the lenders showcased on CompareLoans). It’s also easy to find online reviews along with the license details of different lenders.
But if you want extra help during the loan application process, branch visits may be better for you. Here, staff members can guide you through the process more easily.
Online application personal loan calculator
If you want to take an online approach when taking out your loan, we recommend using our quick calculation tool. Simply enter two main details (your loan amount and desired loan term) into the spaces provided and click on “Calculate Repayment.” This gives you an idea of the monthly repayment amount.
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