Short term loans include loan types such as payday loans, personal loans and other loan types that does not have an extended repayment term such as a home loan or business loan.
Different types of short term loans
Short term loans include a number of loan types that have similar features such as shorter repayment terms and a lower maximum loan amount compared to long term loans. Here is a quick guide to the different loan types.
Payday loans are small cash loans, which are usually repaid within a period of six weeks. It is a loan type designed to curb financial emergencies and unexpected expenses. You can usually apply and receive the cash within minutes, making it a viable choice if you are in need of cash in a hurry.
A personal loan is typically an unsecured loan of up to R200 000. Some personal loans are secured, especially if you are applying with bad credit. Personal loans can be used to finance holidays, home renovations, or a wedding to name a few. The major advantage of a personal loan is the fact that it can be used for almost anything.
A credit card is also considered a short-term loan. Although as a line of credit, it is different to a cash loan. Nonetheless, credit cards are also a type of short term loan. Credit cards offer a host of features and benefits, which makes it one of the most convenient financial products available to consumers.
An overdraft is a financial product offered by financial institutions and is considered to be a short-term loan. Your income and credit score will determine the overdraft amount that you qualify for. An overdraft is considered revolving credit and is mostly commonly a financial product offered by traditional lenders ie banks.
Best feature of short term loans
Short term loans include such a variety of loans that it is worth looking at the key benefits and features of short term loans.
Quick loan application for short term loans
Short term loans are easy to apply for, and serve many financing purposes. Depending on your requirements, there is a short term loan solution for you. As long as you have all your information and supporting documentation on hand, you can have your loan approved in no time at all.
Need cash in a hurry?
Short term loans include payday loans, which gives you instant access to the cash you need to cover any emergency or unexpected expense.
Bad credit short term loans are available
If you have bad credit you can still apply for a loan. With a wide range of bad credit lenders in South Africa, there is no reason for you to postpone getting the financing you need.
Short term financial commitment
Compared to a vehicle loan or home loan, a short term loan does not require a long term financial commitment.
Why wait in a queue to apply for a short term loan?
There are countless reputable online short term lenders in South Africa that offer fast and convenient online loan application, making your life easier.
Same day approval speeds up financing
Many lenders offer same day approval and loan amount transfer. This means you could have the cash you need today!
Unsecured loan option
Another great feature of a short term loan is that it is generally an unsecured loan, which means you are not required to risk your valuable assets as collateral for the loan amount.
Flexible repayment terms
The repayment of your short term loan is flexible, and more so depending on the type of short term loan you are applying for. For example, a payday loan is usually repaid within a few weeks whereas a personal loan can be repaid over a term of up to 24 months.
Flexible loan amounts
Likewise, short term loans have the benefit of flexible loan amounts. You can apply for a personal loan of up to R200 000, whereas depending on your income, you could apply for a payday loan of about R5000.00.
Various loan options available
Knowing the loan type that you need to apply for also helps speed up the process of getting the cash you need. A loan comparison site is the best method to finding the most competitive short term loan in South Africa.
What are the general requirements to apply for a short term loan?
You will be required to have the following documentation: your valid SA ID, latest three months’ payslips and bank statements and proof of residence. These are the general requirements but you might have to provide additional documentation, which will be requested from you.
Short term loans are generally quick and easy to apply for. With various short term loan options available – you are bound to find the perfect financing solution to suit your needs.