Instant Loans in South Africa
Instant cash loans provide immediate access to funds. They are short-term lifelines offered by a variety of lenders, from banks to family and friends.
In South Africa, there are two broad categories of personal loans – secured and unsecured. There are also different lending models under each category.
Here’s a brief explanation of the two basic instant loan types, along with a few reliable options available in South Africa.
Unsecured loans are not backed by collateral. Lenders assess your credit history to determine eligibility. They also charge an interest rate based on your credit score.
As the risk of lending is high, you have to pay a comparatively hefty rate of interest. Providers of unsecured loans usually charge upfront fees, and levy late payment and early settlement penalties.
Defaulting debtors are reported to the credit bureau, and steps are taken to recover the outstanding amount.
Payday loans are quick and easy. Applications are processed online, and money is instantly available. Repayment terms and loan amounts are, however, limited. Interest rates and fees can be excessive.
Provided you have a reasonable credit history, and you’re permanently employed, your bank will lend you money over the short-term.
Applications are usually processed within a few days. A key benefit of a personal bank loan is a favourable interest rate, calculated according to your credit score.
Personal loans from family and friends
Borrowing money from family and friends is an informal way of accessing emergency funds. Terms are often open-ended, and interest is seldom charged. However, if you fail to pay back the loan, it can have a lifelong effect on your relationship.
These types of loans are secured by personal collateral. Interest rates and fees are consequently much lower than those associated with unsecured loans. Paperwork is limited, and loan applications are processed quickly.
Lenders are entitled to seize collateral if you fail to repay the loan.
Access your home loan surplus
If you have a home loan, and you’ve paid extra funds into the account over and above the monthly instalment, you’re entitled to borrow against that surplus.
You’ll have to pay the money back by way of a larger instalment, and at the same rate of interest as the home loan. This can be a risky option. If you default on your payments, the bank can repossess the bonded property.
Asset-based loan providers accept high value items as collateral for a loan. A fully paid up car, boat, jewellery or artwork can be used to secure funds over the short-term.
Repayment terms are usually flexible, and the amount you can borrow is determined by the appraised value of the item. Once you’ve repaid the money, the asset is returned to you.
Get instant loans in South Africa from Pawn My Car
Pawn My Car is a registered finance provider with physical branches in major South African cities. We offer instant cash loans based on the appraised value of all types of vehicles – cars, boats, trucks and motorbikes.
Our fees are fixed, our interest rates fall within NCR guidelines, and our repayment terms range from three to 24 months. Provided you supply the required documentation, funds are typically transferred into your account within 24 hours of applying for a loan.