Much of the world is online these days. You can pay bills, teach, learn, and even do your grocery shopping online. So it makes sense that financial services would follow the lead.
Another internet service that’s become popular in the last few years is quick online payday loans. South Africans can apply for and receive loans without having to ever leave their houses!
If you’re in need of funds and looking to borrow money from a trusted online source, this guide is just what you need. Find out more about how to apply for a loan online and which companies offer this service.
What Is An Online Loan?
Taking a loan online is similar to taking one at a bank or any other financial institution. The only difference is that you won’t be dealing with anyone in person. The money is usually transferred into your bank account after you’ve been approved, without any in-person contact.
The application for an online loan is paperless, with a web-based form to fill out, and you may be required to upload or email documents. Approval can take 3 minutes, or 3 days, depending on the type of loan. You can find all kinds of loans online – cash loans, personal loans, and even business loans.
The difference between each loan depends on the lender, which also determines the amount you can lend and the payment terms.
Cash loans are usually short-term, small amounts (less than R10 000) and are paid on your next payday. These are also known as payday loans. These are generally easy to get online, as they require very little effort and can be approved in minutes.
Personal loans are more secure and are often associated with much higher amounts than cash loans. You’ll find loans from around R500 to as much as R700 000 online. The payment plans are also longer. These loans generally require more documentation and added security.
Where To Get Loans Online In South Africa
Here are some of the best online loan providers in SA.
African Bank Quick Online Loans
Quite a well-known bank, you can apply for online loans easily and effortlessly with African Bank. They offer loans of up to R250 000 with payment plans ranging from 7 to 72 months. The bank’s great reputation makes this an easy loan to take out while maintaining your peace of mind.
Lime 24 Loans
If you need a quick, smaller loan, Lime 24 offers online approval in just 5 minutes. The loan amounts are only up to R5400 and can be paid in 35 days. While Lime 24 is new to the loan market, they seem to have quite an upstanding reputation.
FASTA is another great option for South Africans who need a loan quickly. You can borrow up to R8000 and choose to pay in one, two, or three installments. Approval online takes only 3 minutes, and the process is made simple for everyone. They are a registered credit provider.
UApply Loans Online
The great thing about applying for personal loans online with UApply, is that they give you a handful of options in one place. You apply to get a loan on their website, and within minutes, they have a list of lenders for you to choose from.
UApply does not lend the money themselves, but gives you all the information to make your choice. This allows you to choose a lender that you find the most trustworthy.
Wonga loans are short-term and flexible. You can borrow up to R4000 on your first application, and up to R8000 once you’re a returning customer. You have up to 3 months to pay the loan back, and the online application is quick and easy.
Standard Bank Loans
Standard bank is another South African bank that’s been around for ages. While you’ll find their branches all over the country, they have also joined the online world. Current and potential customers can apply online for loans of varying amounts, with multiple payment options.
Hoopla works very much the same way as UApply. You apply on their website and they provide you with a list of lenders to choose from. You can get payday loans, personal loans, and even debt consolidation loans. They take security very seriously and work with their providers and customers to keep everything safe and secure.
Sanlam is a big name in the finance and insurance industry in South Africa. They too have brought their service online. You can apply for personal loans of up to R200 000 and payment plans range from 2 to 6 years.
FNB Online Loans
FNB has a simple online process that makes borrowing from them an effortless task. You can apply on the FNB online banking website or app. Your offer will be based on your credit history and how much you can afford to pay back.
Nedbank offers personal loans of up to R300 000 to those who qualify. The application can be made online and is usually connected to your bank account.
Capitec Personal Loans
Capitec offers applications for loans on their website as well as on their app. They check your affordability and credit profile and personalise your offer accordingly. You can apply for personal loans, business loans, and even credit cards.
Online Loan Application Process
While the application for an online personal loan differs slightly according to the provider, the process usually involves:
- Filling out a form on a website
- Uploading/emailing the necessary documents
- Waiting for approval
Documents needed usually include a 3-month bank statement, recent payslips, proof of residence, and proof of identity. Once you have been approved, the loan funds will be deposited into your bank account.
Are Instant Online Loans Safe?
Dealing with personal information and finances online can seem risky, especially if you’re not used to dealing with online services. There are a few ways you can be sure your online loan is safe:
- Use a reputable provider and check for reviews on Hello Peter and Facebook.
- Make sure you’re using a secure device and that the website you are using is encrypted.
- Don’t follow links from emails offering credit loans. If you need a loan, rather access the lender’s website directly.
- Check the interest rate and make sure you aren’t paying back more than what is legally allowed.
The website Scam Buster has a record of scams that have targeted customers in the past.If you come across a scam, it’s best to report it to them to avoid anyone else falling victim.
Protecting Your Credit Score
While loans can be incredibly helpful in certain situations, debt can destroy your financial stability. So having insurance on your credit means you’ll be covered if you’re retrenched, disabled, or have other emergencies that mean you can’t pay your loan back.
Who Qualifies For Personal Loans Online?
Each lender will have different criteria for their loans. For many, your monthly income will come into place and some will look at your expenses to see if you can afford to pay back your loan. In South Africa, no one under the age of 18 can apply for any loan, but some lenders require you to be older.
The best way to get safe and easy online loans is to shop around before you commit. Keep in mind that a loan is not ‘free money’ and that you will have to pay it back. So don’t be tempted to take more than you need simply because it is being offered.
Check the interest rates, and how much you’ll end up paying back. And also refer to your budget to be absolutely sure that you can make the monthly payments.
The good news is that loans can be applied for, approved, and paid online. So if you’re in need of emergency financial assistance, you won’t have to wait around for a meeting with a lender.