Short-term loans are preferred in South Africa as it gives excellent financial aid to the small business owners and individuals to cater to urgent needs. If you are the one who is looking for a short term loan in South Africa, you need to understand various things before applying. Friendly Finance has put together an excellent guide to educate you about these loans so that you can make an informed decision.
What Are Short Term Loans?
A short-term loan is a kind of loan which you can get on an immediate basis with the highly easy process while the payback is quick. The duration of the loan depends on the lenders from which you are borrowing cash; however, the average timetable is usually 3 to 12 months. These loans are helpful for small businesses, companies, and individuals who want quick money to deal with the financial crisis.
Amount Limit
Various reputable companies offer short term loans in South Africa. The amount limit varies according to the lender’s offers. The average short-term loan range is R500 to R10,000 with different interest rates. These loans can be gained immediately, mostly in 1 to 2 working days right after the approval.
Who qualifies for short term loans in South Africa?
In South Africa, short term loans are popular as well as easily accessible because of the time frame, ease, and convenience. You need to fulfill some requirements to qualify for these loans.
These are as follows;
- It is essential to be a legal South African citizen
- A well-maintained personal/business cash flow
- Regular income is crucial
- Good credit score history
- You must be over the age of 18 years
Credit Requirements
People who want to apply for short-term loans in South Africa must have a good credit score history. The credit history is checked and analyzed by the lenders, and if you have a negative credit score or under debt review, your application for the loan will be rejected.
Short term Loan Duration
Short-term loans are flexible and versatile enough to provide excellent financial support to businesses as well as individuals. Unlike long-term loans, short-term borrowing consists of a short duration which saves you from some stress, and you do not need to pay it back for many years. The maximum short-term loan duration in South Africa is 15 months while the minimum time is 1 to 3 months. The payment schedule is set by the lender, which is usually flexible and appealing.
Applying Procedure
South African citizens can easily apply for short-term loans with different companies even without leaving their house. The whole procedure is simple, you just need to fill an online application. Small initiation fees, interests and VAT includes, which depends on the amount you are borrowing. Some documents, including the official bank account details and other financial records, are essential to have as evidence while applying. After your application filled, the lender will check and send you a short-term loan offer with negotiable interest rates. After your approval, you will receive cash within 48 hours.
Friendly Finance is a leading company in South Africa that aims to provide you with the best short-term loan offers with simple terms, conditions and processes. The loan attainment is easy, with which you can manage the financial crisis, either personal or professional!
For more information, visit: www.friendlyfinance.co.za
