According to new research published by Old Mutual, 40% of South African households are unable to afford a R10,000 or more shock expense.
This has increasingly pushed South Africans towards friends, savings, and to a lesser extent stokvels to make ends means.
Above the R5,000 mark however, the research notes that formal loans are increasingly beginning to gain traction – despite a declining reliance on personal loans for amounts of R10,000 and over.
Currently, one of the easiest ways to access short-term loans in South Africa is by turning to an online short-term loan provider.
BusinessTech looked at some of South Africa’s biggest and most popular online loan providers and how they compare.
How it works
In order to qualify for an online short term loan, you need the following:
- A South African Citizenship with a valid ID
- Be 18 years of age
- A valid bank account
- A valid cell number
- 3 months proof of income
The interest repayable and payment dates can vary widely based on the amount requested.
This information is usually available to users in the form of sliders which show how amounts change based on varying factors.
Specifically, BusinessTech looked at loans of R3,000 – typically the upper limit the majority of these sites offer – with a 30-day repayment period.
Several sites also allow lenders to request larger sums of money depending on their user history with the site.
The following is meant to act as an informative comparison meaning quoted prices can change depending on a number of factors.
- Wonga charges R587.60 in interest and fees for R3,000 over 30 days.
- This is equates to an interest rate of 19.6%.
- Total repayment: R3,587.60
- Wannaloan charges R609.50 in interest and fees for R3,000 over 30 days.
- This equates to an interest rate of 20.3%.
- Total repayment: R3,609.50
- Boodle charges R652.97 in interest and fees for R3,000 over 30 days.
- This equates to a monthly interest rate of 21.8%
- Total repayment: R3,652.97
- GetBucks charges R682.97 in interest and fees for R3,000 over 30 days.
- This equates to a monthly interest rate of 22.8%
- Total repayment: R3,682.97
- Mulah charges R602.67 in interest and fees for R3,000 over 30 days.
- This equates to a monthly interest rate of 20.1%
- Total repayment: R3,602.68