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What is a Payday Loan?


Payday loans are short-term loans which are used to service an unexpected expense, the amount usually varies from R500 to R8,000 and repayment options are available from 1 - 6 months.


Online Payday loans are very fast, convenient and can also be easily accessed if you are permanently employed and have the ability to repay the payday loan.


If you find yourself scouting around for cash to get you through the end of the month there's a good chance that you may think about taking out a payday loan but first have a look at both the advantages and disadvantages below:


There are advantages and disadvantages to payday loans which are discussed in this blog.


Advantages of a Payday Loan


Quickness:


Once your information has been processed your loan is usually paid out instantly without any delays.


Convenience:


In today’s technology era, everything is done online, including applications and submission of documents where necessary, we no longer need to meet with a loan office or loan manager to obtain new loan.


Basic Requirements:


In most cases all that is required is a permanent employment, a valid South African ID, 3 months bank statements and a salary above R2,500 per month.


There are also disadvantages to payday loans which need to be considered:


Disadvantages of a Payday Loan


More Expensive:


As per the NCR payday loans are the costliest way to obtain credit as it is usually 5% % per month in interest.


Vicious Cycle:


If not used wisely payday loans can leave you in a vicious cycle if you continue to borrow. Never be tempted to payback a loan by taking out another loan.


Legal Implications:


Not paying back a loan can lead to legal action as with any other form of credit that is not repaid. Therefore, it is always best to ensure that you can service the debt that you have taken out.


Money-Mouse always encourages that payday loans be obtained responsibly and for you to consider if it will not affect your finances drastically and for a long period of time.


Personal Loans

A personal loan is a long-term loan which is generally used for something big such as home renovations, education or even purchasing a vehicle. The amount varies from R8,000 to R150,000 and repayment options are available up to 72 Months.


Because personal loans are taken over a long period of time it requires much thought and planning on exactly how the money would be used.


There are also advantages and disadvantages to personal loans which are discussed below.


Advantages of a Personal Loan


Unsecured:


With a personal loan, no one can attach your property or assets if you cannot pay back the monthly installment.


Longer Repayment Period:


Personal loans can be taken out up to 6 years which is great especially if you need a long period to service the debt, please also remember the longer the loan term is the more interest you pay.


Basic Requirements:


In most cases all that is required is a permanent employment, a valid South African ID, 3 months bank statements and a salary above R2,500 per month.


Disadvantages of a Personal Loan


High Interest:


The biggest drawback of personal loans is the high interest rate, since personal loan is unsecured lenders charge much higher interest as compared to a home loan or vehicle finance.


Credit Rating:


It is not easy to get a personal loan especially as the economy and lenders tighten belts. In order to get personal loan, you will need to have a decent to good credit score and good credit history which will impact the lenders decision positively.


Drawing a loan budget is a good idea before you spend a single cent of the money borrowed, what is more important is that you stick to the budget, so you will not have any long-term regrets.


Money-Mouse always encourages that personal loans be taken out responsibly, thoughtfully and for the right reasons.

What is a Personal Loan?


A personal loan is a long-term loan which is generally used for something big such as home renovations, education or even purchasing a vehicle. The amount varies form R8,000 to R200,000 and repayment options are available up to 72 Months.


Because personal loans are taken over a long period of time it requires much thought and planning on exactly how the money would be used.


Drawing a loan budget is a good idea before you spend a single cent of the money borrowed, what is more important is that you stick to the budget, so you will not have any long-term regrets.


Once again Money-Mouse always encourages that personal loans be taken out responsibly, thoughtfully and for the right reasons.

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What Are Payday Loans?

Payday loans can either make you or break you depending on what you use the cash for and for how…

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Approved Payday Loans

There are 3 basic requirements to be qualified for a Payday loan. 1. Be permanently employed 2…

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What Are Personal Loans?

A personal loan is generally over a period of 6 – 72 months and an amount up to R200,000…

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Approved Personal Loans

1.Check your credit score and see if you have a good record, this is generally the first point that…