In these trying times, many of us are faced with major financial difficulties with some needing an emergency short-term loan to take care of unforeseen circumstances.

    In such situations, you wouldn’t have the time to go through a whole long process of waiting to access the funds you need.

    Fortunately, enough, we have service providers that can assist you in getting a loan fast. In this article, I will be listing 5 of the best short-term loans in South Africa. 

    According to Corporate Finance Institute, a short-term loan is a type of loan that is offered to a client to support a temporary personal or business capital need.

    It involves a payment plan principle that the amount loaned should be paid back with interest on a given due date which is usually within a year of receiving the loan.

    It involves a quick pay-out process with less interest rates for repayment. 

    1. Wonga

    Wonga is a flexible financial service provider that offers short-term loans that can help people manage their cash flow. If you are a new customer you can apply for a loan of up to R4000, with 3 months to pay.

    Existing customers are offered loans of up to R8000 with up to 6 months to repay. For you to apply you need to have a registered active cell phone number, South African ID, your bank account details, and your most recent proof of income.

    They have an easy application process wherein you choose the amount you require, your payment plan, and finally, you will click on apply. Your application will be processed and anything more that is required from you will be communicated with you further. 

    2. FinChoice

    FinChoice is a division of HomeChoice (PTY) Ltd, an authorised financial provider. They offer MobiMoney which is a flexible product wherein you can get up to R10 000 when you need it.

    You will also get access to airtime, data, and electricity 24/7.  You will have to repay the loan over 1 to 3 months.

    The second option they offer is a personal loan that pays up to R40 000 for bigger expenses. You will be required to pay it back over 6 – 36 months. 

    3. Easy Cash Loans

    With Easy Cash Loans, you can get personal loans of up to R150 000 through their easy and quick application form online.

    They do offer their services to clients that have been blacklisted. Once your application form has been filled and submitted, you will immediately find out if you do qualify for the personal loan or not.

    They offer Payday loans wherein you can borrow cash for up to R2 500 of which can be paid within the next couple of months. To qualify, you must be 18+, have a permanent job, be a South African citizen, and have a bank account. 

    4. Fasta

    Fasta is a registered credit provider, it offers an easy application that is 100% self-service.

    Their online application process is fast, simple, and offers access to credit within minutes. They offer loans of up to R8000 which can be repaid over 4 months.

    You will receive the amount you want into your account and the money can be spent anywhere. Like all the other financial providers, you will have to be verified first before confirmation of approval.  

    5. Cobol 

    Cobol has been in operations since 2006, it offers loans from R1000 to R5000 with a flexible repayment plan of up 6 months.

    To qualify you will need to be 18 – 65 years and you will have to pass through credit checks in order to be approved.

    It takes 15 mins for your loan application to be processed and if all is well, the money will be paid into your account the same day.

    Their application process is also done online and can be completed within 5 minutes. The required documents include your latest 3 payslips or latest 3 months’ bank statements. 

    Advantages and Disadvantages of Short-Term Loans

    The advantages of short-term loans are that you will have access to cash quickly, there are no strict requirements, and the greatest of them all is that you will pay less on interest.

    It’s also wise to note the disadvantages; you are only eligible to borrow a small amount, penalty fees can be costly, and dealing with untrustworthy lenders’ can cost you as some can take advantage of you by charging you ridiculous fees and interest rates, so read and understand the service provider’s terms and conditions before you apply and get approved for the loan. 

    Overall, you should only consider short-term loans only if you can afford to pay the required monthly instalment, or else you will default, resulting in a bad credit score and more debts. 



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