What is a payday loan?

Payday loans are a small cash advances designed to tide you over until your next pay day. These cash loans are typically approved on the day that you apply and are repaid in manageable instalments with fixed interest rates.

Yes, our lending decisions are based on many things. The most important being a secure income and the ability to afford the loan repayments in a sustainable manner.

What marks us out as different from other lenders is that we will consider all circumstances when deciding whether or not to lend. Some of our most trusted customers have previously defaulted on previous credit agreements and have been refused credit by several other lenders. We will actually take the time to consider your circumstances and whether we can work out a suitable loan with manageable repayment options.

However, we will run credit and affordability checks on all new customers and we will not accept anyone who has been declared bankrupt.
To qualify for a loan, you must be a South African resident over the age of 18 at the time of applying, be in either part or full time employment, and get paid regularly. You must also be able to provide identification, bank account and income details.
Once you have been accepted for a loan and digitally signed your credit agreement we will send the funds to your bank account. If you’re a Standardbank customer you will receive your loan within minutes of signing this agreement.

You may experience longer lead times due to weekends and public holidays.
The vast majority of our loan repayments are automatically taken from your bank account on the scheduled repayment date.

Alternatively, if you wish to pay us directly via a bank transfer you can do so by sending us an email.
This will depend on how you use our service.. Repaying credit agreements on time and having access to credit is always good for your credit score. However, it's important to remember that taking several short-term loans could be harmful to your credit file, as It could show other lenders that you are reliant on borrowing to manage your finances.

If you take out a loan and miss payments, or default on the loan, this will also have a negative effect on your credit score and may prevent other credit providers from lending to you.

It's also important to consider that some Mortgage providers may look unfavorably on any mortgage application if you have existing or recently paid of Short-term loans.
It normally takes around 15 minutes to apply online. If you meet our criteria we will aim to have someone from our Customer Care Team make a decision with 24 hours of submitting your supporting documentation. This will include running credit and affordability checks and reviewing payslips, bank statements and proof of address. If the whole process runs smoothly we aim to have the money in your account within 48 hours of your initial application.
Between R1 000 and R4 000. We do not encourage you to apply for more than you can afford to repay as we will run an affordability assessment on all the loans we give.
Yes, but your ability to borrow again will depend on many factors, including how well you managed to repay your last loan. In any case repeat borrowing will be subject to a credit check and affordability assessment. Your credit limit may increase or decrease for return borrowing, and again will be subject to many factors which we put in place to ensure we are lending responsibly and treating you fairly.

Our payday loans are intended for occasional use only and should not be used by customers to manage existing debt. It is important to remember our short term loans are not designed for long term borrowing and is not the cheapest option. We encourage you to think carefully before committing to any form of credit. We will continually review your lending pa􀆩erns to ensure that short term borrowing is in your best interest.
You can borrow for up to 32 days. We have designed our loans to be flexible for all of our customers and we will work with you to create a loan that suits you and your financial circumstances.
Yes, a Soft Search using a Credit Reference Agency (CRA) will be run at the outset of the application. This will give us an idea of whether we can look to proceed with the application or not. This search will not show up on your credit file as a mark or negative factor but rather aid us in our decision making in a less intrusive manner.

If the applicant is pre-approved a Hard Search will be run using a CRA. Please note that this will appear on your credit file for other credit providers to see.

We will also run Soft Searches on returning customer applications.
We understand that from time to time customers may have a change in circumstances affecting their ability to repay their loan in a sustainable manner. If this is the case our Customer Care Team will work with you to resolve the problem.

If you think you may struggle to pay back your loan you should contact our Customer Care Team prior to the repayment date with details as to why you may have problems repaying the loan. Please do not take a loan from Paydayloan.joburg if you do not think you can repay it on the repayment dates. Doing so may result in you incurring extra default and recovery costs as well as damaging your credit history.
The amount of interest you pay will depend on how much you borrow, and how long you borrow it for. As a rule of thumb the daily interest rate drops as the length and size of the loan increases. However, you will generally pay more in interest if you take a larger loan out over a longer term.
Annual percentage rate (APR) represents the interest and fees used to repay a loan, calculated on an annual basis. This percentage may seem high if borrowing for between 7 and 32 days, but it is important to remember that APR is primarily used for the home loan market, and is quite useless in determining the true cost of a short term loan.

For instance, if you borrowed R100 from us for a week, you would need to pay back R105.60. However, the APR on this would work out a 1614%, but in reality you would never get near to paying over 1600% in interest. As a rule of thumb the shorter the lending period the greater the APR, but do not let the media confuse you into thinking that you will actually pay back thousands of percent in interest.
Yes as long as you are able to prove your income.
Yes, and you will only be charged interest for the days you borrowed. You would need to contact us if you would like to do this.
We pride ourselves on our responsible credit practices and lending guidelines and therefore we cannot guarantee that your application will be approved if you have a bad credit record, for example. Each request is assessed by an automated system to determine whether applicants will be able to meet the repayments over the proposed loan term, helping us reach the right decision quickly. It’s worth remembering that becoming clear of existing debt and making repayments on time is a positive way to attempt to repair bad credit ratings.
• Complete the application with care
• Be honest
• Choose your lender carefully
• Check your credit score
• Only borrow what you need
• Respond quickly
• Improve your credit score
As an FCA authorised lender, we ensure we lend responsibly from start to finish. To avoid disappointment, take a look at our minimum lending requirements before beginning your payday loan application:
• You must be at least 18 years old
• You must be in full or part-time employment
• You must be a holder of a South African bank account
Before applying for a payday loan online, it is important to read reviews, check the credit term and compare the different credit options available to ensure you’re selecting the right product for you. Payday loans aren’t the cheapest credit options available, but they are helpful when you’re in an emergency cash situation and need funds quickly. They can offer affordable access to cash, providing you stick to the credit terms and clear the debt within the pre-arranged timescale.

When you need a fast loan and have a bad credit history, short-term loans may be an attractive option. However, it’s vital that you consider all credit options and loan products available to you, including monthly and weekly instalment loans, overdrafts or personal loans before applying for payday loans, as they may be cheaper.
Payday loans and bad credit loans are best used for one-off situations between wages, such as an unexpected bill or necessary appliance repairs. For more long-term requirements, you may be better off checking out other credit options such as bank overdrafts or guarantor loans. It’s important to be wary of lenders with bad customer reviews, however.

Checking credit providers’ customer reviews is an important step when looking for loans.
When looking for a payday loan online, it is important to do your research and compare different credit deals to choose the best arrangement for you. To avoid a bad borrowing experience, you should compare interest rates, check for hidden fees, read customer reviews and ensure you can afford the repayments.

When making a comparison, it pays to consider how flexible lenders are, whether you will be expected to make repayments weekly or over a number of months and how much you will have to pay in fees if you default. We have plenty of excellent reviews from happy customers, borrowers know they can trust us as experienced lenders offering quick cash and reasonable fees.
If your financial circumstances change and you have an outstanding balance on one of our short term loans – we’re here to help. But please contact us directly.
Failing to repay your loan could result in extra fees, such as late payment penalties, and higher interest charges being applied to your account. However, if you contact us as soon as you realise you may not be able to make a payment, we can help. We’ll work with you to create a payment plan so that you can meet your repayment obligations and avoid higher costs and damage to your credit record.
Payday loans and credit cards are very different. Credit cards are usually used to cover daily and ad-hoc costs, with the cardholder repaying either the full balance or a minimum payment on a monthly basis. Payday loans, on the other hand, should be used for one-off expenses that won’t wait until payday.

Payday loans tend to have higher interest rates than credit cards but credit card debt can also be very expensive. This is especially the case if you don’t repay your full balance each month and interest is applied to an ever-growing credit balance.
Payday loans are also usually relatively small amounts, while credit card limits usually mount up to thousands. Repayment for payday loans are made in one lump sum. Credit card companies only require a minimum payment to be made each month, but keeping to this model means your balance accrues interest month after month, which can be very expensive.
Both credit cards and payday loans come with risks. If you fail to keep up with arranged payments, you risk damaging your credit record and amounting charges and fees.
Payday loans and short-term loans are often one and the same. Short-term loans are unsecured loans repayable over a short period of time – usually up to six months. ‘Payday loans’ is just another term for short-term loans, but is, perhaps, more applicable to loans that need to be repaid in a single instalment on the borrower’s next payday, rather than a flexible instalment loan repayable over several months.
Payday loans and short-term loans are often one and the same. Short-term loans are unsecured loans repayable over a short period of time – usually up to six months. ‘Payday loans’ is just another term for short-term loans, but is, perhaps, more applicable to loans that need to be repaid in a single instalment on the borrower’s next payday, rather than a flexible instalment loan repayable over several months.
• Easy and quick application
• Payday lenders often have less strict lending criteria compared to other loans
• These loans are often available to people with less than perfect credit scores who struggle to find more traditional unsecured loans
• They are unsecured, which means you don’t need to offer property or valuables to secure them
• They are relatively expensive with high interest rates due to higher risk for lenders
• They come with risks to the borrower, as late payment fees and interest is applied if you missed payments.
• Payday loans don’t benefit your credit score
• You can only borrow limited amounts over shorter periods of time
• Other forms of credit, such as overdrafts, credit cards, bank loans and secured loans – although these may work out more expensive, so do your research
• Work on budgeting and controlling spending so that you can afford items without taking out credit.
• Take extra shifts/jobs to try to bring in more cash to cover emergencies
• Consider asking friends and family for a loan
• Sell your unwanted items to cover unexpected one-off costs.
The best way to avoid having to take out payday loans in the future is to become a master at budgeting. Creating a detailed budget, which takes savings into account, will help you to build a financial buffer for when times get tough. Older generations called this ‘putting something away for a rainy day’ and it totally makes sense.

And it’s never been easier! Budgeting apps can help you to devise a budget that works for you and you can even track your spending on your mobile device with useful spending apps that are easy and fun to use. Building a good credit score by servicing any debt you do have along the terms set out in your credit agreements will also help you to have more options next time you want to take out a loan. Providing you never miss a payment, retain low credit utilisation levels (avoid maxing out overdrafts and credit cards) and borrow sensibly, you can recover your credit score within a few years.