Compare rates for personal loans under R6000 in South Africa. These small loans are designed to quick cash emergencies but at a high-interest rate.
In this article
The lowest personal cash loan offering in South Africa.
These loans are tailored to meet your expense shortfalls during the month.
They are popularly known as payday loans in Mzansi, meaning you’ll repay the loan in full by your next salary date.
Let’s dive right in.
Loan Rates Under R6000
What You’ll Need
You’ll qualify for the personal loan under R6000 with your income and credit score rating.
Obviously, your credit score rating is the most important factor in telling the lender the type of borrower you are.
Each loan application must be accompanied by the following documents:
- Certified copy of your ID;
- Latest bank statements;
- Recent payslips;
- And proof of residential address.
Lenders process personal loans under R6000 differently and may require additional documents that’ll help them with the approval decision.
As indicated, these are high-risk loans since you’re expected to pay them back in full end of the month.
It also proves the lender has taken the risk to borrow you the money in the first place.
So you’ll be charged a higher interest rate for your loan under R6000. However, this will differ between lenders and your credit rating score.
The average interest rate for payday loans is 30% plus the initiation and service fees.
Debt Repayment Calculator
Not sure how much it’ll cost to borrow money from any bank or lender in South Africa? Use free personal loan calculators to play around with your possible interest rate and estimate the monthly installment and overall principal amount.
Beware of Scammers
Often, people that are getting this kind of loan, they didn’t have any other option to handle financial emergencies.
So loan scammers seem to target those because they assume you’re desperate for the money.
A common loan scam is having an unregistered lender promise you money at the lowest interest rate when banks can’t help you.
So be very careful about who you take personal with because not everyone out there has your interest at heart.
And lastly, before agreeing on the loan, check the finer details because some lenders may charge excessive rates that are not regulated by the National Credit Act.