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The best loan apps in south africa offer a variety of options for those who need to borrow money quickly. They are safe and secure, and you can pay back what you borrow within a month.
Some of these loan apps require that you be employed and earn a monthly income. Others allow you to apply online and have the funds credited directly into your bank account.
Cash Converters
Cash Converters is a second-hand goods retailer that also offers personal loans. Its small loan amounts start at $400 and go up to $4,600 with funds appearing in your bank account on the next business day. Loan terms and costs vary by location and loan type.
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Cash Converters was recently investigated by the Australian Securities and Investments Commission (ASIC) for its small-amount credit contracts. The company has agreed to a series of commitments as part of an Enforceable Undertaking to improve its compliance and risk assessments for these products.
The company has started using Marin Software to manage bidding and reporting. Its centralized system allows Cash Converters to maintain target CPCs and CPAs while saving time on manual reporting. The system also provides insights into bid strategies and enables them to adjust campaigns as needed.
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Yalu
Yalu is an insurtech startup focusing on credit life insurance, which covers a consumer’s debt should they be unable to pay due to retrenchment, death, or disability. Credit providers typically require that consumers take out this cover on products such as personal loans, home loans, and credit cards.
Yalu’s insurance is affordable, with premiums starting at less than R2 a day. It also offers flexible payment options, and one policy covers multiple credit facilities.
Founded by Ntuli and Nkazi Sokhulu, both formerly executives at FNB Life, Yalu was established in late 2017. It is currently operating in South Africa.
See how Yalu compares to its competitors in the tech landscape. Get expert analysis, in-depth private company data, and a platform that brings it all together.
Lime
Lime is one of the world’s most popular scooter rental companies, operating a fleet of online loans that don’t require documents 120 000 in cities around the globe. Users can use the app to find a scooter, unlock it, and ride away. There are different pricing options depending on location and vehicle type, with a flat rate to unlock the vehicle and then a per-minute rate during the ride.
To help customers keep track of the cost of a ride, Lime recently launched an updated subscription service called Lime Prime. For $6 a month, the company will waive all of the unlock fees when you reserve an e-bike or scooter. It will also plant a tree for every new Prime signup through mid-July. The new program is a good option for people who want to reduce their carbon footprint.
Finchoice
Finchoice is a financial service provider that has a variety of loan products. These include KwikAdvance, Flexiloan, and a personal loan. These loans are available to South African residents and can be repaid over 6, 12, or 24 months. They also offer a Personal Protection Plan that covers your loan payment in the event of disability or death.
KwikAdvance is a quick-access loan that is available to those who need cash before their next payday. This type of credit is ideal for covering expenses that aren’t covered by your salary, such as a medical bill or car repair. This service offers flexible repayment terms, and you can reallocate your payments between paychecks. In addition, the service also includes a funeral cover policy that protects you against unexpected expenses.
RainFin
RainFin is a locally grown, peer-to-peer marketplace that connects borrowers and lenders. It offers loans backed by valuable assets, such as cars and property, which can reduce the lender’s need to check a borrower’s credit history. Its loans are usually cheaper than those of traditional banks. However, it’s important to use caution when seeking no-credit-check loans. Borrowers should carefully review the terms and conditions before signing any agreements.
RainFin is a South African money lending market place that matches borrowers with investors without the traditional costs or barriers. The site reportedly has 350 new customers register each day, with only 10% of them qualifying to borrow or lend after extensive credit vetting. It lists 18 new loans with a value of around R7 500 000 each day.
Peer to peer lending
This is a relatively new form of credit that cuts out large banks and their fees. Borrowers list their needs and investors then decide whether to fund them. This can be used for a variety of purposes, including home improvements or debt consolidation. One such company is RainFin, which launched in 2012 and aims to remove barriers to credit for South Africans.
The application process is streamlined and often takes only a few minutes to complete. The lender will use soft inquiries that don’t affect your credit score to conduct pre-approval screenings. If you’re approved, you can receive your loan funds within a few days. Most borrowers choose to pay back the money in fixed monthly payments. This keeps interest rates low for borrowers.