Your Comprehensive Guide to ShortTerm Loans

South Africa, welcome to Swift Banker! Our goal is to ensure that you are equipped and can make the right financial decisions. Whatever cash crunch you find yourself in, unexpected bills or any other financial emergency you might need to meet, Swift Banker strives to make choosing the right loan short term for your situation simpler and more straightforward.
This guide will give you all the information you need about short term loans South Africa so that you can be equipped to navigate your own finances and make the right choice with full confidence.
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R 2100.19
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R 26011.17
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R 126011.17
9.93 %
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*Representative example: Estimated repayments of a loan of R30,000 over 36 months at a maximum interest rate including fees of 27,5% APR would be R1,232.82 per month. Swift Banker is an online loan broker and not a lender. Our service is free, and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants' credit score and other factors at the lender's discretion.

Loan amount R100 - R250,000. Repayment terms can range from 3 - 72 months. Minimum APR is 5% and maximum APR is 60%.

What Are ShortTerm Loans?

Short term loans are financial solutions specifically aimed to help you deal with an immediate need for money. The loan period can range from 3 months loans to 6 months loans, from a few hundred Rands up to several thousand Rands. Short term loans are especially useful in situations when you need some cash quickly, for example, to cover something unexpected or to make it to the next paycheque.

Types of ShortTerm Loans Available in South Africa

There are several types of short loans available to South African borrowers:

1. Payday Loans:

A payday loan is a small amount – usually about R500 to R5,000 – that you can use for emergency expenses but need to pay back on your next payday. Unfortunately, this type of loan is often paired with very high interest rates, usually up to 5 percent per month (after fees), which makes the APR (Annual Percentage Rate) very high.

2. Personal Loans:

These are also short term but available from banks and online lenders. Typically, they range from R1,000 to R50,000, though repayment lengths can be longer and interest rates lower than those of payday loans. They generally have an APR of 12%—27%, depending on the lender and your credit score.

3. Merchant cash advances:

They advance you some of your future turnover and you repay on a percentage of your daily takings. Such loans charge fees expressed as a factor rate (e.g., 1.1 to 1.5), so an R10,000 advance at 1.2 will cost you R12,000.

4. Credit Card Cash Advances:

These involve taking out cash at stores with a credit card, usually up to the card’s limit. Typically, you will pay a high APR of 24 percent plus a 3-5 percent cash advance fee for each withdrawal.

5. Invoice Financing:

This type of finance allows a business to borrow an advance on invoices still to be paid. It typically costs between R5,000 and R500,000 and usually costs 1-5 percent of invoice value each month.

ShortTerm Loan Lenders in South Africa

Registered credit providers are required to cater to the varied credit needs of all South Africans and include banks, credit brokers and online lenders. Banks typically offer a broad range of financing solutions with relatively strict conditions for approval. Credit brokers act as matchmakers, facilitating the connection between clients seeking credit and suitable loan products on the market offered by various lenders.
Online lenders tend to approve loans short term at the touch of a button, usually with less rigorous application conditions attached. Together, these sources help to ensure that consumers have a wide range of credit options available to meet their financial needs.

Short Term Loans and Your Credit Score

The lender must do your credit check, but you will need to have a permanent job. There’s no complicated paperwork needed. Your credit score can make a big difference in whether your payday loan is approved and what interest rate you receive.
Making timely repayments on these short term loans can boost your score, and missing a payment makes it plummet. Although some lenders offer short term loans bad credit, you should be careful, as they often carry very high interest rates.

Payday Loans

Payday loans are the quickest way to get easy cash. They are paid back in full by your next pay and have high interest and fees. They can range from R500 to R5,000.
When one goes to get a payday loan, they give the lender the following:
  • Payslips
  • Your ID book
  • Bank statement
  • Proof of residence

Benefits of Payday Loans

Quick Approval:

Often approved within minutes.

Minimal Requirements:

Usually only need proof of income and a bank account.

Drawbacks of Payday Loans

High Interest Rates:

They are extremely costly if not repaid on time.

Short Repayment Period:

Must be repaid by your next payday, which can be challenging.

Even worse, defaulting on a loan can lead you to civil court. Lenders may also hire a debt collector. When you borrow from unregistered providers, they may repossess your goods or extort money from you without going through the courts. If you’re looking for quick cash, always deal with registered providers.
Never take a payday loan without first weighing all your options. Swift Banker makes comparisons of payday loans south africa easy for you. It shows you the interest rates and fees so that you can make an informed decision, choosing the payday loan that best suits your needs while minimizing costs and potential pitfalls.

Payday Loans Online

With the advancement in technology, payday loans can be obtained through the Internet. This convenience is not without its advantages and disadvantages. Some advantages include the ability to apply for payday loans online from the comfort of your home and the fast process, including approval and transfer of funds.
However, there are also disadvantages. Visitors have to be wary of fake websites as scams arecommon. Additionally, given their convenience, you can expect to pay higher interest rates and charges for payday loans.

Short term Loans Online

Besides payday loans, there are several other options for online short term loans. Applications can be completed in a matter of minutes, and cash can be transferred to your bank account as fast as the lender can give the green light, whether it’s a personal short loan, a cash advance, invoice financing or something similar.

Steps for Applying for ShortTerm Loans Online

  • Fill in an online application form with an email address and phone number.
  • If you meet the data requirements, you will get loan offers.
  • Simply select a loan, digitally sign to accept the offer, and wait for the lender to review and approve the loan.
  • After you get approval, the lender will transfer the cash directly to your bank account. It usually arrives the same day or the next business day.

Frequently Asked Questions (FAQs)

The answer depends on what you are trying to accomplish and what your financial situation is. For example, payday loans are great for small, short term needs, but a merchant cash advance could provide increased cash flow for your company.
The two main risks are a high interest rate and the possibility of a debt cycle. Borrowers could default on paying the loan back, which could lead to more interest and less money for the people having to repay the loan.
Short term borrowing rates in South Africa typically range from 5 to 60 percent per annum. They largely depend on the lender and the borrower’s specific credit rating.
As the name suggests, short term loans are designed to cover immediate out-of-pocket expenses within a year and typically have higher interest rates.
The main advantage of a short term loan is that money is provided immediately to overcome the sudden occurrence of unexpected expenses and the need for urgent, immediate funding.
The maturity period for a short term loan ranges from a few weeks to a year. Of course, the exact period may differ depending on the loan type and the terms and conditions set by the lender.
If you cannot repay a short term loan on time, the amount you owe can rise quickly through late fees, interest rate increases, and negative effects on your credit record.
It is possible to find a short term loan for bad credit, but you will most likely have to pay higher interest rates and face tighter loan terms. Some lenders offer short term loans for low credit score, but they are difficult to find.
Making timely repayments on bad credit short term loans will help improve your credit score, but missing those repayments will negatively impact it.


At Swift Banker, we want to give you the information you need to make well-informed financial decisions. A short term loan can be a valuable tool for covering emergency expenses, but you need to know which type of loan is best for your needs, what fees are involved, and how the loan will affect your credit.
Check out Swift Banker for a personalized loan comparison or to find out more about short term loans in South Africa. Take control of your finances today.