What are Short-Term Loans? How to get them?

A short-term loan refers to money that is borrowed for a short period. Short-term loans are further divided into various types, in which quick loans are on the top because they are required to be repaid within 6 months, and traditional short-term loans are required to be repaid within one year. A short-term loan is available when one does not need a heavy amount to avail; instead, these loans cover R3,500 to R500,000. 

If you are facing a financial crisis and are unable to see any light of hope, you can avail an opportunity to get a loan for a short period. There are various companies offering short-period loans, including Arcadia Fiance, Retail Capital, Bright On Capital, and Cash Flow. Come with me to explore how you can get a short-term loan from these sources. 

Types of Short-Term Loans 

Payday Loans 

A common type of loan is a Payday loan which is designed to provide immediate financial rescue. As the name suggests, a borrower is expected to pay the loan on the day he will receive his salary. Payday loans are available to a large number of South Africans due to their features. 

Features 

• Loan Amount: A person can avail from R500 to R8,000. 
• Approval Speed: The loans are approved within a few hours.
• No Paperwork: A borrower is not expected to sign hundreds of papers nor he need to provide several proofs. 

Eligibility Criteria of Payday Loans 

• An applicant must be at least 18 years old. 
• An applicant must have a valid ID document that is issued by the government. 
• An applicant must be a resident of South Africa. 
• An applicant must have an active bank account. 
• An applicant must have a clear loan history. 
• An applicant must have a consistent income source.  

2. Personal Loans 

Another type of short-term loan is the personal loan which one can avail within a few working days. The difference between Payday loans and personal loans is that these can be used for a list of purposes, such as medical treatments, repairments as well as for education. Another difference is that the personal loan process of approval is different compared to Payday loans. 

Features 

• Loan Amount: An applicant can get R1,000 to R50,000. 
• Repayment Duration: The duration of repayment is 3 months to 24 months. 
• Approval Speed: The approval of the personal loans takes 2 to 3 working days. 

3. KwikAdvance 

Another commonly known type of short-term loan is KwikAdvance which allows a person to get a loan as soon as possible. These loans are suitable for people who need money immediately and can repay the loan amount within a few days. The repayment method duration is determined by the finance company that is offering a loan. 

Features 

• Loan Amount: The amount of the loan is up to R4,000. 
• Repayment Duration: A borrower has to repay the loan amount as soon as possible. 
• Approval Speed: KwikAdvance loans are approved within a few hours. 

Which Companies Offer Short-Term Loans?

Various companies are offering short-term loans to the people in the top ones are explained below. These companies are trusted by the national institutes and associated with major banks in South Africa. Come with me to see the companies offering short-term loans, how they work, and their application process. 

Arcadia Finance  

The top company that is offering various short-term loan programs is Arcadia Finance. It is known for the credibility and the trust of national institutes. Arcadia Finance offers loans from R100 to R250,000. If a person meets the eligibility criteria of the Arcadia Finance loan program, he can get it. 

Features 

• Loan Terms: The period of repayment is from 6 to 18 months. 
• Application Fee: There is no application fee at Arcadia Finance. 
• Application Approval: The application approval takes time depending upon what type of short-term loans you are availing. 

Eligibility Criteria

• An applicant must be at least 18 years old.
• An applicant must have a valid document of ID issued by the government of South Africa. 
• An applicant’s loan amount should not exceed his 8 times monthly income. 

Application Process 

Step 1: Go to the official website of Arcadia Finance through the link provided below. 

Arcadia Finance Official Website: https://www.arcadiafinance.co.za/ 

Step 2: Fill out the application form that is available on the screen by determining the loan amount and monthly repayment.

Step 3: Tap on the Apply Now button and review the terms and conditions. 

Step 4: Provide further details and submit the loan application. 

Step 5: If you meet the eligibility criteria, you will receive a loan amount.  

Retail Capital

Another reliable source for loans is Retail Capital that offers several types of loans in which short-term loans are on the top. The reason why I prefer Retail Capital is because it is trusted by all the government institutes. Furthermore, the interest rates are low and the repayment duration can be extended if the borrower is unable to pay the loan back to the company. One can avail R50,000 to R10 million loan.

Features 

• Application Approval Speed: The loan is approved within 48 hours. 
• Loan Terms: The period of repayment expands from 6 months to 18 months. 
• Application Fee: Retail Capital does not charge for applications for loans. 

Eligibility Criteria

• An applicant must have a valid ID document. 
• An applicant must have a valid bank account. 
• An applicant must have a clear loan history. 
• An applicant must be at least 18 years old. 

Application Process

Step 1: Go to the official website of Retail Capital through the link provided below. 

Retail Capital Website: https://www.retailcapital.co.za/ 

Step 2: Scroll down and click on Apply Online. 

Step 3: Fill out the application form and upload the required documents. 

Step 4: Click on the Submit button and verify your account. 

Step 5: If you meet the eligibility criteria, you will receive a loan. 

Bright On Capital 

Bright On Capital can become your savior if you need a loan. It offers various types of short-term loans in which the KwikAdvance loan scheme is the best one. The eligibility criteria of  Bright On Capital are simple and the application process is quick. One can apply within 2 to 5 minutes if he has a strong internet connection. 

Features 

• Loan Amount:  Bright On Capital allows you to avail R3,500 to R50,000. 
• Loan Terms: You need to repay the amount of the loan within 3 to 18 months. 
• Application Fee: There is no application fee, so you can apply fearlessly. 

Eligibility Criteria

• An applicant must have a valid ID document. 
• An applicant must have an active bank account. 
• An applicant must have a consistent source of income. 
• An applicant must have a clear loan history. 
• An applicant cannot apply for a loan more than his repayment capacity. 

Application Process

Step 1: Go to the official website of  Bright On Capital. 

 Bright On Capital Official Website Link: https://www.brightoncapital.co.za/Apply/applynow

Step 2: Fill out the application form and check the boxes at the end of the page. 

Step 3: Click on the submit button and then verify your account. 

Step 4: Submit your application and you will receive a confirmation mail that your request has been received. 

FAQs 

Where can I borrow money immediately in South Africa?

There is a list of sources where you can apply for a loan, such as banks and online platforms, including Arcadia Finance, Retail Capital, or Bright On Capital. 

Can I get a loan in South Africa as a foreigner?

Yes, you can apply for a loan as a foreigner in South Africa. You can visit the banks or apply at the online platforms. 

What is the maximum interest rate for a short-term loan in South Africa?

The maximum interest rate for a short-term loan in South Africa is 5%. 

Which loan is easiest to qualify for in South Africa?

The easiest loan to qualify for is the personal loan because one does not need to do long paperwork and the eligibility criteria of the personal loan is simple. 

Final Words 

Instead of suffering from financial calamities, you can get a short-term loan that you can return after 3 or 6 months. The loan amount will not only help you deal with budget problems, but it will also provide you an ease of mind. There are various ways to get a short-term loan but one must have a consistent source of income to ensure the loan provider that he is eligible to repay the loan as well as a clean loan history. If you need an immediate loan amount, you can follow the guidelines that I have explained above.