Quick Loans in South Africa
Financial convenience is all that we need when we are in the middle of shopping or carrying out our daily activities. There is nothing more disturbing than falling short of airtime, internet bundles, shopping credit, and fuel money when you are expecting to attend to urgent situations.
These are the little things that matter in our everyday living as they help us with facilitating the smooth flow of our lives. The critical part of life is being able to live the way you want, efficiently bypassing these cash shortages on our regular activities.
The quest to facilitating smooth living for clients has led to the development of quick cash services by financial institutions service providers. They developed timeous and straightforward solutions, and these are the quick cash loan products.
What is Quick Cash?
Many people might not have familiarized with the term, but almost everyone could have been a quick cash client at one part of their lives.
Quick Cash loans are mini-financial credit extended to existing clients to allow the later to access or buy services when out of credit, promising that they will pay in the future. The Quick Cash products fall in the same category with quick loans, instant loans, and overdraft system, with a distinction on requirements for the fast cash.
Amongst these products, quick cash is the smallest in amounts and probably the easiest to obtain.
There are two forms of quick cash services. One comes in the form of fast credit, which cannot be withdrawn as cash but used for buying goods or services. The other kind of quick money is the loan which can be removed as cash and get used for other things outside the primary functions of the service provider.
Why quick cash?
The first answer to the use and need for quick cash loan products is to facilitate the convenience in shopping and other personal services that we carry daily.
Imagine yourself shopping at a shop that you usually buy and hold a membership shopping card. Your credit falls short with a smaller amount for you to fill your basket. Knowing that you have a prepaid account where you usually load credit, you will not opt for returning goodies or go out to fetch some cash.
The quick cash products usually are a self-service that a client request for on their mobile phones or computer device before credit is made available. This means that a client or a customer to a company will not need to halt but look for funding elsewhere. The quick cash facility will be available there as a convenient and faster solution.
The quick cash loan solution is also an easy way to obtain additional funding. Due to the issue that fast cash services require less use of mediators, there is no time to wait for the approval.
The quick cash loaning system makes extensive use of USSD codes for making requests. This means the client will work with an automated system that will only allow them to get the credit that fits their credit rating. With this, clients will not experience shortages and unnecessary inconveniences in the middle of obtaining a service.
Where Quick Cash loans are recorded with credit bureaus will give the applicant a super advantage on improving their credit rating. The Quick cash products are smaller than any other type of short-term loan, allowing a client to make a payment without digging much of their budget. These mini loans will enable applicants to have an improved credit rating in an instant as compared to other sources.
Quick cash is also a relevant financial service to these situations. There are some situations when clients experience very small financial shortages. These situations where people will need to bypass quickly without going through paperwork and application hustles. Quick cash services present commercial clients with funding that is relevant to short-term financial shortages. Which gives the people an option to make repayments as soon as they get appropriate funds.
Who offers quick cash?
Quick cash and other forms of personal loans are very much distinct depending on the companies that issue them. Although the quick cash facility is also regulated by the National Credit Regulator (NCR) as a personal credit service, little has been done by the authority to enforce the law.
Companies issue the quick cash facility, sole traders, financial services, and banking institutions that hold valid NCR licenses. The banking sector has not shown much interest in providing quick cash services, but many of them issue quick cash. It’s in the form of overdraft facility to clients who hold good credit rating.
The quick cash loans service is generally issued by shops, registered gambling companies, money transfer companies, and other small micro-credit services providers. Amongst the significant financial institutions, Bayport and Boodle are the most common providers of quick cash loans. These will make sure that their clients access the right financial services in time and convenience, allowing a smooth flow of daily activities.
The providers of quick loan services allow the existing clients to get extended credit that fills the smaller shortages of funds.
What amount is quick cash available?
Due to the reason that quick cash services are available for covering small credit shortages. Many clients experience during service delivery, and the quick cash finance option has remained open in deficient amounts.
The majority of quick cash services will have amounts that are below R1 000. However, there is an exception of a few companies that issue quick cash services to the size of R8 000. These are the firms that issue quick cash in a category of short-term loans in such situations. The quick loan will be having similar requirements to that of all other personal loans.
Does credit scores matter?
Yes, there is a continuous credit rating that quick cash providers do. However when the quick cash amounts involved are small, the credit rating is done internally.
When amounts involved go beyond R500, the clients might be exposed to credit analysis with credit bureaus. Due to the nature of the quick cash services, the credit rating is computed continuously on an automated system that the service provider uses for financial recording.
As a client engages in business with the company, they develop a working history that involves paying financial transactions. These transactions are used to make historical based credit scores.
The credit score is built based on the performance of an account that a client already holds. It is this credit rating that will show the client the amount limits obtainable for quick cash services. In such an event, the client can request to have the credit service extended to them; in an instant, the funds will be available for use.
Credit rating with credit bureaus might be performed at the initial stages when the client will be joining the company’s clientele base. This is when all the documents and information will be collected, from there onwards, it is the actual transactions that are used to build up a credit profile.
What is the cost of the quick cash?
There is a larger distinction between the costs involved with all other form of personal loans with those of quick cash services.
The quick cash facility does not make use of initiation, service fees and administration costs. That is, there is no initiation since the applicant would have been existing client with the company, where there is known history. Due to the fact that the quick cash service is done by clients on a self-service, there is no need for administration and service fees.
However, Interest rates remain a comprehensive element for all personal loan services.
The quick cash use interest rates that are similar to those of short-term loans. The quick cash system uses similar interest rates for all amounts. The difference in interest rates can be found on loans of different repayment terms. The quick cash service providers are obliged to abide by the interest rates provided by the NCR, these rates should not go beyond 5% per month or an effective rate when the period is smaller or bigger than a month.
In addition to interest rates, it is very much often for clients to be charged with penalties or late payment fees. The reason behind that is, most clients forget their quick cash debt, allowing it to go beyond the agreed date of repayment. In situations like these, penalties and late payment fees might constitute a larger component of costs.
For example, when a client is extended with an overdraft facility to spend additional R300, to repay over a period of two weeks and the client fails to repay. The late payment and penalties might be charged at 10% per day on a compounded rate.
Lenders offering Quick Loans in South Africa
Informative books on Quick Loans in South Africa
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