Payday Loan Alternatives to Wonga in South Africa
Wonga was a popular payday loan provider in South Africa that offered quick access to short-term loans. Wonga ceased operations in 2018, leaving many customers searching for viable alternatives. Fortunately, there are several reputable lenders offering payday loans similar to Wonga across South Africa.
This comprehensive guide compares the top payday loan options to consider if you previously used Wonga. We will cover loan amounts, repayment terms, interest rates, eligibility criteria, and the application process among other details.
Also See:
List Of payday loans South Africa no credit check
Top 10 Payday Loans in South Africa
A List of Payday Loans in Gauteng
List of Payday Loans South Africa bad credit
Overview of Wonga Loans
Let’s first recap what made Wonga loans appealing to customers:
- Loan amount: Up to R15,000
- Term: 1-6 months
- Rate: 5%-32% interest per month
- Use: Personal expenses, emergencies
- Requirements: 18+ years, income >R1500, SA bank account
Wonga offered convenient access to short-term loans through an easy online application process with minimal eligibility criteria. Let’s explore similar alternative payday loans available.
Top Wonga Alternatives to Consider
Capfin Loans
Capfin offers flexible loans from R500 to R15,000 with 3-6 month terms.
Loan Amount: R500 to R15,000
Repayment Terms: 3-6 months
Interest Rate: 5% per month
Highlights: Quick payouts, transparent costs, fully online process.
Real People Personal Loans
Real People loans range from R500 to R20,000 with 1-12 month repayment.
Loan Amount: R500 to R20,000
Repayment Terms: 1-12 months
Interest Rate: 3.75%-32% per month
Highlights: Flexible terms, rewards program for repeat borrowers.
UnsecuredLoans4U
UnsecuredLoans4U offers unsecured loans from R500 to R10,000 with 1-6 months of repayment.
Loan Amount: R500 to R10,000
Repayment Terms: 1-6 months
Interest Rate: 5%-15% per month
Highlights: Various loan types, fast approval, online application.
Quick&Easy
Quick&Easy provides short-term loans up to R8,000 with 1-6 month terms.
Loan Amount: R500 to R8,000
Repayment Terms: 1-6 months
Interest Rate: 5%-10% per month
Highlights: Paperless applications, flexible repayments, no early settlement fees.
Loan Amounts Offered
Most Wonga alternatives offer loans ranging from R500 up to R15,000 or R20,000. The maximum you can qualify for depends on:
- Your disposable income
- Existing debts and credit profile
- Lender’s policies
Analyze your budget to determine the ideal loan amount required to cover your needs. Borrow only what you can reasonably afford to repay.
Repayment Terms
Wonga style payday loans have shorter repayment terms of 1-6 months typically. Some key terms to expect:
- 1 month – Suitable for smaller payday loans.
- 3 months – Average term for payday loans up to R5000.
- 6 months – Allows more time to repay larger loans.
- 12 months – Offered on higher-value personal loans.
Compare options to choose a comfortable repayment period that aligns with your salary cycle. Avoid very short 1 month terms if possible.
Interest Rates and Costs
Payday loans have higher interest rates than traditional loans. Expect rates of:
- 5%-15% interest per month
- 60%-180% Annual Percentage Rate
Besides interest, also consider:
- Initiation fee: Up to R150
- Service fee: R50 per month
- Credit life insurance: R7 per R1000 borrowed
Always confirm full pricing details upfront so you understand the total costs. Compare quotes from multiple lenders.
Eligibility Criteria
To qualify for a payday loan similar to Wonga, you’ll need:
- 18+ years age
- South African citizen/valid ID
- Monthly income >R1500-R3000
- 3-6 months in current job
- Active bank account
Some lenders may also request:
- Proof of income/payslips
- Residential address proof
- Existing loan statements
- Credit report
Meeting the eligibility criteria makes getting approved easier. Having a good credit score improves your chances further.
Application Process
Applying for Wonga-style loans is straightforward:
- Online application – complete a quick form with your details.
- Document submission – upload required documents like ID, pay slips etc.
- Verification – the lender confirms your details.
- Decision – loan decision provided within hours.
- Loan payout – amount deposited to your account once approved.
- Repayment – repay in monthly installments by debit order.
The entire process is completed digitally in just a few days.
Pros of Payday Loans
Payday loans similar to Wonga offer certain benefits:
- Quick access to cash
- Convenient online applications
- Fast approval decisions
- Few or no paper forms
- Minimal eligibility criteria
- Unsecured – no collateral required
- Suitable for pressing needs and emergencies
Cons to Consider
However, payday loans have drawbacks:
- Very high interest rates
- Expensive for long-term borrowing
- Bad for debt consolidation
- Easy to fall into debt traps if used irresponsibly
- Not a permanent financial solution
- Can negatively impact your credit profile
Conclusion
In summary, Capfin, Real People, UnsecuredLoans4U, and Quick&Easy represent the top payday loan alternatives to consider if you previously relied on Wonga. They provide quick access to short-term loans through easy online applications. Be sure to compare interest rates, costs, repayment terms, and lender credibility before applying. While payday loans offer convenience, use them sparingly for one-time needs, not as a regular income supplement. Make sure to repay your loans on time to avoid spiraling into debt.
FAQs
Q: Are there payday loans without credit checks?
A: Most payday lenders do not perform intensive credit checks. However, they consider proof of income, existing debts, and banking history to assess repayment ability.
Q: How fast can I get a payday loan?
A: Online payday loans can deposit funds within 1 day of successful application. Some direct lenders approve and disburse loans within hours.
Q: Can I get a loan if I’m blacklisted?
A: If you are currently blacklisted, your loan options are limited. However, some payday lenders may still approve you based on income, affordability, and other criteria.
Q: Is Capfin a direct lender or broker?
A: Capfin operates as a direct lender, meaning they directly provide the loans to borrowers. They are not a lending broker or intermediary.
Q: How do I improve my chances of getting approved?
A: Having a good credit score, moderate existing debts, stable income, and accurate application details help improve your chances of loan approval significantly.
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