Emergency loans for people in South Africa come in the form of the following:
- Bad Credit
- Bank Loans
- Blacklisted Finance
- People under Debt Review
- Business Funds
- To pay rent
There are times in life when we need to borrow money quickly. You may want to get fast approval on a loan application. Therefore this is where a fast lending solution comes in handy.
So lets take the emergency loans we list above and break down the various options one by one.
Emergency Loans for Bad Credit in South Africa
To get an emergency loan with bad credit in South Africa you need goods to use as security.
For instance you can’t simply visit a Capitec Bank and ask for an emergency loan when you have bad credit. Because it doesn’t work like that.
Therefore you need to have more of a plan. If you own a car for example, that is a personal item you can use against borrowing money for a loan.
If you don’t own a car, you have bad credit but you only need a small cash loan then you can consider pawn shop loans.
Pawn shops allow you to borrow small cash loans against your personal items.
These types of loans require no credit check or proof of income.
You can find out more about this kind of borrowing here: Loans at Shops in South Africa – We Compare
Banks for Emergency Loans in South Africa
Emergency loans are available in South Africa at the following banks:
- Absa Bank
- African Bank
- Bidvest Bank
- FNB – First National Bank
- Standard Bank
Please Note: The banks we list above are registered credit providers. Therefore they are governed by South Africa’s National Credit Regulator – You can visit the NCR website here.
Because of this, people who have bad credit or are blacklisted may struggle to get approval for an emergency loan at the banks.
Emergency Loans for Blacklisted People
The best emergency loans for blacklisted people are:
- Secured Loans
- Pawn Shop Loans
- Peer to Peer Lending
- Borrow from a close friend or family member
Emergency loans for blacklisted people in South Africa are similar to the bad credit loans.
The reason being if you are blacklisted you are seen as a high risk person to lend money to.
Therefore your best option is to use personal goods of some value to sign as security against your borrowing.
Pawn shop loans offer no credit check loans which are good for blacklisted people. You just need to take your ID to your local store. Then discuss with a financial consultant what personal goods you are willing to sell. These personal items only get sold if you can’t pay the money back.
Peer to Peer loans are available in South Africa and an option if you are blacklisted. Discover more information on Peer to Peer lending here.
Another good way to get an emergency loan in South Africa is from a close friend or family member.
This may not be something you feel you want to do. However when you are desperate for a loan you have to try everything you can.
Swallow your pride and approach any close friend or family member you think may be able to help you. Explain your financial situation and ask them nicely if you can borrow money from them. Let them know you are desperate.
Emergency Loans for People under Debt Review
Can you get an emergency loan if you are under debt review? Yes you can. But not legally. Should you? Probably not!
Loans available for people under debt review include:
- Short term loans
- Private loans
- Payday Loans
- Gumtree Loans
Short term loans are available in South Africa for people who are under debt review. These loans apply to people who need to borrow a small amount of cash. You will have to provide some form of security and repayments will be over a short term.
Private loans are available from individuals that lend money to people privately. Be sure to check interest rates if you apply for this kind of borrowing.
Payday loans is when you qualify for a loan and pay it back from your next salary. This is a quick temporary solution for when you need to borrow money desperately.
Gumtree also have companies advertising that they offer loans to people in South Africa under debt review. Visit the Gumtree website to search for these lenders.
Warning: We can’t stress this enough. The reason people are under debt review in this country is because they have already got a problem with finances.
Loan sharks in South Africa don’t charge low interest rates. Therefore avoid applying for finance through any types of loan sharks.
Getting deeper in trouble by applying for an emergency loan when you are under debt review is not the wisest choice. So it’s our duty to warn you but your call.
Emergency Loans for Unemployed People in South Africa
Emergency loans for unemployed people in South Africa involve:
- Someone who can co-sign for you
- An alternative source of income. Such as retirement, disability or child support
- Getting a cash advance
- Applying for a pawn shop loan
So it is possible to get a loan if you have no job in South Africa.
However if you can’t provide any proof of income you will still have to meet the criteria that a lender requires.
You’re not likely to be able to borrow a large sum of money if you have no job or regular income from another source. However you can qualify for smaller, shorter term loans.
If you know someone who is willing to co-sign a loan agreement for you then it is possible to qualify for a loan without having employment.
Pawn shop loans are the best loans for people in South Africa that are unemployed.
Because you do not need a regular source of income to borrow money from a pawn shop.
For instance an example of a pawn shop loan in SA can be found through a company like Cash Crusaders. Visit their website here.
All you require is some form of South African ID and some personal items to lend the shop as a form of security.
After that if you default on payments and cannot pay back the money you borrow the store sells your goods to recover costs.
Emergency Loans for Business Funds
Emergency loans for business include funds for:
- Start up business
- Small businesses
- Medium business
- Working capital
- Covid 19 emergency relief funds
So lots of people in South Africa want to start up a business and need to borrow funds to do so. Furthermore some entrepreneurs have a bad credit record or no credit record.
There are a few ways to fund a start up business if this is your situation.
Start Up Small Business Finance
This is a list of small business startup options with no credit check in south africa:
- Small business grants
- Business credit cards
- Loans from friends or family
- Pawn shop loans
If you have good credit then getting a loan for small and medium businesses becomes a lot easier.
Working Capital Loans
Working capital loans are a flexible funding option for a business that needs cash in an emergency to cover expenses.
However if you are looking for business finance to expand then you should rather apply for a more long term type of borrowing.
Covid 19 Emergency Relief Funds
Covid 19 relief funding loans are for small and medium businesses in South Africa. Companies that the Coronavirus pandemic has had a negative affect on.
You qualify for this type of emergency loan option if you meet certain criteria.
To find out more about who qualifies for Covid 19 debt relief you can visit the official website.
Emergency Loans to Pay Rent & Prevent Eviction
A list of options for emergency loans when you need to pay rent urgently:
- Personal loan at banks such as Capitec or African Bank
- 24 hour approval loans
- Quick money loan
- Pawn shop loans
- Gumtree loans
- Micro loans
You can get an emergency loan to pay your rent and prevent yourself from getting evicted.
If you have an unexpected loss of interruption of income you can apply for and qualify for an emergency loan. This type of loan can mean prevention of being evicted from your home.
You shouldn’t try to solve all emergencies with credit but in these times of Covid 19 and lockdown things are different. Many people need to borrow money to pay their rental just until finances get better again.
Nobody wants to face eviction.
Loan approval in 24 hours
24 hour approval loans are a favourable option. Because it’s a few minutes to apply online and approvals can be done within 24 hours. Sometimes within minutes!
Quick money loans are available in South Africa. This can be a good solution if your monthly rent is quite low. Because you can get a quick money loan from Pawn shops such as Cash Crusaders.
These loans can be approved very quick as no credit check is done. All you need is a South African ID and personal goods to hand over as security against the loan.
Gumtree Loans and Microlenders
You can get micro loans from credit providers that advertise on sites like Gumtree.
This is also a good option when you need an emergency loan to pay your rent especially if your monthly rental payments are low.
Just be careful borrowing money in a hurry from microlenders. Some of them are what we call “Loan Sharks”. They charge very high fees and in addition, ridiculously high interest rates.
Emergency Loans for South Africa Students
Emergency student loans allow students to repay initial debt at a lower interest rate than most ordinary personal loans.
The costs of education in these cases are often government issued and allow students the opportunity of getting educated professionally.
Other types of student loans can be obtained from the bank. The first thing you will require when applying for a loan at any of the major banks will be proof that you have registered with an educational institute.
Another requirement will be that a parent or guardian will have to sign surety when you apply for an emergency student loan.
Some bank student loans offer you the freedom to only pay back your debt after your studies have been completed. But you will need to pay the interest back during the term of the loan.
The banks do normally offer a lower interest rate for students requiring money quickly for study purposes.
It is advisable to shop around a bit for the best interest rate on a student loan from the bank. So you can compare the various emergency loan options that finance institutes and banks have to offer.
Some banks will give you a debit card in addition to your loan account. Giving you the freedom to withdraw money when you need it for your study materials. Also letting you transfer funds from one bank account to the next.
Final tips for getting an Emergency Loan in South Africa
So there you have it. The different types of emergency loans available in South Africa.
Before you apply for any kind of finance in any type of emergency remember these tips:
- Compare emergency loans first
- Apply online it’s quicker
- Never borrow more than you need
- Always pay your repayments on time
- Pay the loan back in full
Follow the advice above. It will help you and your personal credit record.
The last thing you want is to be blacklisted after defaulting on your emergency loan repayments. Because having bad credit in South Africa makes getting approval more difficult.
Share this information with other people who are looking for emergency loans in South Africa. Let’s help each other in these difficult times.