How to Apply for a Personal Cash Loan in South Africa in 3 Steps

Since you’ve reach this page you already know that you need money – you need a loan. You also probably have an amount in mind. But do you know whether you need CHEAP LOANS with the lowest interest rates? Or EASY LOANS with the simplest application process? Do you know whether you need INSTANT LOANS with fast approval and payout? Or maybe any CASH LOANS with NO CREDIT CHECKS?

Don’t worry. You’ve reached the right place. In this article we guide you through all of this in only 3 steps; and explain to where you can find exactly what you need.

Step 1: Know How Personal Cash Loans Work

CASH LOANS are unsecured loans offered by a bank or credit provider in a cash payout that can be used for whatever you need. An unsecured loan means that the bank or credit provider does not take any specific property of yours as collateral to be repossessed if you can’t repay it.

To meet customers’ specific financial needs, various cash loan products have been developed. Different money lending institutions offer cash loans of varying amounts, repayment terms, cost of interest and eligibility criteria.

In order to find the right type of loan for you, you need to know how each of the different CASH LOAN options work.


PERSONAL LOANS are offered by banks and major credit providers.

PERSONAL LOAN amounts and interest charges are dependent on comprehensive credit checks conducted by these institutions, and could reach hundreds of thousands loaned at a relatively low interest rate if you have a good credit record and high income. This makes PERSONAL LOANS the cheapest option.

Repayment terms are also conveniently lengthy (up to 72 months) – and coupled with the low interest rates, doesn’t mean you’ll end up paying too much in interest.


PAYDAY LOANS are short term loans (repayable as soon as your next salary is received or over a few months), and are for relatively smaller amounts (generally no more than R10 000).

PAYDAY LOANS are offered by micro lenders, and are aimed at helping overcome financial difficulties you may face between salaries.

Interest rates for PAYDAY LOANS (as well as other short-term loans for that matter) are very high.

In general, you could get a PAYDAY LOAN with a poor credit record, and credit checks are minimal or not conducted at all.

Most Cash Loan products will be categorized in this way, although some offer more variable structures based on the customers in their target market. For example:


EASY LOANS and INSTANT LOANS are worth discussing as they are often marketed to the South African public as such.

Rather synonymously, both EASY LOANS and INSTANT LOANS are short-term cash loans predicated on making the application process simple – thereby increasing the speed of approval and payout.

EASY LOANS and INSTANT LOANS are in essence the same thing as payday loans, with similar repayment terms on loans of amounts in the tens of thousands – and high interest rates. They also have minimal to no credit checks.

Step 2: Prepare Your Documents

What Document Requirements do you Need to Apply for a Personal Cash Loan?

We provide a list of the documents you may be required to provide when applying.

  • South African Identity Document (RSA ID) or smart card ID
  • Most recent 3 months Bank Statements or Payslips (some lenders may ask for only your single most recent payslip)
  • Proof of Residence, Utility Bill (e.g. water  or electricity) or Statement of Account that has your name and physical address (not older than 3 months)

Although some money lenders claim to require fewer than those mentioned here for their applications, registered credit providers in South Africa must obtain certain documentation from you in accordance with regulations.

An example is South Africa’s FICA legislation, which requires that a lender must uniquely identify you as a South African citizen using an specific documentation such as an ID document and proof of residence.

Money lenders requiring less documentation should typically request this at a later stage in the application process.

Preparing your documents makes the process more efficient for you.

Step 3: Tips to Apply for a Cash Loan

Having gotten this far you should now understand your options when looking for a cash loan. Considering the amount you need to borrow and how quickly your budget will allow you to repay it, your choice of cash loan (whether long-term personal loan or short-term payday loan) becomes easier to make. Remember: the longer you take to repay your loan, the more interest you will pay.

The last considerations before applying for your cash loan should be with regard to the credit provider used.


Shop around and compare the costs of borrowing your cash loan amount from different credit providers. This comparison should be based on the total amount of interest payable and service fees you will be charged to borrow your cash loan amount for the expected repayment terms.

Don’t forget that your cash loan repayments should be affordable for you, especially when choosing from the short-term payday loan options with higher interest rates and lax credit checks.

We make it simple to estimate your monthly repayments on a cash loan amount offered to you at a given interest rate for a specified repayment period. Use our financial calculator here.

There are several other online websites which make it easier to compare loans as well, found with a simple Google search.


Importantly, when applying for a cash loan, try to work with larger financial institutions and well-known credit providers. Make sure to do your due diligence by researching the companies and reading customer reviews. Doing so can help you avoid scams, unfulfilled promises and hidden costs.

The National Credit Regulator (NCR) of South Africa warns that scams can usually be identified by the following:

  • If they are unregistered (you can check on the NCR website)
  • If there are no credit checks
  • If they ask for money upfront

Once you have completed these 3 steps, you will be well-equipped to make informed financial decisions as to how to apply for a personal cash loan in South Africa.

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