Small Loans | Quick Application

How do I apply for a small loan?

Small loans lenders within our panel are pragmatic and understand that urgent cash loans must be financed quickly. The lenders working with Friendly Finance are able to review your application details within a minute and provide a pre-approval decision. Simply fill out the small loan application form above, providing the relevant personal information required. Click submit and we’ll have a pre-approval decision for you within a minute.

You’ll then be redirected to the small loans lender’s final application page, which will involve inputting further information and financial details so the lender can assess your creditworthiness. This assessment shouldn’t take the small loans lender more than 10 – 15 minutes. You will need to provide them with supporting documents to upload such as; payslips or bank statements. This is required by every lender, so they can pinpoint your ability to pay them back over the course of the loan agreement.

Do lenders offer no credit checks?

Yes. Small loans lenders are most concerned with your current financial situation, unlike personal loans lenders. If you have bad credit, loans may still be approved if your financial situation has improved.

Always read the loan agreement?

Bad credit loans and small loan lenders should provide a clear outline of the loan agreement prior to getting you to sign. The agreement will highlight all costs you might face borrowing money from the lender. These costs will vary between from lender to lender and can include such things as; interest rates, monthly service fees, one-off start-up fees, credit insurance fees and a required deposit. The agreement will also outline the number and frequency of repayments highlighting the first and last dates payments are due.

We strongly advise that you carefully read through your agreement prior to signing for small loans. It will help you to understand exactly what is expected of you and the actual cost of borrowing. If you do not understand part of the loan agreement, ask the lender to clarify the information before signing. Ignoring the loan agreement is never a good idea as it could lead to unexpected costs and being unable to meet the repayments.

We have also noted down some other tips to help you borrow wisely and to not default on any repayments once you have agreed to take out your loans online.

• Borrow money when necessary and do not over-extend the line of credit. For example, taking out small loans to help manage cash flow when you receive unexpected bills can be a good idea, however, borrowing to afford luxury holidays can lead to further debt.
• Create a monthly budget and know what your income and monthly outgoings are. Monthly outgoings are any costs each month, for example, groceries, bills, fuel, rent etc. This will help you understand how much money on a monthly basis you will be able to repay on any new line of credit that you take out. If by taking out a loan it causes your monthly outgoings to surpass your monthly income, it is likely you will struggle to repay your debt.
• Try to borrow small loans over as short a time period as possible. Borrowing over a longer time period may reduce the monthly repayment amounts but you will end up paying more in total.
• Check your credit rating regularly. Your credit score will affect the amount of money you can borrow and the interest rate the lender will charge you. By checking your credit rating regularly you’ll be able to identify any errors that could affect your ability to take out a loan or get lower interest rates.
• Always make your repayments. Failure to make a payment can lead to additional costs and interest being charged by the lender. Further failure to make further payments may result in legal action taken against you and a negative effect on your credit rating.

How are repayments made?

When your loan is approved and you sign your loan agreement, the lender will set up a direct debit to your bank account. This direct debit will automatically take the repayment amounts from you on the agreed upon dates. The repayment amounts and dates will be outlined in your loan agreement. This means that all you have to do is make sure you have enough money in your account on the set dates.

Be careful…

Small loans in South Africa can be of real assistance in the short term when you are in need of cash. However, it is very important that you are confident you’ll be able to meet the repayments. If you cannot pay back the loan on time, there is a chance you will incur additional fees and interest on the loan. You will likely continue to incur fees until the loan is repaid, which can lead to a cycle of debt that may be hard to break.