Payday loans compared
Written byFinmart Editorial Team
What to compare before you apply
| Loans | Loan amount | Loan term | Interest rate | Age |
|---|---|---|---|---|
 Cashgist | Up to R4,000 | Up to 30 days | 36% – 60% p.a. | 21+ |
 Bongo Credit | Up to R4,000 | Up to 35 days | ||
 Creditbar | R500 – R5,000 | 7 – 61 days | 18+ | |
 Boodle | Up to R8,000 | 1 – 6 months | Up to 60% APR | 18+ |
 Clickcredit | R500 – R8,000 | 5 – 40 days | 0.16% per day | 18+ |
 Lime24 | R500 – R8,000 | Up to 90 days | 0.16% per day | |
 Sunshine Loans | R500 – R4,000 | 4 – 49 days | 18+ |
What is a payday loan?
A payday loan is a small, unsecured short-term loan that you repay in one amount on your next payday — usually within a month. Amounts typically range from a few hundred rand to about R4,000, and the repayment is collected by debit order on the day your salary arrives.
Legally a payday loan is a form of short-term credit, so the same limits on interest and fees apply.
How a payday loan works
- Day 1: you apply online, share your bank statements and receive a decision — often within minutes.
- Same day: after signing the quote and approving the DebiCheck mandate, the money is paid into your account.
- Payday: the lender collects the full amount, including interest and fees, by debit order.
Sunshine Loans, for example, offers R500 to R4,000 for 4 to 49 days and matches the repayment to your pay date; Pause Express lends R300 to R4,000 repayable on your next payday.
How much a payday loan costs
Because the term is short, a payday loan costs less in rand than a longer loan, but a lot as a percentage of the amount borrowed. Interest is capped at 5% per month on your first loan in a calendar year and 3% on later ones, the initiation fee at R165 plus 10% of the amount above R1,000 (maximum R1,050 plus VAT), and the service fee at R69 per month.
| Lender example | Amount and term | Total repayable |
|---|---|---|
| Sunshine Loans | R2,800 over 27 days | about R3,407.63 (interest and fees R607.63) |
| Springloans | R2,500 on a 91-day term repaid after 10 days | R2,537.50 |
| Springloans | R5,000 on a 91-day term repaid after 30 days | R5,150.00 |
Examples as published by the lenders; your quote depends on your own profile.
Who can get a payday loan?
- Be 18 or older (a few lenders set the minimum at 21)
- Have a valid South African ID; some lenders also accept permanent residents
- Earn a regular income that is paid into your own bank account
- Have a South African bank account and a cell phone number
- Pass the lender’s credit check and affordability assessment
Payday lenders pay particular attention to how regular your salary is. Three consecutive salary deposits on your bank statements are the most common proof.
How to check that a payday lender is legitimate
- The website shows the company name and an NCR registration number starting with NCRCP
- The number appears on the National Credit Regulator’s register of credit providers
- You receive a written pre-agreement quote with all fees before you sign
- Repayment is collected by debit order or EFT — never by keeping your bank card
- No fees are charged before the loan is paid out
Informal “mashonisa” lenders who keep your bank card, PIN or ID act illegally and are not bound by the interest caps. Avoid them, even if they seem convenient.
What if you cannot repay on payday?
Contact the lender before the debit order runs. Many lenders offer a payment arrangement or an extension, although both increase the cost. If you ignore the problem, the lender may add default administration charges and collection costs, hand the account to a collections agency and report the arrears to the credit bureaus.
If several debts have become unmanageable, an NCR-registered debt counsellor can apply for debt review and negotiate lower instalments with all your creditors.
Alternatives to payday loans
| Alternative | When it makes sense |
|---|---|
| Salary advance from your employer | Often interest-free; ask HR whether your employer offers one |
| Personal loan | When you need more time or a larger amount — lower monthly rate, longer term |
| Emergency savings or a stokvel | The cheapest option when available |
| Payment arrangement with the creditor | For bills such as municipal accounts or school fees |
Advantages and disadvantages of payday loans
| Advantages | Disadvantages |
|---|---|
| Money in your account on the same day | The whole amount is due from one salary |
| Small amounts, short commitment | High cost relative to the amount borrowed |
| Simple online application | Risk of borrowing again every month |
| Costs capped by law | A failed debit order leads to extra charges and a negative listing |
Why people use payday loans
Most payday loans in South Africa are taken for a small number of reasons: an unexpected bill before month-end, transport to work until salary day, a medical expense, school costs at the start of a term or an urgent repair. What these have in common is that the expense cannot wait and the money to repay it is already on the way.
How to apply for a payday loan
- Compare registered payday lenders and check their NCR registration numbers.
- Choose an amount you can repay in full from your next salary, after your normal expenses.
- Complete the online application with your ID number, employer, income and bank details.
- Upload or share 3 months of bank statements showing your salary deposits.
- Read the pre-agreement quote: check the repayment date and the total amount repayable.
- Sign electronically, approve the DebiCheck mandate and wait for the payout.
How to avoid the payday loan cycle
- Never take a new payday loan to repay the previous one
- After repaying, set aside a small amount each month for the next emergency
- Track where your money goes in the week before payday — that is where the gap comes from
- If you need a payday loan three months in a row, speak to a registered debt counsellor
- Ask your employer whether a salary advance is available before you borrow
Frequently asked questions about payday loans
Are payday loans legal in South Africa?
Yes, when they are offered by credit providers registered with the National Credit Regulator and priced within the interest and fee caps of the National Credit Act.
Can I get a payday loan without a payslip?
Often yes. Many lenders accept bank statements that show your salary deposits instead of a payslip, or verify your income through online banking.
Can I get a payday loan with bad credit?
Some lenders focus on your current income and affordability rather than past problems. You will still go through a credit check, and applicants under debt review are usually declined.
When is a payday loan repaid?
On the payday agreed in your contract. The lender collects the amount by debit order, so make sure the money is in the account that day.
Can I get a payday loan on a weekend?
You can apply at any time. Some lenders pay out 24/7 through instant payments; others process weekend applications on the next business day.