Are you looking for a personal loan that doesn’t tie you in with long-term repayments, but you need more than the typical 30-days in which to settle the debt? If you are, then the new personal loans that Wonga are now offering could suit you down to the ground.
Payday loans are handy when you have a short-term financial dilemma. Assuming of course, when your next pay-cheque hits the bank, you’ll have enough to settle the loan and still have sufficient money remaining to meet your other financial needs and obligations.
But what if paying the loan off within 30 days will leave you short again for next month? If that’s the case, you could be on the edge of a slippery slope – this is how the classic debt spiral starts. Some loan customers simply need more time to repay the credit so they can do so in a safe and sustainable way.
Recognising this need for a longer, short-term credit option, Wonga launched their new personal loan in March 2018, which offers lenders the option to receive their loan with the same speed and convenience as other short term loan products, but now with the option to repay the amount over monthly instalments for up to half a year.
Comparison to other loan products
It’s difficult to compare the Wonga personal loan against other products as there’s none that are quite like it. The closest comparisons are the 12 month loan offerings from bigger lending institutions like Nedbank and ABSA. It’s possible to borrow for a minimum mandatory period of 12 months with these lenders.
Using pricing information from these banks we determined that you can borrow R4000 for 12 months requiring a total repayment of R6261. If one compares this to the new Wonga personal loan (which of course is over only six-months) the total repayment is only R5400. In other words, its R1261 cheaper – a significant saving if you don’t need the additional 6 months of time to make repayment.
Wonga has built its reputation on the speed and ease with which you can organise online loans, and that same concept is applied to their new personal loans. All you need to be able to provide to apply is:
- Your mobile phone number
- Your individual SA ID number
- Your bank account details
- Proof of your earning over the past three months
For maximum speed and convenience, you can apply for one of these new loans online. The entire application process only takes a few minutes.
Flexible help when you need it
Although you can have as long as up to six months to repay one of these loans, if you want to settle it earlier you can. This allows you a greater degree of flexibility and of course means that the total amount you repay will be less, dependent on the amended loan period.
In addition, if you want to take a loan out for say three-months instead of six that too is entirely possible. Simply give Wonga your preferred loan duration, and you’ll get a tailor made quote.