A cash loan is short-term credit paid into your bank account and repaid over weeks rather than years. Nobody hands over notes — "cash" here means unsecured and immediate, not physical.
Typical shape
- Amount: a few hundred rand up to roughly R8 000 from short-term providers.
- Term: from about six months to a few years.
- Repayment: usually by debit order on your payday.
What it costs
Interest, a once-off initiation fee and a monthly service fee — all capped by regulation under the National Credit Act. Because the fees are largely fixed, a small short loan costs proportionally more than a larger longer one. Ask for the total amount repayable; it is the only figure that lets you compare two offers.
Repaying on time matters more than you think
A short-term loan repaid on schedule builds a payment record, which is the single heaviest factor in what you are offered next time. A missed one does the reverse, and the penalties on small loans bite quickly.