A micro loan is simply a small one — often a few hundred to a few thousand rand. The mechanics are the same as any other credit agreement, and the same National Credit Act protections apply.
Small does not mean cheap
Fees on small, short loans are proportionally heavy, because a fixed initiation fee spread over R500 costs far more per rand than the same fee over R20 000. Always ask what the total repayment is; on a very small loan the answer can be a surprisingly large percentage.
What it is good for
A genuine, one-off, short gap — the taxi fare to an interview, a prescription before payday. It is a poor tool for a recurring shortfall, because the cost repeats each time.
Applying
Requirements are the same as any short-term product: ID, a South African mobile number, a bank account in your name, and a regular income the provider can verify.