P
Loans
Payday Loan
A short-term, high-interest loan typically due on your next payday, usually for small amounts up to R8,000. In South Africa, payday loans are regulated under the National Credit Act and must be registered with the NCR. While convenient for emergencies, they carry significantly higher interest rates than personal loans.
Usage Examples
"She took a payday loan of R2,000 to cover groceries until salary day, but the fees added R600 to the total cost."
"Before taking a payday loan, check whether your bank offers a cheaper overdraft facility."
"Payday loans should only be used as a last resort — the annual interest rates can exceed 60%."