Holiday loans in South Africa – Travel or relax in style
Life is too short to skip the moments of pure relaxation that holidays offer. Life isn’t perfect either, so you can’t always rely on your savings to finance your road-trip, vacation, or retreat. Luckily, holiday loans can be a gateway to your getaway. Learn all about holiday loans so you can take advantage of life’s little breaks.
How does a holiday loan work in South Africa?
A holiday loan is a different type of personal loan that has the following features:
- Unsecured loan. There’s no need to provide collateral for unsecured personal loans. Therefore, you can borrow money easily with little risk to your assets.
- Maximum and minimum loan amount. You get access to as little as R2000 and as much as R300 000, depending on your income level.
- Maximum and minimum loan term. The cost of your holiday is divided into monthly instalments which can be spread over 12 months up to 84 months maximum.
- Variable or fixed rate. The interest rate on unsecured holiday loans can remain constant for fixed-rate loans or fluctuate for variable-rate loans.
What are holiday cash loans used for?
Holiday loans can give you a lot of freedom during the holiday season since the funds can be used for many enjoyable and worthwhile activities that include:
- Buying gifts;
- Plane tickets;
- Accommodation;
- Holiday shopping; and
- Meals.
Important factors to look at when comparing loans
There are a few factors to keep in mind before applying for a holiday loan. Considering these factors can help you to quickly pick a favourable loan from the available options:
Interest rate
A competitive interest rate is the lowest rate you can get depending on your credit score. Some lenders offer specialised holiday loans with low interest rates. In any case, a low interest rate should always get you excited since it’s one of the major ways to save money when taking out a loan.
Total cost of the loan
Another crucial way to save money on your loan is to look out for extra fees and charges. Typically, the lender will charge an initiation fee and ongoing monthly service fees. Additional fees can add to the total cost of the loan when combined with the interest rate, so factor this in when deciding which loan is affordable.
Repayment options
Here you should consider the number of months you need to pay back the loan. If your aim is to save money, try paying off the loan as quickly as possible by choosing a shorter term and larger monthly payments. You might also need to make early or additional payments to achieve this goal so find out if the lender will charge you a penalty fee for fast-forwarding the repayment process.
Unique advantages
Different lenders offer holiday loans with various features. Check to see which lender provides the most beneficial financial service. For example, if you’re planning a holiday on short notice, you might want a lender with a quick turnaround time. In this case, online loans help you to skip the queues and paperwork. You can even receive the lump sum in your bank account on the same day while in the comfort of your home.
Holiday loan repayment calculator
The holiday loan calculator from CompareLoans helps you to figure out which monthly payments are affordable. Start by entering your loan amount using the sliding tools. Next, enter your loan term and click “Calculate Repayment.”
You can repeat these simple steps using different values in order to compare the results for each lender featured in our comparison tables above. Finally, choose a monthly payment result that fits in with your budget and efforts to save money.
What you need to apply for a holiday loan
General requirements for holiday loans usually include:
- Minimum age of 18 years;
- Valid South African ID;
- A regular monthly income;
- Recent bank statements and payslips;
- Proof of address; and
- A good credit score.
How to apply online for a holiday cash loan
You can make an easy and quick holiday loan application through CompareLoans by following these simple steps:
- Compare South African lenders. Check out our comparison tables above to see the various loan options showcased there. Use factors like the interest rate, fees, and monthly payments to compare loans. To see more product details for a particular lender, click “View fees and additional info.”
- Click “Go To Site.” Each lender in our comparison tables has a “Go to Site” button. Pick your favourite lender and visit their website with a single click.
- Start your application. During the application process, you’ll need to provide your ID and phone number as well as your email address. You’ll also need to upload your proof of income documents.
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