Get up to R2500 in your bank account within an hour. The online application wizard is easy to use and secure. Wonga calculates your credit worthiness using the details you submit in the application process.
- Easy application wizard
- Cash within an hour
- Cost of loan
Wonga is currently one of the fastest growing startup companies in the UK and now also operates in South Africa. They supply small loans of up to R2500 (up to R8000, if you’re a return customer) for a maximum period of 31 days. These fast little loans are perfect for unplanned emergency expenses, such as a medical bill or car service which may not have been budgeted for. Although your payday is suggested as the repayment date, you may also choose to pay the loan back at any stage within 31 days – however, it is important that the agreed amount (your loan amount including fees and interest) is in your account on that day when they request it in the morning. Wonga determines your credit worthiness using a complex algorithm which takes hundreds of factors into consideration, including credit checks and the way you use the site. This means that the answers you submit in the wizard have a direct impact on your approval. It is said that ⅔ loans are denied using the algorithm so make sure you enter your data truthfully.
To start your application you have to specify how much cash you want and how long you want it for using the “sliders” on the Wonga home page. If you can’t get the right number with the slider, you can always fill in the box with the amounts by clicking on the field and editing it. Once you’ve entered your desired loan the slider system will display the total repayment cost, with a breakdown of the costs involved. If you’re happy with your selection, clicking “Apply Now” will begin your application process.
The simple wizard guides you through the application process as you fill in your contact, employment and banking details. Your contact details include your cell phone number, which is validated with a PIN sent via SMS in the final stages of the application. Your employment details include information such as job type/description, salary and work phone number. The wizard is easy to use and validates your data as you fill it in, so you will never reload a page. As you complete the wizard, the system calculates your credit worthiness to instantly approve or deny your loan. If approved you will be shown a loan contract. This extensive loan contract, unfortunately, is loaded in a tiny box which required a lot of mouse scrolling and concentration to read thoroughly. Do not let this put you off and make sure you at least glance over it.
Cost of Loan
I took out a loan of R500 over 8 days and will have to pay back R 647.78 on my payday. Most of the additional R147.78 were not from interest, but initiation and service fees which amounted to R85.50 and R57.00 respectively. Total interest for the 8 days came to R5.28 only with the first three days being discounted. If you cannot pay back the loan on the agreed date you will be fined and will accrue interest on your loan for up to 60 days, so you should make it a priority to have the required cash in your account on the date agreed. After completing the application you will also have the ability to use your email and password to log in to your account, where you can review your loan details and make an early payment (to save paying interest).
I enjoyed the application process and was amazed to see money in my account within an hour, although I only completed my application around midnight. Although the cost of borrowing seems pretty steep, Wonga’s user friendliness and fast service certainly make up for that. This makes Wonga currently the top provider of online short term loans in South Africa.