Rent money loans in South Africa will help you pay rent arrears when you are behind on your monthly payments. Borrowing money to pay your landlord may quickly buy you the time you need until your finances get better again.
Loans to help you pay outstanding rent:
- Personal Loans
- Emergency Loans
- Pawn Shop Loans
- Bridging Finance
- Private Lender Loans
Because of the Covid 19 pandemic thousands of people in South Africa are falling behind on monthly rental payments. Lockdown means a loss of income and many need money today or tomorrow to pay outstanding rent on their homes urgently.
Rent loans for Covid 19 circumstances because of a temporary loss of income can come in many forms. So use the following to know which loans you can apply for to help you pay your rent in South Africa and stay where you live.
Rent Money Loans in the Form of Personal Loans
Personal loans to pay your rent arrears are available from most South African banks including:
- Capitec Bank
- African Bank
- First National Bank
- ABSA
- Standard Bank
- Wesbank
- Nedbank
- Investec
- Mercantile
This list of banks offer personal loans for most reasons. So you will be able to get a loan to pay rent arrears in South Africa.
There is of course certain criteria you have to match before you qualify for a personal loan. Because the banks have quite strict rules with lending money.
Firstly you must be old enough to apply and have your own personal banking account. The minimum age to apply is 18 years old.
Secondly you must be a South African citizen or permanent resident. All banks will ask for proof of your SA ID.
Thirdly to get approval for a personal bank loan you must have a good credit record. Because banks won’t approve your loan application if you are blacklisted.
This may interest you: Check Credit Records to see if you are Blacklisted
Lastly you must be earning a steady income. As part of your application you will be asked to provide bank statements to prove you are earning money regularly. Therefore the bank can see you will be able to honour the repayments of your personal loan.
Most banks like Capitec and African Bank allow you to apply for a loan from your mobile phone using their online banking Apps. African Bank will give you an answer for a loan within just a few minutes.
This is the best type of loan to pay rent money on your home as you are borrowing from a registered South African credit provider. In addition if your credit score is high you will get the lowest interest rates on your payback terms.
Emergency Rent Money Loans
You can get an emergency loan to pay rent when you need to borrow money in a hurry.
Emergency rent loans such as:
- A quick bank loan
- 24 Hour Approval loans
- Loans from pawn shops
- Other shop loans
- Instant approval loans
- Online finance
Being behind on your monthly rent payments can be seen as an emergency in South Africa. So you can discuss that with the creditors when you apply.
If you are in such a hurry that you need to pay rent today or tomorrow then apply for the instant approval loans.
Instant approval loans are available nationwide in South Africa. However make sure you check the level of interest rates on this kind of borrowing.
This might also interest you: Emergency Loans for South Africa Residents
A Pawn Shop Loan to Help Pay Rent Arrears
These are the best kind of rent money loans if you have a bad credit record.
Because to qualify for a pawn shop loan you do not need to produce any proof of income and there are no credit checks done.
However what you will need is some personal goods to use as security against your borrowing. You pawn your items.
If you speak to a financial consultant at a shop such as Cash Crusaders you can discuss the details of getting a loan from them.
Just know that these types of loans are normally quite low depending on the value of your personal items. So you need to make sure the amount of money you borrow will be enough to cover your rent arrears.
In addition if you default on your loan repayments you will lose the personal items that you pawned. The shop will sell your items to cover the costs of your finance.
So if you need rent money loans but you have a bad credit record this could be your answer.
We go into a lot more detail on pawn shop loans in South Africa here: How a Pawn Shop Loan Works in South Africa
Pay Outstanding Rent with Bridging Finance
If you are expecting to get some money soon then you could apply for bridging finance to pay your outstanding rent payments.
Bridging finance is a temporary loan solution that will tide you over until you receive the cash you are expecting. Therefore it’s a type of cash advance loan.
The banks in South Africa offer bridging loans so your first option would be to speak to your local branch consultant.
An advantage to this kind of borrowing is that there is no real limit on a bridge loan. It all depends on your personal circumstances as the borrower.
Most commonly South African’s use bridging loans for pension payouts. So if you are expecting a payout on a pension scheme or provident fund this may be your best option.
This is a temporary cash loan and remember you are going to need all the usual documentation to apply. As well as documents to prove your upcoming pension payout or other expected sums of money.
Private Lender Loans
Loans from private lenders in South Africa are another possible avenue when you need to borrow money for rent.
There are private individuals that loan money to South Africa residents without affordability checks.
You have to tread carefully here. Many loan sharks and micro loan creditors are happy to lend you cash but at a price.
Because this is a type of high risk personal loan the private lenders will charge high rates of interest.
In some cases you may be better off facing eviction by your landlord than having to pay a private individual almost double the amount they lent you.
However check on sites like Gumtree for this kind of borrowing.
Or look on the noticeboard at your local supermarket for private individuals that loan money in South Africa. Because sometimes you’ll find a private loan lenders list.
You never know your luck in your search for local private money lenders.
We will just say this. It’s our job to inform you of this kind of finance but certainly not a solution we recommend. Even if you are desperate for cash.
Always use the registered banks as your first port of call for a loan to pay outstanding rent money.
Other Ways to Get Money Quickly to Pay your Rent Arrears
Apart from applying to get a rent money loan there are different ways to get money to pay your landlord and catch up with rent arrears.
For instance you may have personal items you can sell privately. Check all around your house, garage, garden and loft to find items you no longer need or use.
Some of these items can sell for enough to get you the money you urgently need to pay the arrears on your rental.
Advertise the items you wish to sell online using sites like Gumtree or Facebook Marketplace.
If you are a family with two cars that are paid off consider the idea of selling one. Because this can be a solution to getting the cash you need to pay your landlord. After that when your financial situation gets better you can consider buying a second car again.
Should you Pay Rent Arrears with a Credit Card?
You do have the option of paying outstanding rent for your home using a credit card. Although be careful with this as interest rates on cards are high.
Ideally you want to only pay one or two months rental with a credit card in South Africa. Because of the higher interest rates.
If you are absolutely certain you are going to get the cash to pay off the balance on your card soon then this could be your solution. Although in this case you may be better off applying for the bridging finance loans.
The quicker you pay back the money you borrow on a credit card, the lower your interest rate will be.
If you do decide to pay outstanding rental payments with a card go for a low interest rate credit card.
Discovery bank has a fairly new online banking system where you can apply for low interest rate credit cards. Check the website here.
In Conclusion
You may need a loan to pay your rent money today or tomorrow. You may be in arrears and have a few months outstanding payments to settle.
Maybe you are facing eviction and worried about the possibility of having to move out of your home.
Whatever your personal circumstances. However much money you need to pay your landlord to catch up with your bill payments. There is a solution for you to get rent money loans online or by applying at your nearest financial credit providers. South Africa… Don’t lose hope.
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