What You Need To Know About Repaying Short Term Loans

Before applying for short term loans, you might be wondering what the catch is. If a company like Boodle Loans offers you a sensible interest rate and minimal fees, what do they have to hide? The answer, at least for Boodle Loans, is nothing. With us, what you see is what you get. You can see a full breakdown of the repayment terms for one of our short term loans before you even apply (and we will give you a summary when we send you a quote), and you can reasonably expect to pay what you agreed to. We do not hide fees and payments in the fine print like some of our counterparts, which means you can trust us. Since repayment is an important part of applying for and accepting a loan, we prepared this quick article to help you understand how it works at Boodle Loans.

How Does Repayment Work For Short Term Loans

Short term loans are usually taken out against your salary, or otherwise over a very short repayment period. This means that the loan is repaid very quickly, preventing excessive interest accumulation and unnecessary stress. Boodle Loans automatically deducts payments via debit order on a pre-agreed date (but never on a Sunday or a public holiday), but we will not issue a debit order without your explicit permission. Our debit orders go out early in the morning, but if for some reason your funds are not available yet on that day, another attempt will be made in the afternoon.

You are also not forced into a loan if you do not want it – you will be provided with a comprehensive quote (based on your SmileDial® application) that is valid for five working days, giving you time to decide if you want to accept the quote.

Your monthly payments are calculated as per the fees below.

Service fee: R60 per month plus 15% VAT
Initiation fee: R165 plus 10% of the loan value above R1000, plus 15% VAT. This fee is capped at 15% of the loan value plus 15% VAT.
Interest rate: 0.17% per day.
Annual interest rate (APR): 60%

What Happens If I Can’t Make My Monthly Repayment?

We understand that life can get out of control sometimes. If you cannot make your scheduled monthly repayment due to other financial obligations or due to unforeseen circumstances, we urge you to contact us to make arrangements as soon as you realise that repayment might be an issue. We firmly believe in giving you the benefit of the doubt and you can simply talk to us if you are experiencing any challenges. Our collection team will also contact you after a missed payment, but their prerogative is to help you make an alternative arrangement, not to get you in trouble. You will only be handed over to the credit bureau if an arrangement could not be made or agreed to, but that will not be necessary if you work and communicate with us.

You can trust Boodle Loans when it comes to applying for short term loans, because we operate our business on the basis of compassionate and responsible lending. We want to work with you, not against you.

For more information on our short term loans and repayment plans, visit our support page by clicking here.