Response to consumers requiring more short-term loan options
Wonga Finance South Africa (Wonga) has extended its product offering with the introduction of a short-term, flexible instalment loan. This was developed in response to consumer feedback that showed a need for more short-term loan options, which are both quick and affordable.
“Many South Africans are struggling to make ends meet, particularly if they suddenly have to manage an extra cost like unexpected hospital bills, car repairs or even a planned, big expense like a wedding,” explains Wonga SA CEO, Brett Van Aswegen.
“Our data shows us, however, that Wonga customers are dynamic and digitally savvy, and they are wise about how they use their money, using short-term loans to help them manage cash flow short falls that arise from unexpected emergencies. These consumers are not irresponsible with their finances, but rather need a helping hand over the short term for very specific reasons,” he continues.
South Africa’s credit regulation ensures consumers can afford to repay debt without getting into hardship. One-month loans, the only short-term loan product Wonga offered until now, make up a relatively small percentage of the credit active market, just 0.7% in 2017.
Feedback to Wonga showed that customers needed more short-term loan options, which they are able to quickly access and tailor around their needs and what they can afford. The 6 month instalment plan available with the new Wonga personal loan provides greater repayment options and budgeting flexibility for customers.
Van Aswegen goes on to say “Customers’ needs have not changed, but they are seeking affordable ways to repay their loan over time instead of through a single repayment. However, many customers do not want to take out a long-term loan when their need for cash is relatively short term. Our aim is to match the loan term to the utility of the loan so that customers are able to comfortably meet repayments.”
The new Personal Loan by Wonga, which allows repayments to be spread out over up to six months, enables consumers to better manage their cash flow, according to what they can comfortably afford.
The ins and outs of the new Wonga Personal Loan
The Wonga personal loan of up to R8000 is available over a minimum repayment period of two months. New customers can borrow up to R4000, extended to a maximum period of three months at a fixed interest rate of 5% per month. Existing customers can borrow up to R8000, with a repayment term of up to six months at a fixed interest rate between 3% - 5%.
Repayment is made simple with a variety of options ranging from a debit order deduction to EFT, cash deposits and the EasyPay payment gateway service. You can learn more about Wonga personal loans here.
“Our driving principle is to ensure that we support everyone’s right to simple, fair, financial choice. To this end we understand, particularly in South Africa, people need financial solutions that will not only allow them to progress in life, but do so safely. We believe that the new Personal Loan offers just this,” ends Van Aswegen.
As part of Wonga’s commitment to responsible financial management the company has created a free resource, The Money Academy, which provides tips on the four pillars of financial literacy namely, budgeting, saving, investing and debt management via a video series per pillar. Visit www.moneyacademy.co.za for more information.