What are Short Term Loans and Long Term Loans

Short term loans are a way to borrow an amount of money and pay it back in a short space of time. In essence it is a temporary loan for short term requirements. Short term loans will be loans taken out and paid off between 1 month and 6 months. This contrasts with other types of borrowing and long term loans, such as mortgages and car loans, which are taken out for larger amounts of money that you typically pay back over several years.

Try our Loan Repayment Calculator

Before you apply for a short term loan, it helps to work out exactly how much you can afford to borrow and on what terms you can make repayments. The Fair Money loan calculator allows you to do exactly that – enter the amount you need to borrow, along with the length of the repayment period and it will show you what the total payments and costs would be.

Use the sliders to look at the costs and repayments for different loans over different periods to find the best solution for you.

Fair Money Online Loans Instant Approval

Dependent on what your circumstances may be, applying for a short term loan with Fair Money South Africa could be a useful solution. Below, we’ve outlined different scenarios in which we may be able to help you.

Applying for a loan if you have good credit

If you have a history of good credit and paying back your loan on time, this would be deemed highly favourable when applying for an online loan. At Fair Money we will reward you with lower interest rates. When assessing your loan application, we consider your annual incomings and outgoings, along with any financial commitments you may have.

Applying for an quick online loan

If you’re looking for a same day online loan, Fair Money could offer you a 60 second eligibility decision via our eligibility checker tool. 

Applying for a short term online loan

A short term loan is one that is taken out for a relatively small amount of money and then scheduled to be repaid in less than 6 months. Fair Money short term loans are available for borrowing between R2000 and R8000, subject to affordability, and are managed online from application to final payment. Fair Money do also have a dedicated contact center too should you need to speak to someone.

Using our loan calculator, you can decide whether a short repayment would be the best option for you, given the amount of the monthly payment. After using the calculator, you can check before you apply to see if you’re eligible for a Satsuma short term loan.

In all instances, in order to further validate your income, we may ask you for 3 months’ worth of payslips.

Why choose Fair Money?

If you’re looking to get a loan online, Fair Money could help. We offer short term loans which can be repaid over a period of 1 to 6 months, meaning you can spread the cost instead of paying back in one lump sum. If approved, you can borrow between R2000 and R8000, subject to affordability through our online process.

We can even give you a decision and you may have the funds in your account on the same day.

We don’t charge any late payment fees or early settlement fees, though we do charge an interest rate on the money you borrow as well as an initiation fee and monthly admin fees. However, we will never place any unexpected extra fees, only what was agreed upfront.

What’s the difference between Short Term Loans and Payday Loans?

Although they can sound similar, there are several differences between short term loans and payday loans. 

Unlike payday loans, which must be repaid in one lump sum within a few weeks of taking out the loan, repayments on a Fair Money short term loan can be made in monthly instalments, over a period of between 1 to 6 months. 

If you miss a repayment on a payday loan or roll it over for an additional month, you can be charged an additional fee. You will not pay any additional fees on a Fair Money short term loan, only what’s agreed upfront.

Can a Short Term Loan be good for my credit rating?

In theory, any loan you take out – a short term loan or otherwise – can have an impact on your credit rating. Whether it has a positive or negative impact depends upon how you manage your repayments. 

If you pay your loan back under the terms agreed when you took it out, and make all your repayments on time, this can help to improve your credit rating. If, on the other hand, you are late with payments or miss them completely, this can harm your credit rating.

If you have other lines of credit open, you should also consider how these are managed. If payments are missed elsewhere then this will have a detrimental impact on your credit rating.

However, there are exceptions to consider: if a particular company sees short term (or payday) loans negatively, then having this on your credit history could potentially count against you.

Common questions about Short Term Loans

If you’re still unsure whether a Fair Money short term is right for you, check out the answers to some of the most frequently asked questions.

 Can I get a short term loan?

If you’re a SA resident, aged 18 or over and have a valid bank account, you’re eligible to apply for a Fair Money loan. In terms of getting a loan, we need to conduct a credit and affordability check to ensure that you have managed payments well in the past, and that you can comfortably pay back the money you wish to borrow.

Can I get a loan online with bad credit?

Unfortunately, at this stage, Fair Money is only approving loans for good credit history clients Approval for loan is based on affordability checks and credit scores which indicate who is a good credit profile and who isn’t.

How do short term loans work?

This varies from lender to lender, with Fair Money however, our short term loans are available for amounts between R1000 and R80000, repayable over a period of between 1 and 6 months.

Ready to apply? Go to our Fair Money loan application page and add your details for an instant decision. 

How Does It Work?

Apply today with these four simple steps.


Fill in our free and easy online application form. You will need a ID, bank statement and monthly payslip.

Eligibility Check

We will automatically assess your  eligibility against our credit history and affordability criteria.

Approval and Funding

Sign and send back your loan agreement which will be sent to you via email subject to approval. Funds deposited into your account within 24 hours.

Debt Free

Feel satisfied with the feeling of paying off your loan and being debt free