Before applying for anything, work out what the repayment would be. The calculator on our home page gives an estimate in a few seconds — move the amount slider and read the monthly figure and the total repayable.
How the calculation works
A fixed-instalment loan is amortising: each payment covers the interest accrued that month plus a slice of the capital. The instalment formula uses the amount, the monthly rate and the number of months. Our estimate uses 24% APR — the midpoint of the 12% to 36% range across our panel — so treat it as a guide, not a quote.
The number to look at
Total repayable, not the monthly amount. Two loans with the same instalment can differ by thousands of rand depending on the term. R30 000 at 24% APR costs R4 020 in interest over 12 months and R17 376 over 48 — the same loan, four times the cost.
What the estimate leaves out
Initiation and monthly service fees, which vary by provider and are capped by regulation. Your actual agreement will show the full figure, including them, before you sign anything.