Short-term loans are capped by law at 5% interest per month plus fees. but the rand amount still surprises people. See the full cost for your amount and term before you commit.
Short-term credit has its own legal price list. This calculator applies it to the rand. here's what each line means.
Every legal payday loan in South Africa is built from: interest capped at 5% per month (calculated pro-rata by days), a once-off initiation fee of R165 plus 10% of the loan amount (capped at R1,050), and a monthly service fee of up to R69. This calculator computes all three from your amount and days. the total to repay is the legally possible maximum, so no legitimate lender should quote you higher.
A one-month R2,000 loan costing R2,534 is a ~27% premium for a month. which annualises beyond 100%. That's not a bug; it's the legal design. Short-term credit is deliberately the most expensive category, reserved for gaps that can't wait. The NCA caps exist precisely because without them, this category would price even higher.
These figures exclude VAT. Lenders quote fees including 15% VAT in final agreements. on a R2,000 loan that's roughly R50 extra across the fees. If your contract's total is slightly above this calculator's, VAT is almost certainly the difference. If it's far above, question the lender.
The calculator's best use is comparison shopping: compute your number, then scroll down and compare what the same amount costs across live offers. The gap between the legal maximum and a competitive quote is your saving. And if the computed total makes you flinch. good. That's the calculation doing its job before the loan does it to you.
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Short-term credit in South Africa covers up to R8,000 repaid within 6 months. Choose the exact amount you need. every extra R100 adds cost.
Interest at 5% per month (pro-rata by days), initiation fee of R165 + 10% of the amount (capped at R1,050) and a R69 monthly service fee.
If the total cost looks steep, compare a 2 to 3 month personal loan. the rate is usually far lower per rand. Scroll down to compare live offers.
Under the National Credit Act, short-term credit is capped at 5% interest per month, plus a once-off initiation fee (R165 + 10% of the loan, max R1,050) and a service fee of up to R69 per month. This calculator applies exactly those caps.
Excluding VAT. Lenders quote fees including 15% VAT in final agreements, so expect the real total to be slightly higher. the difference on a R2,000 loan is roughly R50.
Almost never per rand borrowed. Payday loans price at the 5%-per-month cap (60% p.a. equivalent) plus fees, while personal loans for good credit price near prime. Payday wins only on speed and acceptance.
Contact the lender before the debit-order date. most offer a one-off restructure. Never let the debit bounce: penalty fees stack fast and the missed payment lands on your credit file for years.