How personal loan interest works in South Africa — and what you really pay
Interest is only part of the cost. Here is how fees and the loan term change what you repay, with a worked example.
Personal Loans
A personal loan in South Africa costs more than its interest rate suggests. Initiation fees, monthly service fees and the length of the loan all change what you repay.
These guides explain each cost in plain language, show how to read a pre-agreement quote and help you compare offers before you apply.
Loan costs and fees
What is an initiation fee on a personal loan?
A once-off fee for setting up your loan. It is usually added to the amount you borrow, so you pay interest on it too.
Applying for a loan
Does checking a loan rate affect your credit score?
A soft check for an indicative rate does not change your score; a full application usually does. Here is how to compare safely.
How to apply for a personal loan in South Africa
Payslips, bank statements and an affordability assessment — what lenders ask for and how long it takes.