Disclaimer: This is general information, not financial advice. Interest rates depend on your credit profile and lender. NCA caps apply. Always read loan agreement.
Current Legal Caps (NCA)
National Credit Act caps unsecured personal loan interest at: Repo Rate x 2.2 + 20% per year
At repo 7.25%: 7.25 x 2.2 = 15.95 + 20 = 35.95% per annum maximum
| Credit Profile | Typical Rate (p.a.) | R10,000 over 24 months (est) |
|---|---|---|
| Excellent (700+ score) | 12.5% – 18% | ~R520 p/m |
| Good (650-699) | 18% – 25% | ~R560 – R610 p/m |
| Fair (550-649) | 25% – 32% | ~R610 – R670 p/m |
| Poor (<550) | 32% – 35.95% | ~R670 – R700 p/m |
Excludes initiation fee (max R1,207.50 + 10% above R1k) and monthly service fee R69.
Why Banks vs Non-Bank Rates Differ?
TransUnion Q2 2026 report: Bank personal loans average 26.5% delinquency vs non-bank personal loans 48.3% delinquency. Non-bank lenders charge higher because risk is higher.
- Banks: Capitec, FNB, Absa, Standard Bank – Lower rates but stricter approval
- Non-bank: Capfin, Finchoice, African Bank – Higher rates, faster approval, more risk
5 Ways to Lower Your Interest Rate
- Improve credit score 3 months before applying – Pay store accounts on time
- Reduce existing debt – Lenders check debt-to-income ratio
- Apply for less than max – R15k instead of R50k gets better rate
- Choose shorter term – 12 months cheaper than 24 months total interest
- Compare at least 3 lenders – Use pre-qualification (soft check) not full application
Warning: Avoid Loan Sharks
Old Mutual Monitor shows mashonisa loans rose from 12% to 19% in 2026. Mashonisa can charge 50%+ per month – illegal under NCA. Only use NCR-registered lenders. Check NCR website for NCRCP number.
FAQ
What is the difference between pre-qualified and pre-approved?
Pre-qualified is an estimate based on info you provide – no credit check. Pre-approved is after lender does soft credit check and says you likely qualify, but final approval still needs documents and affordability.
Sources: SARB repo rate, NCA caps, TransUnion Q2 2026. Updated Oct 2026.