How Much Can I Borrow? Affordability Calculator
Answer honestly and this tool will show what a lender's NCA affordability assessment is likely to conclude — before you apply anywhere.
Estimate only, using 70% of your disposable income as a safe instalment ceiling and a personal-loan rate of 28%/year (or 5%/month short-term for small amounts). Each lender applies its own assessment as required by the NCA.
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How lenders assess affordability in South Africa
Since the National Credit Act, every registered lender must complete an affordability assessment before approving credit. The process is consistent across the industry:
- Verify income — payslips or 3 months' bank statements; grants and rental income can count.
- Deduct existing debt — everything visible on your credit report.
- Deduct living expenses — with prescribed minimums per income band, even if you declare less.
- Check the new instalment fits in what remains. If not, approving the loan would be reckless lending — which is illegal.
Tips to increase what you qualify for
- Settle small debts first — every closed account frees up assessed capacity.
- Choose a longer term — lower instalment fits more easily (but costs more in total interest — check with the loan calculator).
- Improve your credit score — better rates mean lower instalments for the same amount. See our credit score guide.
- Declare all income — side hustles with bank-statement proof count with many lenders.
Why affordability matters before you apply
Since the National Credit Act, a lender cannot legally approve a loan you can't afford — doing so is "reckless lending". That protects you, but it also means an application that fails the affordability test is simply declined, which leaves an enquiry on your credit record. Checking your realistic limit here first means you apply for an amount likely to be approved, keeping your record clean.
A common guideline is to keep all your debt repayments under 30–40% of your net income. This calculator is more conservative: it works from your actual disposable income (income minus expenses minus existing debt), then caps a safe new instalment at 70% of what's left — closer to how a responsible lender assesses you.
Frequently asked questions
How do lenders calculate affordability in South Africa?
They verify your income, subtract your existing debt repayments and minimum living expenses, and check the new instalment fits in what remains. If it doesn't, approving the loan would be reckless lending, which is illegal under the NCA.
What percentage of my income can go to loan repayments?
There's no single legal percentage, but keeping total debt repayments under 30–40% of net income is a widely used guideline. This tool uses your real disposable income rather than a flat percentage, so it adapts to your actual expenses.
Does this guarantee I'll be approved?
No — it's an estimate to guide you. Each lender runs its own affordability assessment and credit check. But borrowing at or below the figure shown here gives you a much better chance of approval.