Personal Loans in South Africa: Compare Rates & Apply Online
Borrow R1 000 – R250 000 over 6 to 72 months. Tell us what you need and we'll match you with NCR-registered lenders — see your offers side by side before you sign anything, completely free.
What is a personal loan?
A personal loan is an unsecured loan — you don't put up your house or car as security. The lender approves you based on your income, expenses and credit record, then pays the money into your bank account. You repay it in equal monthly instalments that include interest and fees, all disclosed upfront in a pre-agreement quote as required by the National Credit Act (NCA).
Because there is no collateral, interest rates are higher than home or vehicle finance, but far lower than short-term payday loans — which makes personal loans the better option for larger amounts or longer terms.
How much does a personal loan cost in South Africa?
The NCA caps every cost a lender may charge on an unsecured personal loan:
| Cost item | Legal maximum (NCA) | Notes |
|---|---|---|
| Interest rate | Repo rate + 21% per year | ± 28% per year at current repo rate |
| Initiation fee | R165 + 10% of amount above R1 000 (max R1 050) | Once-off, may be added to the loan |
| Monthly service fee | R60 per month | Plus VAT |
| Credit life insurance | R4.50 per R1 000 owed | Only if required by the lender |
Example: on a R20 000 loan over 24 months at 28% per year, you would pay roughly R1 160 per month, with a total repayment of about R27 800 including the initiation and service fees. Use our loan repayment calculator to model your own numbers.
What do I need to qualify?
- Be 18 years or older with a valid South African ID
- Regular monthly income (most lenders require R3 000+ per month)
- Latest payslip or 3 months' bank statements
- An active South African bank account in your name
- Pass the lender's affordability assessment — a legal requirement under the NCA
See our full loan requirements guide for the complete document checklist, or check how much you can afford to borrow first.
Get your personal loan offers
2-minute form · NCR-registered lenders only · No effect on your credit score
Which lenders offer personal loans in South Africa?
All major banks (Capitec, Standard Bank, FNB, Absa, Nedbank, African Bank) plus a range of registered online lenders offer personal loans. Typical ranges from our partner panel:
| Lender type | Typical amount | Typical term | Best for |
|---|---|---|---|
| Online lenders | R1 000 – R40 000 | 6 – 24 months | Speed — same-day payout |
| Banks | R5 000 – R350 000 | 12 – 72 months | Larger amounts, lower rates for good credit |
| Loan brokers | R100 – R250 000 | 3 – 72 months | Comparing many lenders at once |
Personal loan vs payday loan: which should I choose?
Choose a personal loan if you need more than R8 000 or want to repay over more than 6 months — the annual interest cap makes it much cheaper over time. Choose a payday loan only for small, genuinely short-term emergencies you can repay from your next salary. If you're juggling several debts, a debt consolidation loan may reduce your total monthly payment instead.
Frequently asked questions
What is the maximum interest rate on a personal loan?
Under the National Credit Act, interest on unsecured personal loans is capped at the repo rate + 21% per year — roughly 28% per year at the current repo rate. Lenders may charge less depending on your credit profile.
How long does approval take?
Online lenders often decide within minutes and pay out the same or next business day. Banks may take 24–72 hours, especially for larger amounts.
Can I repay my personal loan early?
Yes. The NCA lets you settle small and intermediate agreements early without penalty. For large agreements (over R250 000) the lender may charge a maximum of 3 months' interest as an early settlement fee.
Will comparing loans on LoanNow affect my credit score?
No. We don't run credit checks. A credit check only happens when you apply directly with a lender you've chosen.