Loan Envelope Across Featured Lenders
| Parameter | Typical Minimum | Typical Maximum |
|---|---|---|
| Loan amount | R500 | R350 000 |
| Loan term | 1 month (30 days) | 84 months (7 years) |
| Short-term interest rate | Up to 5% per month (NCA cap) | 5% per month (NCA cap) |
| Personal loan interest | Repo rate + up to 21.5% p.a. (NCA cap) | Repo rate + 21.5% p.a. |
| Initiation fee | Up to R165 + 10% of amount above R1 000 (NCA cap) | R1 140 (NCA cap) |
| Monthly service fee | Up to R60 + VAT/month (NCA cap) | R69 incl. VAT |
| Credit life insurance | Optional (NCA-capped) | Varies by lender |
| First-loan ceiling (short-term) | R500 | R4 000–R8 000 depending on lender |
| Disbursement speed | 15 minutes (some lenders) | 1–2 business days |
All rates and fees above are governed by the National Credit Act 34 of 2005 and the National Credit Regulator (NCR). No registered SA credit provider may legally exceed these caps.
How the NCA Protects You
The National Credit Act (NCA) mandates that every registered credit provider must:
- Complete an affordability assessment before approving any loan (NCA Section 81).
- Provide a pre-agreement quotation disclosing the total cost of credit before you sign (NCA Section 92).
- Adhere to NCR fee caps on initiation fees, service fees and interest.
- Report your credit performance to one or more credit bureaux.
Cost Example — Short-Term Loan
For illustration: a R3 000 short-term loan over 30 days from an NCR-registered lender at NCA maximum rates:
- Interest at 5% per month = R150
- Initiation fee = R165 + 10% × (R3 000 − R1 000) = R365
- Monthly service fee = R69
- Estimated total repayable ≈ R3 584
This example is illustrative only. Actual costs vary by lender. Always request a pre-agreement quotation.
Borrower Requirements (Typical Across Featured Lenders)
- 18 years or older with a valid South African ID.
- Permanent resident or SA citizen.
- Active South African bank account in your own name.
- Verifiable income (salary, pension, self-employment).
- Latest 1–3 months' bank statements or open-banking consent.
Risk warning. Short-term credit can carry an effective annual rate exceeding 60%. Use it only for genuine emergencies and always confirm you can repay on time. Missed payments result in penalty interest, credit-bureau listings and possible collection proceedings.
FAQ — terms
What is the maximum legal interest rate on a short-term loan in South Africa? The NCA caps short-term credit interest at 5% per month (60% per annum).
Are there loans with 0% interest on Code Cash? Some lenders advertise first-loan promotions at reduced rates. Always check the full pre-agreement quotation for fees.