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Borrowing

Comparing personal loan costs

The interest rate is one line. Initiation fees, monthly service fees and the term decide the rand you pay back.

Reviewed 28 October 2026 by the WiT Money editorial team. This is general information, not a recommendation from a named adviser.

Two loans with the same interest rate can cost different amounts once fees are added. Two loans with different rates can reverse that result if one runs for much longer. The figure to ask for is the total amount payable, on the amount you actually need, over the months you can live with.

The National Credit Act caps initiation fees, service fees and interest. The caps change. A comparison that prints an old cap as if it were today's law is not a comparison. WiT Money leaves provider rates unpublished until they are checked.

A worked way to look

Take the quote. Put the amount, the rate, the months, the initiation fee and the monthly service fee into the loan calculator. Then shorten the term and look again. The instalment rises. The interest falls. Pick the shortest term that still leaves rent, food and transport intact.

Credit life

If the quote includes credit life, ask for the instalment without it and whether you may cede existing cover. The premium is part of the monthly cost even though it is not interest.

What not to compare

Do not compare a 'from' rate in an advert with a rate a friend was charged. Do not compare a loan with a card minimum payment. And do not compare a registered lender with someone who wants your PIN.

Questions readers ask

Is the lowest rate the cheapest loan?

Not if the fees or the term are higher. Use the total payable.

Should I take a longer term to qualify?

A longer term can make the instalment fit an assessment and still be a poor idea. If the only way the debit order fits is to stretch the loan past the life of the thing you bought, reconsider the purchase.

Related

Sources

Page updated 28 October 2026. A source date is the day WiT Money checked that page, not a promise the institution has not changed it since.