Personal loans compared
Written byFinmart Editorial Team
What to compare before you apply
| Loans | Loan amount | Loan term | Interest rate | Age |
|---|---|---|---|---|
 Dengoo | R500 – R350,000 | 1 – 365 days | 3.65% – 58.4% p.a. | |
 Finpug | R500 – R50,000 | 61 – 365 days | 0% – 36% APR | |
 MoneyHello | R500 – R250,000 | 3 – 72 months | Up to 102.14% APR | 18+ |
 Arcadia Finance | R100 – R350,000 | 3 – 72 months | Up to 28% APR | 18+ |
 Creditum | R500 – R350,000 | 6 – 72 months | 11% – 28% p.a. | 18+ |
 FatCat Loans | R1,000 – R350,000 | Up to 72 months | ||
 Letocredit | Up to R15,000 | 61 – 365 days | 0% – 36% APR | 18+ |
 MyLoan | R500 – R500,000 | 6 – 72 months | 11% – 28% p.a. |
Calculate your monthly repayment
What is a personal loan?
A personal loan is a fixed amount of credit that you receive in one payment and repay in equal monthly instalments over an agreed term. In South Africa most personal loans are unsecured: you do not have to offer your car or home as collateral. Lenders rely on your income, your credit record and an affordability assessment instead.
Personal loans are offered by banks, specialised lenders and online credit providers, typically from about R8,000 up to R250,000–R350,000, repayable over 6 to 72 months. Smaller amounts that must be repaid within 6 months fall under short-term credit, which has different cost limits.
How personal loans work in South Africa
- Application. You apply online or in a branch and consent to a credit check.
- Assessment. The lender checks your credit record with the bureaus and calculates whether you can afford the instalment after your existing debts and living expenses.
- Quote. You receive a pre-agreement statement with the interest rate, fees, instalment and total amount repayable.
- Agreement and payout. After you sign, the money is paid into your bank account — often on the same or next business day.
- Repayment. Instalments are collected by debit order, usually on your payday. Most lenders now use DebiCheck, which you approve once in your banking app.
Secured and unsecured personal loans
| Unsecured personal loan | Secured loan | |
|---|---|---|
| Collateral | None | An asset such as a vehicle or property |
| Approval based on | Income, credit record, affordability | Value of the asset and affordability |
| Interest | Higher, capped at about 28% a year in 2026 | Usually lower |
| Risk for you | Collections and a negative credit record if you default | You can lose the asset if you default |
| Typical use | Home improvements, medical costs, education, emergencies | Larger amounts, often linked to the asset |
What you can use a personal loan for
Lenders rarely restrict how you use the money. South Africans most often take personal loans to:
- pay for home repairs or improvements
- cover medical or dental bills
- pay school or university fees
- replace a broken appliance or repair a car
- combine several expensive debts into one instalment — see consolidation loans
A personal loan is not a good fit for day-to-day expenses such as groceries or rent: those costs come back every month, while the instalment stays for years.
Who qualifies for a personal loan?
- Be 18 or older (a few lenders set the minimum at 21)
- Have a valid South African ID; some lenders also accept permanent residents
- Earn a regular income that is paid into your own bank account
- Have a South African bank account and a cell phone number
- Pass the lender’s credit check and affordability assessment
Banks often ask for at least 3 to 6 months with your current employer and a minimum monthly income. Online lenders and loan matching services are usually more flexible about employment history but look closely at your bank statements.
What a personal loan costs
The total cost of a personal loan consists of interest, a once-off initiation fee, a monthly service fee and, for terms longer than 6 months, often credit life insurance.
| Cost | Short-term credit (up to R8,000, up to 6 months) | Unsecured credit (personal loans) |
|---|---|---|
| Interest | 5% per month on the first loan, 3% per month on further loans in the same calendar year | Linked to the repo rate (repo + 21 percentage points), about 28% a year in 2026 |
| Initiation fee | R165 plus 10% of the amount above R1,000, never more than R1,050 plus VAT | R165 plus 10% of the amount above R1,000, never more than R1,050 plus VAT |
| Monthly service fee | Up to R60 plus VAT (R69) | Up to R60 plus VAT (R69) |
| Credit life insurance | Usually not required | Can be required for terms over 6 months; you may use your own policy |
Loan matching services such as MyLoan and Creditum publish this representative example: a loan of R30,000 over 36 months at the maximum rate of 28% a year costs about R1,360 per month, including the initiation fee and monthly service fees.
How the term changes the total cost
The table shows a loan of R30,000 at 28% a year, excluding fees and insurance. A longer term lowers the instalment but increases the interest you pay.
| Term | Monthly instalment | Total repaid | Interest |
|---|---|---|---|
| 12 months | R2,895.18 | R34,742.16 | R4,742.16 |
| 24 months | R1,646.65 | R39,519.72 | R9,519.72 |
| 36 months | R1,240.91 | R44,672.67 | R14,672.67 |
| 60 months | R934.07 | R56,044.48 | R26,044.48 |
| 72 months | R864.20 | R62,222.68 | R32,222.68 |
Adding a financed initiation fee of R1,207.50 and a service fee of R69 per month raises the 36-month instalment to about R1,360 and the total repaid to about R48,955.
Banks, online lenders and loan matching services
Banks offer the lowest rates to existing clients with a strong credit record, but their approval process can take longer. Online lenders decide quickly and pay out fast, usually for smaller amounts. Loan matching services are not lenders themselves: they send one application to several registered lenders, so you receive multiple offers at once. The loan agreement is then concluded directly with the lender you pick.
Advantages and disadvantages of personal loans
| Advantages | Disadvantages |
|---|---|
| Larger amounts than short-term credit | Interest over several years adds up |
| Fixed instalment that is easy to budget for | Initiation fee, service fees and credit life insurance on top of interest |
| No collateral needed | Stricter credit and affordability checks |
| Can replace more expensive debt | Missed payments damage your credit record for years |
How to improve your chances of approval
- Get your free credit report and dispute any incorrect listings before you apply
- Pay down store cards and other small accounts to lower your debt-to-income ratio
- Apply for the amount you actually need — a smaller loan is easier to approve
- Make sure your salary is paid into the account whose statements you submit
- Compare first and apply only with lenders whose criteria you meet, to avoid unnecessary enquiries
What lenders look at when you apply
| Factor | Why it matters |
|---|---|
| Credit record | Your repayment history with other lenders shows how reliably you pay |
| Debt-to-income ratio | The share of your income already going to instalments |
| Employment and income stability | How long you have been employed and how regular your income is |
| Living expenses | What is left after rent, transport, school fees and groceries |
| Existing relationship | Banks often offer better rates to clients whose salary they already receive |
The affordability assessment is not a formality: a lender that grants a loan you clearly cannot afford is lending recklessly, and the agreement can be suspended by a court.
Mistakes to avoid with personal loans
- Comparing only the interest rate instead of the total amount repayable
- Choosing the longest term just because the instalment is lowest
- Accepting credit life insurance from the lender without checking whether your existing cover qualifies
- Applying with many lenders at once instead of comparing first
- Borrowing more than you need because a higher amount was approved
- Signing without reading the pre-agreement quote
Frequently asked questions about personal loans
How much can I borrow with a personal loan?
Lenders and loan matching services in South Africa offer personal loans of up to R250,000–R350,000. The amount you are approved for depends on your income, existing debt and credit record.
What is the maximum interest rate on a personal loan?
For unsecured credit the National Credit Act links the maximum to the repo rate, which puts it at about 28% a year in 2026. Customers with a strong credit record are often offered lower rates.
Is credit life insurance compulsory?
A lender may require credit life insurance for loans with a term longer than 6 months, but you are free to use an existing policy instead of the lender’s own cover.
Can I get a personal loan while under debt review?
Registered lenders generally decline applications while a debt review flag is on your credit record. Once your debt review is completed and the flag is removed, you can apply again.
Can I pay off my personal loan early?
Yes. You may settle at any time. Request a settlement quote from the lender; for larger loans, the lender may charge limited early settlement costs as allowed by the National Credit Act.
How long does approval take?
Online lenders often decide within minutes and pay out on the same or next business day. Banks can take one to a few business days, especially if they need additional documents.