How to Compare Personal Loans
Comparing personal loan offers in South Africa is harder than it should be. Lenders quote rates differently, some include credit life in the instalment and some don't, and the upfront NCA fees can be capitalised (added to the loan) or paid separately. This calculator puts all three offers on the same footing — same NCA fees, same credit life treatment, same amortisation formula — so the only variables are the ones the lender actually controls: the rate, the term, and the amount.
The single most important column in the results is Total Cost — not the monthly instalment. A lower instalment over a longer term almost always means more interest overall. For example, a R50,000 loan at 22% over 36 months costs R1,890/month and R18,000 in interest. The same loan over 60 months drops to R1,395/month but pushes interest to R33,700. The monthly relief is real, but you pay nearly double for it.
What to compare
- Interest rate: Check it against the NCA maximum (repo + 21%). If it's higher, the loan is illegal.
- Term: Shorter terms mean higher instalments but lower total cost. Choose the shortest term you can afford.
- Credit life: Ask whether it's included in the quoted instalment. You have the right to use your own policy.
- Initiation fee: Capped at R1,207.50 incl. VAT. Some lenders waive it as a promotion — that's a real saving.
- Early settlement terms: Some lenders charge more than others to settle early. Read the fine print.
Related Tools
- Personal Loan Calculator — single loan with full breakdown.
- Early Settlement Calculator — see what you'd save by settling early.
- Debt Consolidation Calculator — combine multiple debts into one.
- Guide: What a Personal Loan Really Costs
Disclaimer: Finance Atlas is not a registered FSP. Estimates only, not financial advice.