Calculate your loan repayment
Calculate personal loan repayment for all banks in south africa. Enter the amount you need then choose your repayment term . We'll tell you the monthly and total cost of your loan.
Please note that interest rates and loan terms are subject to individual credit assessments and may vary based on your credit profile and the bank's policies. It's advisable to contact the respective banks directly or visit their official websites for the most current and personalized information.
| Bank | Loan Amount Range | Interest Rate (per annum) | Repayment Term | Additional Information |
|---|---|---|---|---|
| African Bank | R500 – R250,000 | Starting from 12.75% | 3 – 72 months | Transparent fees; no hidden charges. |
| Capitec Bank | R1,000 – R250,000 | Starting from 12.9% | 1 – 84 months | Quick approval process; funds available immediately upon approval. |
| FNB | R1,000 – R300,000 | 13% – 27.25% | 1 – 60 months | Personalized interest rates based on credit profile; option to top up existing loans. |
| Nedbank | R2,000 – R300,000 | 12.75% – 27.75% | 6 – 72 months | Tailored interest rates based on credit profile; online pre-qualification tool available. |
| Absa | R250 – R350,000 | 13.25% – 26.50% | 1 day – 84 months | Flexible loan options; competitive interest rates. |
| Standard Bank | R5,000 – R300,000 | 12.75% – 24.75% | 12 – 72 months | Standardized interest throughout the tenure; debt protection options available. |
Have you ever felt that sinking feeling when your loan application gets rejected? I have. A few years back, after missing some payments during a rough patch, my credit score took a nosedive. Suddenly, doors that used to be open slammed shut in my face. It's a painful reality many South Africans face every day.
But here's the thing – having bad credit doesn't mean you're completely out of options. It just means you'll need to navigate a more challenging landscape, with higher interest rates and stricter conditions attached to any financial help you can get.
This guide is my way of sharing what I've learned through both personal experience and years of financial research. I want to help you understand what loan options are available when your credit isn't stellar, what risks to watch for, and most importantly, how to improve your financial situation for the long term.
"Bad credit" – two simple words that can cause so much stress. But what does it actually mean?
Your credit score is essentially a financial report card. It's a number that tells lenders how reliable you are when it comes to paying back what you borrow. In South Africa, these scores typically range from 0 to 999, depending on the credit bureau.
Here's how these scores generally break down:
If you're sitting below that 600 mark, you're in what lenders consider the "bad credit" territory. I remember checking my score after my financial struggles and seeing a dismal 542 – a number that made my stomach drop.
Why do lenders care so much about these numbers? It's simple – they want to minimize their risk.
Think about it. If you were lending someone money, wouldn't you want to know if they had a history of paying people back? That's exactly what a credit score tells lenders. The lower your score, the higher the risk you represent to them.
This risk assessment directly impacts:
Traditional banks, with their strict lending criteria, often reject applicants with bad credit outright. They're not being mean – they're just following their risk management protocols. But that rejection can feel incredibly personal when you're in desperate need of funds.
Bad credit doesn't appear out of nowhere. Usually, it's the result of specific financial behaviors or circumstances. Common causes include:
Missed or late payments: This was my downfall. After losing a consulting contract, I missed payments on my car loan for three months. Each late payment chipped away at my credit score.
Too much debt and high credit utilization: Maxing out your credit cards or using too much of your available credit makes lenders nervous. I've seen friends spiral into debt this way, using one credit card to pay off another.
Defaulting on loans and being blacklisted: If you stop paying altogether, you might find yourself on credit bureaus' blacklists, which can haunt your financial life for years.
No credit history: Sometimes called "credit invisibility," this affects many young South Africans or those who've never used credit before. Without a track record, lenders don't know whether to trust you.
Court judgments and adverse listings: These serious black marks on your credit report can result from legal actions taken against you for unpaid debts.
When traditional banks turn you away, where can you turn? Fortunately, several loan options exist specifically for people with less-than-perfect credit. Let's explore them.
Unsecured personal loans don't require any collateral (like a house or car) to back them up. For people with bad credit, these loans are available but come with strings attached.
Eligibility requirements typically include:
The catch? The interest rates can be eye-watering. I remember applying for a R15,000 unsecured loan after my credit score dropped, and the interest rate offered was a shocking 28% – nearly double what I would have qualified for with good credit.
Loan amounts typically range from R500 to R250,000, with repayment periods from 3 to 72 months, depending on the lender and your specific circumstances.
Need money tomorrow? Payday loans promise quick cash – often within 24 hours of approval. They're typically small amounts meant to tide you over until your next paycheck.
But beware! The convenience comes at a steep price. These loans have notoriously high interest rates, sometimes reaching the maximum allowed by the National Credit Act (currently 60% per year for short-term loans).
A friend once borrowed R3,000 through a payday loan to cover an emergency car repair. By the time she paid it back six weeks later, she had incurred over R1,200 in interest and fees. That's an effective annual interest rate that would make your eyes water!
If you own something valuable, using it as collateral can open doors to better loan terms, even with bad credit.
Secured loans work like this: you offer an asset (your car, house, or other valuables) as a guarantee. If you can't repay the loan, the lender has the right to take and sell your asset to recover their money.
The upside? Lower interest rates and higher loan amounts than unsecured options. My colleague used his paid-off car as collateral for a R80,000 loan at 15% interest – much better than the unsecured options available to him with his credit score of 570.
The obvious downside? You might lose your valuable asset if you can't keep up with payments. Never use essential assets like your primary home unless you're absolutely certain you can manage the repayments.
Juggling multiple debt payments can be overwhelming – and expensive. Debt consolidation loans allow you to combine multiple debts into a single loan, ideally with a lower overall interest rate.
For people with bad credit, these can be a lifeline. Even if the interest rate isn't much better than your current debts, having just one payment to manage can reduce the risk of missed payments and further credit damage.
I used this approach myself, consolidating three high-interest credit cards and a store account into one loan. While the interest rate wasn't amazingly low, the simplified payment schedule helped me avoid late fees and gradually rebuild my credit.
Before applying, calculate carefully to ensure the new loan truly saves you money or improves your situation.
Running a business with bad personal credit adds another layer of challenge. However, some lenders focus more on your business performance than your personal credit history.
Alternative business financing options include:
When my cousin started her catering business despite personal credit issues, she secured funding through a microfinance institution that evaluated her business plan and early client contracts rather than fixating on her credit score.
Community-based lending offers interesting alternatives to traditional financial institutions.
P2P lending platforms connect borrowers directly with individual investors willing to lend money. Interest rates are set based on perceived risk, but without the overhead costs of traditional banks, these rates can sometimes be more competitive for bad credit borrowers.
Microfinance institutions specifically serve low-income individuals and small businesses who lack access to conventional banking services. They often combine loans with financial education and support.
A friend in Limpopo secured a small business loan through a microfinance organization that also provided basic accounting training – something traditional banks don't typically offer.
Don't overlook government and non-profit initiatives designed to help South Africans in financial need:
NSFAS (National Student Financial Aid Scheme) provides loans and bursaries for students, with credit history rarely being a deciding factor.
SEDA (Small Enterprise Development Agency) offers support to small businesses, including financial assistance that may be accessible despite bad credit.
Debt relief programs, while not loans themselves, can help restructure existing debts to make them more manageable.
Most major South African banks – Standard Bank, ABSA, Nedbank, and FNB – have strict credit requirements. With bad credit, your application will likely be rejected before it even gets a proper review.
Alternative lenders, however, have emerged specifically to serve this gap in the market. These include fintech companies, specialized credit providers, and online lenders with more flexible criteria.
When comparing lenders, look beyond the advertised interest rates. Compare:
I spent nearly a week researching different lenders before applying for my consolidation loan – time well spent given the long-term impact of this decision.
Several established lenders specialize in bad credit loans in South Africa:
African Bank offers personal loans even to people with imperfect credit histories, though interest rates reflect the risk level.
FinChoice provides flexible repayment options and considers factors beyond just credit scores in their approval process.
Wonga specializes in short-term loans with quick approval, though their interest rates tend to be on the higher end.
Lulalend focuses on business loans and considers business performance alongside personal credit history.
RainFin operates a peer-to-peer lending platform that might connect you with investors willing to take a chance on your situation.
My experience with African Bank was surprisingly positive – their application process was straightforward, and the customer service representative actually took time to explain my options rather than rushing me through.
When desperate, it's tempting to turn anywhere that offers quick money. Resist that urge!
Unregistered lenders, commonly known as loan sharks or "mashonisas" in townships, operate outside the law. They charge exorbitant interest rates (sometimes 50% per month or more), use intimidation tactics, and may demand your ID, bank cards, or even property deeds as "security."
A neighbor once borrowed R5,000 from a loan shark and ended up paying back over R30,000 before the nightmare ended. Some victims never manage to escape the cycle.
Always verify that any lender is registered with the National Credit Regulator (NCR). You can check this on the NCR website or by calling them directly. Registered lenders are bound by legal limits on interest rates and collection practices.
Before applying for a new loan, try to reduce your existing debt burden.
Paying off smaller debts completely can:
I managed to pay off two store accounts and a small personal loan before applying for my consolidation loan. Even though my credit score hadn't fully recovered, having fewer active debts significantly improved my approval odds.
If you own assets of value, secured loans are almost always easier to obtain with bad credit.
By offering collateral, you're reducing the lender's risk, which typically translates to:
Of course, this comes with the serious risk of losing your asset if you default. Never secure a loan with something you absolutely cannot afford to lose.
Having someone with good credit vouch for you can dramatically improve your loan prospects.
A co-signer or guarantor essentially promises to repay the loan if you can't. This person is putting their own credit score and financial security on the line for you – a huge commitment that shouldn't be taken lightly.
When my brother needed a personal loan after his divorce impacted his credit, I agreed to co-sign after we had a serious discussion about repayment plans and what would happen if he couldn't pay. We even put our agreement in writing – something I'd recommend to anyone in this situation.
Lenders want reassurance that you can repay the loan, regardless of your credit history.
Strong evidence of stable income can offset credit concerns. Prepare:
When applying for my loan, I included a letter from my employer confirming my position and tenure, which seemed to help overcome hesitations about my credit history.
With bad credit, high interest rates are unavoidable. Understanding exactly how much this will cost you is crucial.
In South Africa, interest rate caps are regulated by the National Credit Act:
In practice, what does this mean? On a R10,000 unsecured loan with a 33% interest rate over 12 months, you'll pay approximately R1,870 in interest alone – nearly 19% of the original loan amount.
Always ask for the Annual Percentage Rate (APR) to understand the true cost over time.
Interest is just one part of the cost equation. Watch for:
Initiation fees: These one-time charges for setting up the loan can be up to R1,050 plus 10% of the amount over R10,000 (capped at R10,000).
Service fees: Monthly administration fees, capped at R60 per month plus VAT.
Credit life insurance: Often required and can add significantly to your monthly payment.
Late payment penalties: These can quickly accumulate if you miss payments.
Early repayment penalties: Some lenders charge fees if you pay off the loan before the full term.
I once almost signed a loan agreement without noticing a R1,500 "administrative fee" buried in the fine print. Always read everything, even if it takes time.
Loan agreements are deliberately complex and intimidating. Don't let this stop you from understanding what you're signing.
Key elements to review:
If something isn't clear, ask questions until you understand. If the lender seems annoyed by your questions or reluctant to explain terms clearly, that's a serious red flag.
Bad credit loans can solve immediate problems but create long-term ones if you're not careful.
The high interest rates mean a large portion of your monthly payment goes toward interest rather than reducing the principal amount. This can make it feel like you're running on a financial treadmill – making payments but never getting ahead.
Many people end up taking new loans to pay existing ones, creating a dangerous spiral. A colleague started with one payday loan for R3,000 and ended up juggling four different loans totaling over R45,000 within eight months. Breaking this cycle often requires drastic measures like debt counseling or even bankruptcy.
Defaulting on a loan has serious consequences:
I've witnessed the stress this causes. My cousin stopped answering his phone altogether after defaulting on a loan, living in constant fear of debt collectors. This avoidance only made his situation worse, as penalties and interest continued accumulating.
When you're desperate for a loan, you're vulnerable to scammers. Common red flags include:
A friend nearly lost R2,500 to a scammer who requested an "insurance fee" for a promised R30,000 loan. Thankfully, she checked the NCR register first and discovered the company wasn't legitimate.
Remember: legitimate lenders never ask for payment before providing a loan.
Sometimes the best loan is the one you don't take.
Before borrowing, exhaust other options:
When I needed to replace my refrigerator, instead of taking a loan, I sold my rarely-used gaming console and worked extra weekend shifts for a month. It wasn't easy, but I avoided additional debt during an already precarious financial time.
Many creditors would rather work with you than send your account to collections.
If you're struggling with existing debts, contact your creditors directly. You might be surprised at their willingness to:
I've successfully negotiated with three different creditors during financial hardships. One credit card company even agreed to freeze my interest for six months while I caught up on payments – something I never would have known was possible if I hadn't asked.
Professional help is available, often at no cost.
The National Credit Regulator oversees registered debt counselors who can:
Many banks and insurance companies also offer free financial advice services to customers. These resources can help you develop strategies for managing debt without taking on more loans.
Sometimes bad credit isn't entirely your fault.
Credit reports often contain errors that can artificially lower your score. You're entitled to one free credit report from each major bureau (TransUnion, Experian, Compuscan, and XDS) annually.
When reviewing your report, check for:
I discovered a default judgment on my report for a store account I had never opened – clearly a case of identity theft or administrative error. After filing a dispute, the listing was removed, and my score increased by 43 points almost immediately.
Not all debt repayment strategies are equally effective.
Two popular approaches include:
The Snowball Method: Pay minimum amounts on all debts, but put extra money toward your smallest debt first. Once it's paid off, apply that payment amount to the next smallest debt, creating a "snowball" effect.
The Avalanche Method: Focus extra payments on the debt with the highest interest rate first, then move to the next highest. This saves more money on interest but might take longer to eliminate individual debts.
I used a combination approach – paying off two small accounts quickly for the psychological win, then tackling my highest-interest debt. This balanced emotional satisfaction with mathematical optimization.
Counterintuitively, responsible use of new credit can help rebuild your score.
Consider:
The key is using these tools responsibly – keeping balances low (under 30% of available credit) and never missing payments.
After six months of perfect payments on a secured credit card with a R2,000 limit, I qualified for a standard credit card with a R5,000 limit. Within 18 months, my credit score had improved from the low 500s to just over 650 – good enough to qualify for standard bank loans again.
Let's be honest – having bad credit makes borrowing money more difficult and expensive. But it doesn't leave you without options.
Whether you decide to pursue a bad credit loan or explore alternatives, the most important thing is making informed decisions rather than panic-driven ones. Take time to research lenders, understand terms, and calculate the full cost of any loan before signing.
Remember that your current credit situation isn't permanent. With disciplined financial habits, strategic debt management, and patience, you can gradually rebuild your creditworthiness.
My own journey from credit disaster to financial stability took nearly three years. It wasn't easy or quick, but the peace of mind that comes with having good credit options again was worth every sacrifice along the way.
What steps will you take today to improve your financial future?