So, you’re thinking about taking out a loan from Capitec? Smart move—or maybe a necessary one. Either way, the big question is: How much is Capitec’s loan interest, really?
I’ve been there. A few years back, I needed some quick cash to fix my car (because, of course, it broke down right before a road trip). Capitec seemed like the easiest option, but I didn’t fully understand how their interest worked. Spoiler: I learned a few things the slightly expensive way.
Let’s break it all down—interest rates, fees, hidden surprises, and how to make sure you don’t end up paying more than you bargained for.
First things first—Capitec’s interest isn’t just one flat rate. It depends on:
Your credit score (the better it is, the lower your rate)
The loan amount (bigger loans can have better rates, but not always)
The repayment term (longer terms = more interest)
Right now, their interest rates range between 12.9% and 24.5% per year, but this can change based on the above factors.
Good question. Let’s just say Capitec isn’t the cheapest, but it’s also not the most expensive. For example:
Standard Bank: ~13.25% - 23%
Nedbank: ~15.5% - 27.75%
African Bank: ~15% - 27.5%
So, Capitec sits somewhere in the middle. But here’s the kicker—their loans are fast and easy to get. That convenience can be worth a slightly higher rate if you’re in a pinch.
Picture this: It’s a Friday afternoon. I’m packing for a weekend getaway when—clunk—my car decides it’s done. The mechanic’s verdict? R3,500 for repairs.
I didn’t have that lying around, so I did what any desperate person would do—I opened the Capitec app.
I applied for a R5,000 loan (because why not have a little extra buffer?). The app asked a few questions, checked my credit score, and boom—approved in minutes.
Interest rate? 19.5%. Not amazing, but not terrible.
Repayment term? 12 months.
Monthly payment? About R480.
Seemed manageable. I took it.
Fast forward to the first repayment. I checked my statement and realized:
Total repayment: R5,760
Total interest: R760
That’s an extra R760 just for borrowing R5,000. Was it worth it? At the time, yes—because I needed the car fixed. But would I do it again for something non-urgent? Probably not.
Interest isn’t the only thing that eats into your money. Capitec also charges:
Initiation fee: Up to R1,150 (depending on loan amount)
Monthly service fee: R69
So, on my R5,000 loan:
Initiation fee: R165 (not too bad)
Monthly fee: R69 x 12 = R828
Total fees: R993
Total interest: R760
Actual cost of the loan: R1,753
Yikes. That’s 35% of the loan amount in fees and interest.
Probably. If I had shopped around or waited to save up, I could’ve avoided some of those costs. But in an emergency? Sometimes you just need the money now.
Want to avoid my mistakes? Here’s how to score a lower rate:
The better your score, the lower your interest. Pay bills on time, reduce debt, and check your credit report for errors.
It’s tempting to take extra "just in case," but every rand adds to the interest.
Longer terms = smaller monthly payments but way more interest.
If you’ve been a good customer, call them and ask for a better rate. Sometimes it works!
If you need quick cash and can repay it fast, maybe. But if you’re borrowing for something non-urgent, consider alternatives:
Savings? Even a little each month beats paying interest.
Family/friends? No interest (but, uh, awkward if you don’t pay back).
Other lenders? Compare rates before committing.
For emergencies—yes. For anything else—I’d think twice. That interest adds up faster than you’d expect.
Ever taken a Capitec loan? How was your experience? Better (or worse) than mine? Drop a comment—let’s swap stories!
And if you’re about to apply for one, good luck! Just do the math first. Your future self will thank you.