South Africa Personal Loan Calculator: Repayments and Fees

How it's worked out

Repayments use the reducing-balance method: interest is charged only on what you still owe, so more of each instalment goes to capital as the loan runs down -- the same method banks use for most personal and vehicle loans in South Africa.

The interest rate is capped by law. Under the National Credit Act's Regulation 42, Table A, unsecured credit transactions -- ordinary personal loans -- can't be charged more than the repo rate plus 21 percentage points a year. The South African Reserve Bank raised the repo rate to 7.25% on 25 September 2026, which puts the legal maximum at 28.25% a year -- that's what this calculator uses by default. Lenders usually charge less for borrowers with a good credit score and steady income, often from around 13%-15% upward, so swap in the rate on your own offer once you have one.

The once-off initiation fee is also capped: R165 plus 10% of whatever you borrow above R1,000, up to a ceiling of R1,050 excluding VAT (R1,207.50 including VAT) -- Regulation 42, Table B. Almost every loan over about R9,850 hits that ceiling, which is why the calculator always shows R1,207.50. The NCR also caps the fee at 15% of what you borrow, but that only bites on loans under roughly R7,000.

On top of your repayment, lenders can add a monthly service fee of up to R60 excluding VAT (R69 including VAT) for administering the loan -- Regulation 44. That's not included in the repayment figure above, so budget for it separately each month.

Frequently asked questions

What's the maximum interest rate on a personal loan in South Africa?

28.25% a year, as of September 2026. The National Credit Act caps unsecured credit -- ordinary personal loans -- at the SARB repo rate plus 21 percentage points, and the repo rate is 7.25% since the Reserve Bank's 25 September 2026 decision. The cap moves whenever the repo rate does.

What fees can a lender add to a personal loan besides interest?

Two: a once-off initiation fee, capped at R1,050 excluding VAT (R1,207.50 including VAT) for most loan sizes, and a monthly service fee capped at R60 excluding VAT (R69 including VAT) for the life of the loan. Both limits come from the National Credit Act, not the lender.

Does a longer repayment term make a personal loan cheaper?

No -- it lowers your monthly instalment but increases the total interest you pay. Borrow R50,000 at 28.25% and you'd pay about R4,831 a month over 12 months (R7,977 total interest) versus about R1,564 a month over 60 months (R43,860 total interest). Pick the shortest term your budget can handle.

Can a lender legally charge more than the National Credit Act maximum?

No. Any registered credit provider charging above the Regulation 42 caps is breaking the law, and you can report them to the National Credit Regulator. Check that your lender is NCR-registered before you sign anything.

Why would my own quote be lower than the calculator's default rate?

The calculator starts at the legal maximum so you always see the worst case. Lenders actually price unsecured loans by risk, so a strong credit score and steady income usually get you a rate well below the cap, sometimes from around 13%-15% a year. Once you have an offer, put its rate into the calculator instead.

How does a personal loan's cost compare with a store card or short-term loan?

By law it depends on the type of credit. Credit facilities such as store and credit cards are capped lower, at the repo rate plus 14 percentage points, while short-term credit (small loans repaid within a month) can legally cost up to 5% a month on a first loan, which is far more expensive over a year than even the 28.25% cap on unsecured personal loans. Compare the total cost over the full term, not just the monthly instalment, before you choose.