Know what your monthly instalments would be on a loan of a certain size and term.
If life was perfect, you wouldn't fear unexpected and unavoidable expenses, and opportunity - whose timing is often off - would only present itself when you were most prepared for it. But life isn't perfect, and sometimes even the most well prepared of us need to rely on a personal loan to make ends meet or bring a plan together.
When calculating the total cost of a loan, take the following three factors into account:
Interest: your interest rate is determined by your credit score
Fees: these include an initiation fee and monthly service fees
Credit insurance: a credit provider might require you to have credit insurance.
Never take out a loan only because you qualified for it. Always calculate the total cost of a loan as well as your monthly repayments to ensure that you can afford it.
Payment options range from 3 to 60 months. Min APR from 19,7% to Max APR of 72%.
*Representative example: Credit of R5,000 borrowed for 3 months. Monthly interest: R21 (reducing monthly). Once-off Initiation fee: R644. Monthly admin fee R68. Representative APR 72%. Total amount payable: R5,908.