How to compare loan offers in South Africa: a step-by-step method
To compare loan offers fairly, put the quotations side by side and compare the total you will repay in rands, then the term, the repayment date and the rules on settling early. The headline interest rate on its own tells you very little. This guide gives you a method, a table to copy and the facts that three lenders on this site state about themselves.
Key takeaways
- Compare the total repayable in rands, because interest, initiation fee, service fee and insurance all add to the cost.
- A 'from' rate is the lowest rate a provider uses. Your own quotation shows the rate you would actually pay.
- Match the repayment date and instalment to your pay date and your budget before you look at anything else.
- Ask about early settlement, insurance and what happens if you miss a payment.
- Mzansi Hub earns a commission if you apply through a lender link, and the lender alone decides whether to grant credit.
What should you compare when you look at loan offers?
Compare everything that changes the amount you pay or the way you pay it. Interest is only one line. A short-term loan also carries an initiation fee, a monthly service fee and sometimes a credit life insurance premium, and all of them are regulated and should be itemised in rands.
The National Credit Regulator (NCR) explains that the quotation must include the principal debt, the interest rate, the total amount payable under the agreement, the instalments and all fees, charges and interest. The quotation is therefore the document to compare, not a banner, a text message or a phone conversation.
Our guide on the cost of a short-term loan explains each charge in detail.
How do you compare offers step by step?
Work through the steps below in order, and use the same amount and the same repayment date for each lender so that the numbers can be compared.
Do the budget first. A cheap loan you cannot repay is more expensive than a dearer one that fits.
- Step 1: Decide the amount you need and the shortest term you can comfortably afford.
- Step 2: Check that each lender is registered with the NCR before you share documents.
- Step 3: Ask each lender for a pre-agreement statement and quotation for the same amount and term.
- Step 4: Write down the interest, initiation fee, service fee and insurance in rands.
- Step 5: Add them up and note the total repayable and the total cost of credit.
- Step 6: Check the instalment amount, the number of instalments and the date each one is collected.
- Step 7: Check the early settlement terms and the charges if you miss a payment.
- Step 8: Choose the offer that you can afford and understand, or decide not to borrow.
Why is the total cost more useful than the interest rate?
Because fees can outweigh interest on a small, short loan. The numbers below are invented round figures to show the idea, not quotes from any lender.
Imagine you borrow R2,000 for one month. Offer A has interest of R100 and fees of R150, so the total repayable is R2,250. Offer B has interest of R150 and fees of R60, so the total repayable is R2,210. Offer B has the higher interest and the lower total cost.
That is why the NCR's affordability regulations allow the quotation to disclose a credit cost multiple, and why credit insurance should be included in the total cost of credit. Whatever the label, add the rands up yourself and compare the final figure.
| Item (invented illustration) | Offer A | Offer B |
|---|---|---|
| Amount borrowed | R2,000 | R2,000 |
| Interest | R100 | R150 |
| Initiation and service fees | R150 | R60 |
| Total repayable | R2,250 | R2,210 |
These numbers are invented to show how the arithmetic works. Real quotations vary, and the NCR sets the limits that apply to interest and fees.
What does a 'from' interest rate mean?
Some providers advertise a rate that starts at a very low figure. A 'from' rate is the lowest rate the provider uses. The rate you are offered depends on the lender's assessment of your situation and appears in your own quotation, so always read that document and not the advertised figure.
Century states an interest rate 'from 0.1%' and Creditomax states 'from 0.01%' on their offer cards. These are the providers' statements. Neither figure tells you what your rate or your total repayable will be.
What does a comparison table look like?
Copy the table below onto paper or into your phone and fill in a column for each quotation. Leave a cell empty if the quotation does not state the item, then ask the lender for it.
| What to write down | Lender 1 | Lender 2 | Lender 3 |
|---|---|---|---|
| Registered with the NCR (yes or no) | |||
| Amount borrowed (R) | |||
| Interest (R) and rate type: fixed or variable | |||
| Initiation fee (R) | |||
| Service fee (R) | |||
| Credit life insurance (R), optional or required | |||
| Total repayable (R) | |||
| Number of instalments and amount of each (R) | |||
| Repayment date or dates | |||
| Early settlement terms | |||
| Charges if a payment is missed | |||
| Quotation valid until |
What do the lenders on this site state about their loans?
Mzansi Hub lists three lenders. The table shows what each provider states on its offer card. These are the providers' own statements and not our promises, and the amounts and terms you are offered depend on the lender's assessment.
Jabulani Money describes itself as a registered credit provider in South Africa. As with any lender, we recommend that you confirm the NCR registration yourself on the register. Century and Creditomax state that applicants must be South African citizens aged 18 to 70 with a valid identity document, and Jabulani Money states a minimum age of 18.
Providers also describe their service. Century describes a streamlined online application and flexible terms for short-term needs. Jabulani Money describes a simple online application with minimal paperwork. Creditomax says its scoring technology can reach a decision in under 15 minutes and mentions a first-loan offer, with terms applying. None of this is something we promise, and the lender's own quotation is what counts.
| Lender | Loan amount (provider states) | Term (provider states) | Interest (provider states) |
|---|---|---|---|
| Century | R500 to R8,000 | 5 to 180 days | From 0.1%; your rate is shown in your quote |
| Jabulani Money | R500 to R4,000 | Payday term | See your quotation |
| Creditomax | R500 to R15,000 | 1 to 365 days | From 0.01%; your rate is shown in your quote |
How does Mzansi Hub fit into the picture?
Mzansi Hub is an independent information site. We are not a lender, we do not make credit decisions and we do not rank one of these lenders above another. Each lender page has a link that opens the lender's own application journey.
We are an affiliate publisher. We may earn a commission if you apply through a lender link. The price to you does not change, and the lender, not Mzansi Hub, decides whether to grant credit after its own affordability assessment.
Use the facts above as a starting point for questions, then compare the real quotations. If you do not need a loan, the best comparison may be not to borrow.
What should you check before you sign?
Read the pre-agreement statement, the quotation and the credit agreement, and check that the numbers match. The NCR's consumer guide says the quotation is valid for five business days, and that a lender signing within that period must do so at the rate and costs it quoted.
Check the early settlement terms too. The NCR guide says a consumer may settle a credit agreement at any time, and that no penalty fee is payable for early settlement of a small or intermediate agreement. Ask the lender how it calculates the settlement amount and confirm it in writing.
If you cannot repay as agreed, speak to the lender early. Our guide on what to do if you cannot repay a loan sets out the steps.
Frequently asked questions
What is the best way to compare personal loans?
Ask each registered lender for a quotation for the same amount and term, then compare the total repayable in rands, the instalment, the repayment date and the early settlement terms.
Is the lowest interest rate always the cheapest loan?
No. Fees and insurance also add to the cost, and on a short loan they can outweigh interest. The total repayable is the fair comparison.
What does a 'from' rate mean on a lender's offer?
It is the lowest rate the provider uses. The rate you are offered depends on the lender's assessment and is shown in your own quotation.
Do I have to take the credit life insurance a lender offers?
A lender may require cover but must not demand unreasonable insurance, and if it proposes a particular policy you have the right to decline it and substitute your own that meets the regulations. Ask whether it is optional.
Can I pay a loan off early?
The NCR's consumer guide says you may settle a credit agreement at any time, and that no penalty fee applies to the early settlement of a small or intermediate agreement. Ask the lender for the settlement amount.
Does Mzansi Hub recommend one lender?
No. We list three lenders and give the facts they state about themselves. We earn a commission if you apply through a lender link, and the lender alone decides whether to grant credit.
How long can I take to decide after getting a quotation?
The NCR's guide says the quotation is valid for five business days. You are not required to decide on the spot, and a genuine lender will not mind you comparing.
Sources
- NCR consumer guide: All you need to know about the National Credit Act as a consumer (quotation, five business days, early settlement)
- NCR consumer rights leaflet (what the pre-agreement statement and quotation must disclose)
- NCR media release, April 2016: Affordability assessment regulations (credit cost multiple; credit insurance in total cost)
- NCR media release, January 2019: If you have to borrow, borrow wisely
- NCR: register of registered credit providers
- NCR: Guideline on the application of the Credit Life Insurance Regulations (003/2024)