R 500
R 125000
R 250000
REPRESENTATIVE EXAMPLE: ESTIMATED REPAYMENTS OF A LOAN OF R30,000 OVER 36 MONTHS AT A MAXIMUM INTEREST RATE INCLUDING FEES OF 27,5% APR WOULD BE R1,232.82 PER MONTH. REPAYMENT TERMS CAN RANGE FROM 2 - 72 MONTHS. CREDITUM IS AN ONLINE LOAN COMPARISON TOOL AND NOT A LENDER. INTEREST RATES CHARGED BY THE LENDERS FOUND IN OUR SERVICE CAN START AS LOW AS 20% APR, INCLUDING AN INITIATION AND SERVICE FEE DETERMINED BY THE LENDER. THE INTEREST RATE OFFERED DEPENDS ON THE APPLICANTS' CREDIT SCORE AND OTHER FACTORS AT THE LENDER'S DISCRETION.

Long-Term Loans

In order to find the best loan for your needs, it is important to compare loans online.

  • Apply in minutes
  • Get offers from multiple lenders
  • Choose the best loan option available

Note: If you are not satisfied with the loan offers, you don’t have to select any of them.

Applying for a loan online – How it works

About 5 minutes

1. Select loan amount

In the calculator, select the loan amount you need.

The minimum amount is R 500 and the maximum amount is R 250 000.

 

2. Fill out contact details

Fill out your email address and your cellphone number.

Keep in mind that you will receive the loan offers through these channels.

 

3. Fill in additional details

The applications are often processed automatically. To achieve this, banks and lenders need some additional details, like your employment status and monthly income.

 

4. Select the best loan offer

Compare the offers & select the best one! If you are not satisfied with the offers, you don't have to do anything. The application expires automatically.

 

Long-Term Loans in South Africa

Are you looking to finance a major purchase or project? Perhaps you need to renovate your home, buy a new car, or start a business. A long-term loan may be the perfect solution to help you achieve your goals. But with so many lenders and loan options available in South Africa, it can be overwhelming to choose the right one. In this article, we’ll guide you through the process of finding the lowest loan rates and applying for a long-term loan online.

Understanding the different types of long-term loans

Before applying for a long-term loan, it’s important to understand the various types available. The most common types of long-term loans include:

Personal loans

Personal loans are unsecured loans that can be used for any purpose. Lenders typically offer personal loans in amounts ranging from R1000 to R250 000. The repayment period can vary from 12 to 84 months, depending on the lender and the amount borrowed.

Home loans

Home loans are secured loans used to purchase or refinance a home. Lenders will typically require a deposit of at least 10% of the purchase price, and the repayment period can range from 20 to 30 years.

Car loans

Car loans are secured loans used to purchase a vehicle. Lenders will typically offer car loans in amounts ranging from R20 000 to R250 000, with a repayment period of 12 to 60 months.

Benefits of long-term loans

There are several benefits to taking out a long-term loan, including:

Lower monthly payments

Long-term loans typically have lower monthly payments than short-term loans, making them more affordable for borrowers.

Fixed interest rates

Most long-term loans have fixed interest rates, which means that the interest rate remains the same throughout the loan term. This can provide borrowers with peace of mind, as they know exactly how much they will be paying each month.

Flexible repayment terms

Long-term loans offer flexible repayment terms, allowing borrowers to choose a repayment period that suits their budget and financial goals.

Factors to consider before applying for a long-term loan

Before applying for a long-term loan, there are several factors to consider:

Your credit score

Your credit score will play a significant role in determining whether you are approved for a long-term loan and the interest rate you will be offered. It’s important to check your credit score before applying for a loan and take steps to improve it if necessary.

Your income and expenses

Lenders will want to ensure that you have sufficient income to repay the loan. It’s important to calculate your monthly income and expenses to determine how much you can afford to borrow.

The loan term

Consider the loan term carefully and choose a repayment period that suits your financial goals and budget.

How to find the lowest loan rates in South Africa

Finding the lowest loan rates in South Africa can be time-consuming and overwhelming. Here are some tips to help you find the best loan rates:

Research online

Use the internet to research different lenders and loan options. Compare interest rates, fees, and repayment terms to find the best loan for your needs.

Use a loan comparison website

Loan comparison websites can help you compare loan rates from different lenders. Simply enter your loan amount and repayment term, and the website will provide you with a list of lenders and their interest rates.

Consult with a financial advisor

A financial advisor can provide you with expert advice on choosing the best loan for your needs. They can also help you negotiate with lenders to secure the best loan rates.

Step-by-step guide to applying for a long-term loan online

Applying for a long-term loan online is quick and easy. Here’s a step-by-step guide to help you through the process:

Step 1: Research lenders

Research lenders online and compare their loan rates, fees, and repayment terms.

Step 2: Choose a lender

Once you’ve found a lender that offers the best loan rates, fill out their online application form.

Step 3: Submit your application

Submit your application online, along with any required documentation.

Step 4: Wait for approval

Wait for the lender to approve your application. This can take anywhere from a few hours to a few days.

Step 5: Sign the loan agreement

If your application is approved, the lender will send you a loan agreement to sign.

Step 6: Receive your funds

Once you’ve signed the loan agreement, the funds will be deposited into your bank account.

Requirements for applying for a long-term loan

The requirements for applying for a long-term loan vary depending on the lender. However, most lenders will require the following:

Proof of income

You will need to provide proof of your income, such as payslips or bank statements.

Identification documents

You will need to provide identification documents, such as a passport or ID card.

Bank statements

You may be required to provide bank statements to show your financial history and ability to repay the loan.

Long-term loan repayment options

Long-term loans offer flexible repayment options, allowing borrowers to choose a repayment period that suits their budget and financial goals. Some common repayment options include:

Fixed monthly payments

Fixed monthly payments are the most common repayment option for long-term loans. The borrower makes the same payment each month until the loan is paid off.

Variable monthly payments

Variable monthly payments allow borrowers to make larger payments when they have extra funds, reducing the overall interest paid on the loan.

Balloon payments

Balloon payments are a lump sum payment made at the end of the loan term. This payment is larger than the regular monthly payments and can be used to pay off the remaining balance of the loan.

Common mistakes to avoid when applying for a long-term loan

When applying for a long-term loan, it’s important to avoid these common mistakes:

Applying for too much

Only apply for the amount you need. Applying for too much can result in higher interest rates and fees.

Not reading the fine print

Read the loan agreement carefully before signing. Make sure you understand the interest rate, fees, and repayment terms.

Not shopping around

Don’t settle for the first loan offer you receive. Shop around and compare loan rates from different lenders.

Conclusion and final tips for getting the best long-term loan deal

A long-term loan can help you finance your dreams and achieve your goals. When applying for a long-term loan, it’s important to research lenders, compare loan rates, and choose a repayment term that suits your budget and financial goals. Avoid common mistakes, such as applying for too much or not reading the loan agreement carefully. With these tips, you can find the best long-term loan deal in South Africa and get the funding you need to make your dreams a reality.

You might also be interested in:

Lime
Loan amounts
R300
R5400
Payback period
5 days to 7 weeks
Interest rate
Daily interest rate of 0.1% to 0.16% depending on Tariff Group
Other fees
R69/month + opening cost 16,5% of first R1000 lent + 10% of loan amount over R1000 (+VAT). Limited to lesser of 15% of loan amount (+VAT).
Representative example: If you want to borrow R2000 for 30 days, you have to pay back R2428.78. The total cost includes interest, VAT, and a monthly service fee.
MyLoan
Loan amounts
R100
R250000
Payback period
7 days to 36 months
Interest rate
MyLoan is an online loan broker and not a lender. Interest rates of the loans in the comparison panel can start as low as 20% APR.
Other fees
MyLoan is an online loan broker and not a lender. Other fees depend on the brokered loan.
Representative example: a R50 000 loan at an interest rate of 24.5% per annum plus a once-off initiation fee of R1 207.50 (added to the loan amount in this example) and a monthly admin fee of R69.00, over 72 months would have a total cost of R 103 155.57. The maximum annual interest rate including fees is 27.5%. Repayment terms can range from 1 - 72 months. MyLoan is an online loan broker and not a lender. T service is free and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants’ credit score and other factors at the lenders’ discretion.
Boodle
Loan amounts
R500
R8000
Payback period
16 days to 6 months
Interest rate
Daily interest rate of 0.17%
Other fees
Service fee R60 per month + Initiation fee R165 on the loan above R1000 + Insurance premium R4.50 per R1000 per month on the daily balance
Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.
Fasta
Loan amounts
R800
R8000
Payback period
1 month to 3 months
Interest rate
Monthly interest rate 3%
Other fees
Initiation fee R994 + Service fee R69 + Credit protection fee R48.76
Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.
MPowa
Loan amounts
R500
R8000
Payback period
16 days to 6 months
Interest rate
Interest of 5% per month, 3% on additional loans during the same calendar year
Other fees
Initiation fee of 16.5% of the capital amount on the 1st R1000 then 10% on each amount over R1000 plus VAT. A service fee of R60 per month plus VAT.
Representative example: The payback time and total costs differ depending on the amounts. Final costs and fees are shown on the next page before agreeing to the loan.