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.

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.

 

Term Loans in South Africa

Are you in need of a term loan in South Africa but overwhelmed by the daunting task of finding the best rates? Look no further! As a highly skilled assistant specializing in digital marketing and content writing, I have done the research for you. In this article, you will find everything you need to know about term loans in South Africa, including how to find the lowest loan rates and apply online. Whether you need funds for personal or business purposes, we’ve got you covered. With our expertise in creating compelling content that is both SEO and conversation optimized, you can be confident that the information provided is reliable, accurate, and easy to understand. So, sit back, relax, and let us guide you through the process of finding the right term loan for you.

Benefits of Term Loans

A term loan is a type of loan that is paid back over a set period of time. It is a popular financing option for both personal and business purposes. There are several benefits to choosing a term loan over other types of loans.

Lower Interest Rates

One of the main benefits of a term loan is that it generally has a lower interest rate compared to other types of loans, such as credit cards or personal loans. This is because lenders are more likely to approve a loan that has a set repayment period and a fixed interest rate.

Predictable Repayment Schedule

Another benefit of a term loan is that it has a predictable repayment schedule. This means that you know exactly how much you need to pay each month, making it easier to budget and plan your finances.

Longer Repayment Periods

Term loans also offer longer repayment periods compared to other types of loans. This means that you have more time to pay back the loan, which can help to reduce your monthly payments and make it more affordable.

How Term Loans Work

Before applying for a term loan, it is important to understand how they work. A term loan is a loan that is paid back over a set period of time, usually between one and ten years. The loan amount, interest rate, and repayment period are all agreed upon before the loan is disbursed.

Principal Amount

The principal amount is the amount of money that you borrow from the lender. This amount can range from a few thousand to several million South African Rand, depending on the lender and your creditworthiness.

Interest Rate

The interest rate is the percentage of the principal amount that you will pay back to the lender as interest. This rate is determined by the lender and is based on several factors, including your credit score, income, and the purpose of the loan.

Repayment Period

The repayment period is the amount of time that you have to pay back the loan. This period can range from one to ten years, depending on the lender and the amount of money that you borrow.

Different Types of Term Loans and Their Features

There are several types of term loans available in South Africa. Each type of loan has its own features and benefits, so it is important to choose the one that best suits your needs.

Secured Term Loans

Secured term loans are loans that are secured by collateral, such as a vehicle or property. Because the loan is secured, the interest rate is generally lower than unsecured loans. However, if you fail to repay the loan, the lender can repossess the collateral.

Unsecured Term Loans

Unsecured term loans are loans that are not secured by collateral. Because there is no collateral, the interest rates are generally higher than secured loans. However, you do not risk losing any property if you fail to repay the loan.

Personal Term Loans

Personal term loans are loans that are taken out for personal reasons, such as home improvements, education, or debt consolidation. These loans are generally unsecured and have higher interest rates than secured loans.

Business Term Loans

Business term loans are loans that are taken out for business purposes, such as purchasing equipment or expanding a business. These loans can be either secured or unsecured, depending on the lender and the creditworthiness of the borrower.

Factors to Consider When Applying for a Term Loan

Before applying for a term loan, it is important to consider several factors to ensure that you choose the right loan for your needs.

Interest Rates

Interest rates are one of the most important factors to consider when applying for a term loan. It is important to compare interest rates from different lenders to ensure that you get the best rate possible.

Fees and Charges

In addition to interest rates, it is also important to consider any fees and charges associated with the loan. These can include application fees, origination fees, and prepayment penalties.

Repayment Period

The repayment period is also an important factor to consider. It is important to choose a repayment period that is affordable and fits within your budget.

Credit Score

Your credit score is an important factor that lenders consider when approving a loan. It is important to check your credit score before applying for a loan to ensure that you are eligible for the loan and to get the best interest rate possible.

You might also be interested in:

Personal LoansInstant Temporary LoanDebt Consolidation LoansVehicle LoansUrgent Cash LoansTarget LoanLoans for low-income earnersBusiness LoansEstate Purchase LoanCar LoansLoans for Young PeopleSoft LoansAffordable LoansPersonal Line of CreditPension bridging loansTop-up loans
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).
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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.
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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
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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
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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.
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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.