Payday Loan Cost Calculator

Short-term loans are quick, but a small fee each month adds up fast. This calculator applies the maximum charges the National Credit Regulations allow on short-term credit (up to R8,000 over up to 6 months), so you can see the worst-case cost before you apply.

How this calculator works

• Interest is capped at 5% a month on a first short-term loan.
• The initiation fee is R165 plus 10% of the amount above R1,000. It may not be more than 15% of the loan.
• A service fee of up to R60 is charged every month.

Worked example

Borrowing R3,000 for one month can cost up to R150 interest + R365 initiation + R60 service fee, so R3,575 to repay.

FAQs

Why is a payday loan so expensive for small amounts?

The initiation and service fees are fixed amounts, so they make up a large share of a small loan. That is why the effective annual cost of short-term credit is far higher than that of a personal loan.

Can a lender keep my bank card or SASSA card?

No. Holding a borrower's bank card, ID or SASSA card as security is illegal in South Africa. Report any lender who asks for it to the National Credit Regulator.