Guides

Money, in plain language.

Short reads on borrowing well, from any lender, not just us. No jargon, no lectures, and no pretending money stress is a character flaw. Everyone needs a slice sometimes; these are for making sure the slice never eats you.

How to read a loan quote

Before you sign any loan in South Africa, the lender must hand you a pre-agreement statement and quote. It is not paperwork to skim, it is the whole deal in one place. Four numbers matter.

First, the amount you receive. Second, the total of all charges: interest, the initiation fee, the monthly service fee, and any credit insurance. Third, the total you will repay, which is the first two added together. Fourth, the dates and the amount of each payment. If any of the four is missing, blank, or "to be confirmed", do not sign.

The trick to watch for is a quote that looks cheap because a fee lives somewhere else: a "card fee", an "admin fee" collected in cash, a charge that only appears on the first statement. The law says the quote holds everything. A charge that is not on the quote is a charge you can refuse.

Your rights when you borrow

The National Credit Act gives every borrower the same rights, whoever the lender is. You have the right to a quote in writing before you sign, in language you understand. You have the right to settle early, any day you choose, and pay interest only up to that day. You have the right to a statement of your account. And no lender may keep your bank card, your ID book, or your SASSA card as security. Handing them over is never a condition of a legal loan.

Interest and fees have legal maximums, and a lender charging above them cannot enforce the excess. Collection has rules too: no threats, no shaming you at work, no taking goods without a court order.

If a lender breaks these rules, complain to the National Credit Regulator on 0860 627 627 or the Credit Ombud on 0861 662 837. Both are free.

What the affordability check actually looks at

When a lender asks about your income and expenses, it can feel like being judged. It is the opposite: the affordability assessment is the part of the law that exists purely to protect you, and any lender who skips it is breaking the law in a way that always ends up costing the borrower.

The check is simple arithmetic. What comes in each month, what must go out for you to live: rent, transport, food, school, other debts. What remains is what a repayment can safely come out of. A lender who looks at that honestly will sometimes offer you less than you asked for. That is the system working, not failing. The loan that fits gets repaid, your record stays clean, and your ceiling grows for next time.

Reckless lending, giving credit the check says you cannot afford, is illegal. A court can suspend or wipe such a debt entirely.

Staying safe with any lender

Legal or not, a lender is safe when you can answer three questions. Who are they: a registered credit provider has an NCR number you can check for free on the register at ncr.org.za. What is the whole price: one written total, on a quote, before you sign. What happens if a month goes wrong: the answer should be a plan you can repeat back, not a warning.

Walk away from anyone who wants your bank card or PIN, your ID book, or a cash "release fee" before you get the money. Walk away from interest that grows on interest, because a compounding debt at informal rates can pass double the loan within two months; our compounding tool on the Tools page shows exactly how fast. And keep every receipt, even with a lender you trust. Paper is the borrower's best friend.

None of this is about legal versus informal. It is about the difference between borrowing from someone and being owned by someone. You deserve the first, every time.