Compare two loans
Set two amounts and terms side by side and see both figures for each: the monthly instalment and the total cost of credit. This is the comparison that settles most borrowing decisions, and it is the one lenders’ advertising is least likely to put in front of you.
Loan A
Costs less in total- Instalment
- R2 202
- Cost of credit
- R1 607
- Total repayable
- R6 607
Loan B
- Instalment
- R1 261
- Cost of credit
- R2 564
- Total repayable
- R7 564
The difference: R957. Same amount, different term — every extra month adds interest on the full original amount plus another service fee and VAT. The instalment tells you whether a loan fits your month; the total tells you what it costs.
The three comparisons worth running here
The same amount over a shorter versus a longer term. The longer term always has the smaller instalment and the larger total — seeing both numbers together is what makes the trade-off concrete.
One larger loan against two smaller ones. Two agreements carry two initiation fees, which is usually enough to make splitting a borrowing need more expensive than meeting it once.
A first loan against a repeat loan. The 5% and 3% monthly caps produce a visible gap on the same amount and term — a concrete measure of what repaying the previous loan on time was worth.
Compare totals, not instalments
A lower instalment on a longer term is the most common way a more expensive loan is presented as a better one. If you take only one figure from this tool, take the total cost of credit.
Check these three things before you sign — here or anywhere
- The lender’s NCRCP number is published on its own site, and it checks out in the National Credit Regulator’s register.
- The pre-agreement quote breaks out the total cost of credit: interest, initiation fee, service fee and VAT — as one figure you can compare.
- Nobody asks you for an upfront “release fee”. A registered credit provider never charges you before it pays out.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.