Early settlement calculator
You may settle a South African credit agreement at any time, and on short-term credit you owe interest only up to the settlement date. This estimates what stopping early saves — the interest you no longer accrue and the service fees you no longer pay. The lender’s written settlement quote is the binding figure.
Rates and fees use the NCA caps for short-term credit agreements: interest 5%/month (3% repeat), initiation fee R165 + 10% of the amount over R1 000 (max R1 050), service fee R60/month, VAT 15% on fees.
Interest and service fees stop at settlement; the initiation fee of R365 is not refunded. This is an estimate — ask the lender for a written settlement quote valid to a specific date before paying.
What early settlement does and does not refund
Interest stops. On short-term credit, interest accrues month by month, so settling in month two of a four-month agreement means you never accrue months three and four.
Service fees stop with it, for the same reason — R60 plus VAT for each month the agreement no longer runs.
The initiation fee does not come back. It was charged once at the start for setting the agreement up, and it is not refunded proportionally. That is why settling a one-month loan early saves very little, while settling a six-month loan in month two can save a great deal.
Always ask for a written settlement quote
The exact figure depends on the day the payment reflects, and a payment that falls short by a few rand leaves the agreement open and still accruing. Ask the lender for a settlement quote valid to a specific date, pay that amount, and get written confirmation that the account is closed.
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.