Long-term loans in South Africa
Once a loan runs beyond six months it leaves the short-term credit category entirely — different rate caps, different pricing mechanics, a different application. Long-term credit costs less per rand borrowed and far more in total, and the decision to take one should be made on the total, not on the instalment.
Providers of longer-term credit
ordered by what each discloses · how we rank| Lender · NCR registration | Amount | Term | Interest | Basis | Details |
|---|---|---|---|---|---|
| DirectAxis NCRCP20 | R5 000 – R350 000 | 24–72 months | Annual, risk-based | ✓ Lender-confirmed | View details |
| Nedbank Not disclosed | R2 000 – R400 000 | 6–84 months | Annual, risk-based | Snapshot only | View details |
| African Bank Not disclosed | R2 000 – R350 000 | 7–72 months | Annual, risk-based | Snapshot only | View details |
| Sanlam Not disclosed | R5 000 – R350 000 | 12–84 months | Annual, risk-based | Snapshot only | View details |
- DirectAxis✓ Lender-confirmedNCRCP20
- Amount
- R5 000 – R350 000
- Term
- 24–72 months
- Interest
- Annual, risk-based
- Provider
- FirstRand Bank Limited
- NedbankSnapshot onlyNot disclosed
- Amount
- R2 000 – R400 000
- Term
- 6–84 months
- Interest
- Annual, risk-based
- Provider
- Nedbank Limited
- African BankSnapshot onlyNot disclosed
- Amount
- R2 000 – R350 000
- Term
- 7–72 months
- Interest
- Annual, risk-based
- Provider
- African Bank Limited
- SanlamSnapshot onlyNot disclosed
- Amount
- R5 000 – R350 000
- Term
- 12–84 months
- Interest
- Annual, risk-based
- Provider
- Sanlam group entity
Every figure is transcribed from the provider’s own published material. Where a provider does not disclose something, this table says so rather than estimating it. Last checked 10 August 2026. ZarCash may earn a commission when you apply through a partner — it never changes this order. Affiliate disclosure
What it costs — work it out
Set the amount and the term and see the instalment and the total repayable, with every fee the National Credit Act allows and VAT included. An estimate at the legal maximum — not a quote, and not an offer.
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.
| Principal — what you receive | R3 000 |
|---|---|
| Interest (5%/mo × 3 months) | R450 |
| Initiation fee | R365 |
| Service fee (3 × R60) | R180 |
| VAT on fees (15%) | R82 |
| Total cost of credit | R1 077 |
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.
Short-term versus long-term credit
| Detail | Short-term credit | Long-term credit |
|---|---|---|
| Amount | Up to R8 000 | Typically R2 000 upwards |
| Term | Up to 6 months | 6 months to 84 months |
| Interest cap | 5% a month (first loan), 3% (repeat) | A lower annual maximum set by the NCA |
| Interest basis | Charged on the original amount | Charged on a reducing balance |
| Service fee | R60 a month + VAT | A monthly service fee still applies |
| Credit life cover | Sometimes | Usually compulsory |
| Best for | A gap of weeks | A planned expense you will repay over years |
Rate maximums change by regulation. Confirm the cap that applies to your agreement on the pre-agreement quote, which must state it.
The line at six months is a legal one
Short-term credit under the National Credit Act means R8 000 or less repaid within six months, and that definition triggers the 5%-a-month interest cap and the capped initiation and service fees. Cross either boundary and the agreement becomes an unsecured credit agreement with a different, considerably lower, maximum rate — but with interest calculated on a reducing balance over a much longer period.
This is why comparing a payday loan and a long-term loan by their headline rates is meaningless. What you compare is the total cost of credit on each quote: the rand figure the lender is legally required to show you before you sign.
A low instalment is not a cheap loan
Stretching a loan out is the easiest way to make a monthly figure look affordable, and the most expensive thing you can do with the same borrowed amount. Before you accept a longer term, ask the lender for the total cost of credit at both terms and compare those two numbers directly.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
- National Credit Regulator — register of credit providers — Regulator, 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.