Unsecured loans in South Africa
An unsecured loan is credit granted against your income and repayment record alone — no house, car or policy is pledged as security. Almost all short-term credit and most personal loans in South Africa are unsecured. It means nothing of yours can be repossessed for this debt, and it also means the lender prices in a risk it cannot recover from an asset.
Unsecured credit providers
ordered by what each discloses · how we rank| Lender · NCR registration | Amount | Term | Interest | Basis | Details |
|---|---|---|---|---|---|
| Boodle NCRCP5361 | R500 – R8 000 | 1–6 months | Up to 5%/mo capped | ✓ Lender-confirmed | View details |
| Atlas Finance NCRCP3994 | R500 – R20 000 | 1–9 months | Up to 5%/mo capped | ✓ Lender-confirmed | View details |
| Letsatsi Finance NCRCP895 | R500 – R7 000 | 1–6 months | Up to 5%/mo capped | ✓ Lender-confirmed | View details |
| DirectAxis NCRCP20 | R5 000 – R350 000 | 24–72 months | Annual, risk-based | ✓ Lender-confirmed | View details |
| Wonga NCRCP12875 | Not disclosed | Not disclosed | Up to 5%/mo capped | ✓ Lender-confirmed | View details |
| Lime24 NCRCP8077 | Not disclosed | Not disclosed | Up to 5%/mo capped | ✓ Lender-confirmed | View details |
| FinChoice NCRCP8162 / NCRCP23514 | Not disclosed | Not disclosed | Up to 5%/mo capped | ✓ Lender-confirmed | View details |
| Barko NCRCP1764 | Not disclosed | Not disclosed | Up to 5%/mo capped | ✓ Lender-confirmed | View details |
| African Bank Not disclosed | R2 000 – R350 000 | 7–72 months | Annual, risk-based | Snapshot only | View details |
| Nedbank Not disclosed | R2 000 – R400 000 | 6–84 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 |
- Boodle✓ Lender-confirmedNCRCP5361
- Amount
- R500 – R8 000
- Term
- 1–6 months
- Interest
- Up to 5%/mo capped
- Provider
- Boodle (Pty) Ltd
- Atlas Finance✓ Lender-confirmedNCRCP3994
- Amount
- R500 – R20 000
- Term
- 1–9 months
- Interest
- Up to 5%/mo capped
- Provider
- Atlas Finance
- Letsatsi Finance✓ Lender-confirmedNCRCP895
- Amount
- R500 – R7 000
- Term
- 1–6 months
- Interest
- Up to 5%/mo capped
- Provider
- Letsatsi Finance and Loan (Pty) Ltd
- DirectAxis✓ Lender-confirmedNCRCP20
- Amount
- R5 000 – R350 000
- Term
- 24–72 months
- Interest
- Annual, risk-based
- Provider
- FirstRand Bank Limited
- Wonga✓ Lender-confirmedNCRCP12875
- Amount
- Not disclosed
- Term
- Not disclosed
- Interest
- Up to 5%/mo capped
- Provider
- Wonga Online (Pty) Ltd
- Lime24✓ Lender-confirmedNCRCP8077
- Amount
- Not disclosed
- Term
- Not disclosed
- Interest
- Up to 5%/mo capped
- Provider
- Lime Loans South Africa (Pty) Ltd
- FinChoice✓ Lender-confirmedNCRCP8162 / NCRCP23514
- Amount
- Not disclosed
- Term
- Not disclosed
- Interest
- Up to 5%/mo capped
- Provider
- FinChoice Africa Ltd / FinChoice Finance (Pty) Ltd
- Barko✓ Lender-confirmedNCRCP1764
- Amount
- Not disclosed
- Term
- Not disclosed
- Interest
- Up to 5%/mo capped
- Provider
- Barko Financial Services (Pty) Ltd
- African BankSnapshot onlyNot disclosed
- Amount
- R2 000 – R350 000
- Term
- 7–72 months
- Interest
- Annual, risk-based
- Provider
- African Bank Limited
- NedbankSnapshot onlyNot disclosed
- Amount
- R2 000 – R400 000
- Term
- 6–84 months
- Interest
- Annual, risk-based
- Provider
- Nedbank 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.
Secured versus unsecured credit
| Detail | Unsecured | Secured |
|---|---|---|
| What backs it | Your income and credit record | An asset — property, a vehicle, a policy |
| Typical products | Short-term loans, personal loans, credit cards | Home loans, vehicle finance, pledged-policy loans |
| Cost | Higher — the lender carries the full risk | Lower — the asset reduces the lender’s loss |
| If you default | Bureau listing, collections, possible court judgment | The same, plus repossession or sale of the asset |
| Approval turns on | Affordability and repayment history | The asset’s value as well as affordability |
What R5 000 over 4 months actually costs
At the NCA maximum for a first short-term loan (5% a month). An illustration, not a quote.
| Line | Amount |
|---|---|
| Amount borrowed | R5 000 |
| Interest (5% × 4 months) | R1 000 |
| Initiation fee | R565 |
| Service fee (R60 × 4) | R240 |
| VAT on fees (15%) | R121 |
| Total you repay | R6 926 |
| Monthly instalment | R1 731 |
Cost of credit: R1 926 on R5 000 borrowed. Figures are calculated at the statutory maximum — your own quote may be cheaper, and must be shown to you in full before you sign.
What the lender takes instead of security
Because there is no asset to fall back on, an unsecured lender relies entirely on evidence that you will pay: verified income, an affordability calculation, and your record at the credit bureaux. That is why the documents matter so much more than they would on a vehicle or home loan, where the asset itself carries part of the risk.
It is also why unsecured credit is more expensive. A home loan is priced in single-digit percentages a year because the lender holds the property; unsecured short-term credit is capped at 5% a month precisely because it is not.
Unsecured does not mean consequence-free. Default is reported to the bureaux, affects every future application, and can be pursued through court — including an emoluments attachment order against your salary. The absence of collateral limits what can be seized; it does not remove the debt.
There is no legal “no credit check” loan in South Africa
The National Credit Act requires every registered credit provider to run an affordability assessment and check your credit record before granting credit. A lender advertising guaranteed approval or no checks at all is either not registered or not telling you the truth. What does vary is how much weight a lender puts on your credit score — some short-term lenders look harder at your recent bank statements than at your bureau record.
Unsecured loan questions
Easier to apply for, not necessarily easier to be approved for. There is no asset to value and no bond to register, so the process is much faster. But with nothing to fall back on, the lender leans harder on your affordability assessment and credit record — so a thin or damaged record weighs more here than it would on a secured application.
There is no official blacklist, but a default is reported to the credit bureaux and stays on your record for a set period. That listing is what people mean by blacklisted, and it affects unsecured applications most of all — precisely because your record is the main thing an unsecured lender has to go on.
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.
- NCR Credit Bureau Monitor, Q2 2025 — Regulator report, as at 30 June 2025.
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.