Short-term loan cost calculator
The legal maximum for a short-term loan, split into the parts that matter.
What R2 000 is legally allowed to cost
Legal maximum · NCA caps- Loan
- R2 000
- Interest (5%/mo)
- R100.00
- Fees incl. VAT
- R373.75
- Total to repay
- R2 473.75
Fees: initiation R304.75 (R165 + 10% above R1 000, capped at R1 050, plus VAT) and service fees R69.00 (R60 plus VAT per month). Interest is the small part of a short loan; fees are the part to compare.
Caps per NCA regulations effective 6 May 2016; repo rate 7.00% since 28 May 2026. Last checked 25 August 2026.
By term, for one amount
| Term | Cap | Monthly instalment | Interest | Fees incl. VAT | Total repayable |
|---|---|---|---|---|---|
| 1 month | 5% / month | R2 473.75 | R100.00 | R373.75 | R2 473.75 |
| 2 months | 5% / month | R1 296.98 | R151.22 | R442.75 | R2 593.97 |
| 3 months | 5% / month | R905.00 | R203.25 | R511.75 | R2 715.00 |
| 4 months | 5% / month | R709.21 | R256.09 | R580.75 | R2 836.84 |
| 6 months | 5% / month | R513.83 | R364.21 | R718.75 | R3 082.96 |
Reading the result
Three numbers make up a short-term loan: interest (capped per month), the initiation fee (once per loan) and the service fee (monthly). VAT applies to the fees. The strip shows all three for the amount and repayment you choose; the table shows the same amount over one to six months so you can see what the term does to the total.
If the lender's quotation is close to this figure, it is pricing at the cap. If it is well below, it is competing on price. Either way, the number to compare is the total repayable, not the interest rate.
Questions people ask
›Is this what a lender will charge me?
No. It is the most a registered lender is allowed to charge under the National Credit Act. Lenders may charge less; compare their pre-agreement quotation against this figure.
›Why does a 30-day loan show such high fees?
The initiation fee is charged once regardless of term, so on a short loan it dominates the cost. Interest is the small part.
›What is the 3% rate?
Short-term interest is capped at 5% per month on your first short-term loan in a calendar year and 3% per month on any further short-term loans that year.
›Does this include credit life insurance?
The strip excludes it; the table includes a separate column where relevant. Credit life is capped at R4.50 per R1 000 owed per month and lenders may require it.