MoneyMatcher

Long-term loans in South Africa: 12 to 72 months

A long-term loan is a personal loan repaid over one to six years. Under the National Credit Act it is unsecured credit: interest is capped at the repo rate plus 21 percentage points a year, which is 28% at the current repo rate, with the same initiation fee cap as a short-term loan, a monthly service fee of up to R60 plus VAT, and credit life insurance of up to R4.50 per R1 000 owed each month. The amount is what you can afford rather than a fixed ceiling; the matching services we list cover R500 to R350 000 over 3 to 72 months.

The trade-off is simple and worth stating plainly: the longer the term, the lower the monthly instalment and the higher the total you repay. This page shows that maths at the legal maximum for R20 000 and R50 000, explains where banks and non-bank lenders sit against the cap, and describes what actually renders below. We have no bank partner and earn nothing on a bank loan, so the services listed are matching platforms that forward one application to a panel of personal-loan lenders. Get your own bank's quote first as the benchmark.

Matching services: one form, several lenders

These are not lenders. Each takes one application and passes it to a panel of registered credit providers, who then decide, quote and pay out. The agreement you sign is with the lender, and every lender still runs an affordability assessment.

  • Letocredit logo
    Matching service · not a lender

    A quick way to see several small-loan lenders at once; ignore the 'no credit check' line on its homepage.

    Amount
    R500 – R15 000
    Term
    2 months – 12 months
    Payout
    Same day for most partner lenders; often 15–30 minutes after confirmation
  • MoneyHello logo
    Matching service · not a lender

    The most transparent matching service on this list: names every partner lender and its NCRCP number.

    Term
    3 months – 72 months
    Payout
    Set by the lender you choose after matching
  • Binixo logo
    Matching service · not a lender

    A second front door to lenders already on this list; its own legal text contradicts itself.

    Amount
    R1 000 – R50 000
    Term
    3 months – 6 months
    Payout
    Set by the lender you choose; the site says same day
  • Finpug logo
    Matching service · not a lender

    Letocredit's sister site with a wider amount slider; it openly encourages applying to several lenders at once.

    Amount
    R500 – R50 000
    Term
    2 months – 12 months
    Payout
    Usually within 30 minutes of a partner lender's approval in business hours
  • Creditomax logo
    Matching service · not a lender

    A matching service that publishes less about itself than any other entry here — apply through it only if you already know the lender.

  • Crezu logo
    Matching service · not a lender

    Names its operator, publishes its terms and an example, and covers everything from R500 to a consolidation loan.

    Amount
    R500 – R350 000
    Term
    6 months – 72 months
    Payout
    Offers in about 2 minutes; the site says funds within 15 minutes of a lender's approval
  • Creditum logo
    Matching service · not a lender

    Arcadia's twin from a Finnish publisher, on the same Myloan panel, with the same clear example.

    Amount
    R500 – R350 000
    Term
    6 months – 72 months
    Payout
    Non-binding offers in seconds; payout set by the lender you choose
  • Arcadia Finance logo
    Matching service · not a lender

    The longest-running matching service here, with a real review record and the widest term range.

    Amount
    R100 – R350 000
    Term
    3 months – 72 months
    Payout
    Offers immediately after the form; payout set by the lender you choose
  • Dengoo logo
    Matching service · not a lender

    Names no company behind it and promises 'no checks required' — treat it as a form that reaches LendPlus, Lime24 and the Myloan panel.

    Amount
    up to R350 000
    Term
    up to 12 months
    Payout
    Site says up to 15 minutes after the partner lender's approval

Borrowing money costs money — only borrow what you can afford to repay. Lenders listed here publish a National Credit Regulator registration; matching services are not lenders and are labelled as such. The order of our lists reflects our partner agreements; the star ratings are our own. Costs shown as "legal maximum" are the caps set by the National Credit Act, not a lender's price.

What the term does to the cost

At the legal maximum of 28% a year, R20 000 over 12 months is about R2 100 a month and R25 200 in total; over 24 months about R1 220 a month and R29 200; over 36 months about R930 a month and R33 500. The instalment more than halves; the cost of credit rises from about R5 200 to about R13 500. On R50 000 over 60 months the instalment is about R1 650 and the total about R98 800, nearly double the loan. Those figures include the initiation fee and monthly service fees at their caps and exclude credit life.

The right term is the shortest one whose instalment you can carry after every existing debit order. A lender's affordability assessment does the same sum, but its threshold is survival, not comfort.

Banks, non-bank lenders and the cap

Banks price personal loans against prime, currently 10.5%, plus a margin set by your profile, and a strong profile pays well under the cap. Non-bank instalment lenders price close to the cap regardless of where the repo rate sits. A quote from the bank your salary goes into is the benchmark: it already has your transaction history, and if it declines you, that tells you how a non-bank lender is likely to price you. Our repo rate guide explains how the cap moves when the Reserve Bank changes rates.

Credit life and other add-ons

On unsecured credit the lender may require credit life insurance, capped at R4.50 per R1 000 of the outstanding balance a month. On R50 000 that starts at about R225 a month and falls as you repay. You are entitled to substitute your own policy of equal cover. Watch for retrenchment or funeral cover bundled in above the cap; it is optional, and the quotation must show it separately.

Settling early and consolidating

You can settle any credit agreement early. On a loan of R250 000 or less the lender may not charge an early-settlement penalty; you pay the balance plus interest to the settlement date. That makes a long term less dangerous than it looks if your income rises: take the term you need for the instalment, then overpay. If the purpose is to pay off several existing loans, compare against a consolidation loan; the cap is the same, but the point is one instalment and one initiation fee instead of several.

Questions people ask

What is the maximum interest rate on a long-term loan?

The repo rate plus 21 percentage points a year, which is 28% while the repo rate is 7%. Banks charge well under that for good profiles; non-bank lenders usually sit near it.

How long can a personal loan be?

Most lenders offer 12 to 72 months; some go to 84. The matching services listed here cover 3 to 72 months. The Act sets no maximum term for unsecured credit.

Is a longer term ever cheaper?

Never in total, only per month. It is the better choice only when the shorter term's instalment would not fit after your existing commitments.

Can I pay a long-term loan off early?

Yes. On loans of R250 000 or less no early-settlement penalty applies; you pay the balance plus interest to the settlement date.

Borrowing money costs money — only borrow what you can afford to repay. Lenders listed here publish a National Credit Regulator registration; matching services are not lenders and are labelled as such. The order of our lists reflects our partner agreements; the star ratings are our own. Costs shown as "legal maximum" are the caps set by the National Credit Act, not a lender's price.