Minimum and maximum loan periods vary between 1 months and 10 years. Comparison interest rates vary between 6.55% and 60% p.a. Total interest repayments vary between R685.05 and R844.12 over the life of the loan. *Comparison rate is based on an unsecured loan of R20,000 for a term of 3 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. These rates can change without further notice. All rates quoted are per annum. For more information regarding fees click on "View fees & additional info +" for each product or contact the provider.
Get a R120 000 loan in South Africa
Taking out a R120 000 personal loan is borrowing on a big scale. It also allows you to invest in big-scale projects like a Time-share, wedding, or business.
However, personal loans have various features, and you need to find the best option for you.
Where to get a R120 000 loan in South Africa
If you’re searching for South African lenders who offer R120 000 personal loans, an excellent place to start is our comparison tables above. You’ll find a helpful list of reputable lenders and their details.
For extra details, click the “View fees and additional info link.” Generally, loan terms for large loan sizes range from 12 months to 84 months (7 years) and the lump sum can be used for many purposes such as:
5 questions to ask when comparing loans within this range
- Should I choose a secured or unsecured loan? – A secured loan can get you a low interest rate, but if you fail to repay, there’s also the risk of losing your house, car or any asset used to secure the loan. Unsecured loans don’t need collateral, but they have higher rates.
- How much should I pay every month? – This depends on your loan term and how much you plan to borrow. Before you apply, find a comfortable and affordable monthly payment using our personal loan calculator above. Simply adjust the sliding tools to enter the correct loan amount and term. Click calculate and check for the results in our comparison tables. While using the calculator, remember that a shorter loan term can help you save money since you pay less interest.
- Do I want a fixed rate or a variable rate? – A fixed interest rate loan has the advantage of monthly payments that never change which makes it easier to budget. On the other hand, a variable or linked rate loan has the potential for reduced monthly payments if the rate goes down.
- What is the APR for my loan? – This is the fastest way of calculating how much the loan will cost you (the lower, the better). It’s also important to compare interest rates, but the Annual Percentage Rate (APR) is a better comparison rate because it includes the interest rate and all loan fees and charges.
- What other advantages does this lender offer? – This includes things like low monthly service and initiation fees, excellent customer service, and personal loans with online applications you can submit in the comfort of your home. Additionally, find out if the lender allows early or additional payments with no penalty fees.
What are the repayments on a R120,000 loan?
Factors impacting the cost of your loan include; your credit score, the loan term and fees. An excellent or high credit score will reduce your interest rate, whilst a low credit score will increase your interest repayments. This will have a significant impact on costs over the life of the loan.
Example of typical costs when you borrow R120,000 over 5 years or 60 months:
- Initiation fee: up to R1207.50
- Monthly admin fee: R69
- Interest rate: Between 14% and 27.50%
- Monthly repayments: R2,889 and R3,806
- The total cost on a R120,000 loan: Between R173,357 and R228,385
What are the requirements when applying for this loan amount?
South African lenders have several requirements for their personal loan products. But, for R120 000, the requirements can be stricter than usual. That means you should pay a bit more attention to what personal loan lenders like to see in their borrowers which includes:
- Good credit score. According to TransUnion, a favourable credit score is typically between 583 – 999. Personal loans for excellent credit (above 767) are more likely to offer the lowest interest rates.
- Low debt-to-income ratio. Lenders look at what your monthly debt is compared to your monthly income. If your monthly payments are already high (because you have taken out other loans), you might not be able to afford a bigger loan.
- High income level. Lenders usually want your income to be above a certain amount to make sure you can afford the monthly payments. That’s why you might be asked to submit copies of your bank statements and payslips for the last 3 months.
How to improve your chances of getting approved
Bad credit personal loans that are above R100 000 can be hard to find since lenders prefer excellent credit borrowers for a loan that size. Even if you’re looking for an average credit loan or a good credit loan, there are several options that increase your chances of qualifying for this loan amount:
- Improve your credit score. This usually involves checking your credit report and fixing errors as well as paying off some of your debts.
- Choose a secured loan. You have a better chance at loan approval if there’s less risk for the lender. When you default, they can recover the loss by seizing your asset, which can be a house, stocks, or a car.
- Make a joint application. A joint application personal loan requires you to add a co-signer who typically has a better credit score or a high income. If you fail to repay, the co-signer becomes responsible for your monthly payments.
- Provide enough financial details. You can strengthen your application by including all financial documents with details of your income and assets. This helps to convince the lender that you’ll be able to repay the loan.
R120 000: How to apply for this loan amount online
If you check our comparison tables, our “Go to Site” buttons provide a fast and easy gateway to your desired lender. Once you’re directed to the lender’s website, fill in the application form and submit the required paperwork. If the lender approves your personal loan application, they will contact you so you can sign the loan agreement. Receiving the money in your bank account can take anywhere from 24 hours to 1 week, depending on the lender.
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