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.
How to apply and get approved for a R85 000 loan
Find out how to access a R85 000 loan and what you can do to get the most beneficial option for your situation.
Where can you get a R85 000 loan in South Africa?
Looking for the perfect loan can take up much of your time, and sometimes making a final decision is a little tricky. However, if you take a quick look at our comparison tables, you’ll see that we have done most of the work for you.
We have a list of popular South African lenders that you can easily compare using the information provided. If you want more details, just click, “View fees and additional info.”
R85 000: Secured personal loans vs. unsecured personal loans
If you choose a R85 000 personal loan, it can be secured or unsecured:
- A secured loan involves using your assets (it could be your house, car, or something valuable) to secure the loan. That means if the lender doesn’t get their money back from you, they’ll take the asset instead.
- Unsecured loans are another option for personal loans. They’re popular because they require no collateral, so your assets will be safe. However, the lender has more risk (nothing to hold on to if you fail to repay) so they are likely to charge a higher rate.
Whether you choose a secured loan or not, you also have the following options:
- Apply online. Online personal loans are very convenient since you can submit an application in the comfort of your home. If you’re interested in making an online loan application, check our comparison tables above and click the “Go to Site” button for your lender.
- Variable rate. A variable interest rate loan is linked to the current market conditions as influenced by the economy. If the rate goes down the total cost of your loan also goes down. However, the rate can also go up, so your monthly payments may fluctuate.
- Fixed rate. A personal loan with a fixed rate also has fixed monthly payments. Regardless of market conditions, the interest rate you get at the start of your loan remains the same until you finish your payments.
How long do you need to repay a R85 000 loan?
Personal loan terms typically have a minimum of 12 months and a maximum of 72 months. If you want to pay back the loan in smaller monthly payments, you can choose a longer loan term. However, since interest is charged on a monthly basis, the total cost of your loan goes up.
A shorter loan term has larger monthly payments but a lower total cost, so keep this in mind when choosing your term.
R85 000 loans for bad credit
A bad credit score can make it challenging to get a loan above R50 000. However, some South African lenders do offer bad credit personal loans. To increase your chances of approval, apply for a secured personal loan.
You can also make a joint application with someone who has a better credit score than you. This person will be responsible for your loan if you fail to make repayments.
Tips to help you find a loan with the most advantages
- Look for the lowest interest rate. The lowest rate you can get typically depends on your credit score. There are loans for average credit, good credit, and excellent credit.
- Find out about other fees. Choose a loan with the lowest fees. You’ll be able to keep the total cost of your loan down, which saves money. Standard charges to look out for include monthly service fees and initiation fees.
- Look for a loan provider who offers flexible terms. The lender should make it easy for you to borrow and repay, depending on your needs. An important example is being able to make early or additional payments at no extra cost.
What are the repayments on a R85,000 loan?
Your repayment will vary from lender to lender and will depend on factors such as your credit score, loan term and fees. A low credit score will increase your interest rate whilst a good credit score will reduce the interest rate. Longer-term loans will reduce your monthly repayment but will increase your total cost.
Typical costs when you borrow R85,000 over 36 months:
- Initiation fee: up to R1207.50
- Monthly admin fee: R69
- Interest rate: Between 14% and 27.50%
- Monthly repayments: R3,015 and R3,612
- The total cost on a R85,000 loan: Between R108,553 and R130,018
As you can see from the example above, the interest rate can have a significant impact on the total cost over the life of the loan.
What are common uses for this loan amount?
With so many expenses to cover in life, the good news about R85 000 personal loans is they can be used to pay for most things. Common reasons why South Africans take out this loan amount include:
How to apply for a R85 000 loan?
- Compare loans. Use factors like the interest rate and fees to find an affordable loan.
- Use our loan calculator. Choose a monthly instalment that fits your budget.
- Check for requirements. General requirements include valid South African ID number, bank statements, payslips, and a regular, monthly income.
- Click “Go to Site.” There’s a button for every lender in our comparison tables. Choose a lender and visit their website with one click.
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