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.
Your guide to using the personal loan calculator
Are you interested in applying for a personal loan? Welcome! You’re one of the many thousands of South Africans who search for the perfect personal loan every month. With CompareLoans, the search has never been easier as you have access to crucial information about personal loans in one place.
In this guide, CompareLoans takes it a step further by explaining how their easy-to-use personal loan calculator can make your life easier with every step of the application process. Read on, get informed, and start using this useful tool for the best results in your personal loan application.
What is a personal loan?
A personal loan is money that you typically borrow from a registered credit provider. Before you receive the loan, you sign a contract in which you agree to pay the lender back. This agreement is not always simple because you have to pay back the borrowed amount, plus interest and other charges. On top of that, how much you pay back also depends on the loan amount, term, and interest rate.
Personal loans generally have the following features:
- You can apply for a minimum loan amount of R2000;
- The maximum loan amount is R300 000;
- You can make repayments over a minimum loan term of 1 month;
- The maximum loan term is 84 months; and
- Interest rate starts from as low as 10% and up to 27.75%.
As you can see, the range of options for personal loans in South Africa is very impressive. You get to choose a personalized, customized personal loan that takes care of your particular financial needs. But what is the best way to do this? That is where the personal loan calculator for South Africa comes in.
Before the lender can give out their money, they have to make sure that the borrower can pay back. As a responsible borrower, it is also your duty to make sure the loan you’re applying for is within your budget. With the personal loan affordability calculator, you can quickly learn the expected monthly repayment for any loan option. The result will help you decide if you can afford the loan or not.
What is a personal loan monthly repayment?
This is the most important result displayed when you use the loan payment calculator. It is the amount of money that you have to pay each month and which goes towards fulfilling your debt. Usually, each monthly repayment covers a percentage of the initial amount you borrowed plus interest and other loan related costs such as an initiation or monthly service fee.
What does defaulting on a personal loan mean?
Defaulting on a personal loan means that you would have failed to make your monthly repayments to the lender. This is more likely to happen if you take out a loan that you can’t afford. Using the personal loan repayment calculator helps you to avoid payment defaults. This is important because failure to pay back will negatively affect your credit score.
Does using the loan repayment calculator affect your credit score?
Using the CompareLoans personal loan calculator will not affect your credit score directly. However, in the long run, it can help you maintain a good credit score. This is because if you choose a loan with affordable monthly repayments, you’re unlikely to miss a payment.
Remember, your credit history shows all your past loan repayments, so if you default on a loan, this record will also be kept. Your loan applications may be declined in the future, and you can be blacklisted if you have a bad credit score.
Is there a personal loan interest calculator?
Your monthly repayment amount also depends on the interest rate you get. In most cases, the interest payments are also included in the monthly instalment. By looking at your total monthly repayments, you can have an idea of your total interest payments. Here’s an example to make things clearer:
- Loan amount: R50 000
- Loan term: 60 months (5 years)
- Initiation fee: R1 207.50
- Monthly admin fee: R69
- Maximum interest rate: 24.75%
- Maximum APR rate: 29.3%
- Approximate monthly repayment amount: R1565
- Total cost of the loan: R95 842
How to use the personal loan repayment calculator for South Africa?
- Use the first sliding tool to select your desired loan amount. You can also input the exact loan amount you want by typing. Your selected loan amount should be between R2000 and R300 000.
- Next, use the second sliding tool to select your desired repayment term. The minimum loan term is 1 month, while the maximum loan term is up to 84 months (7 years).
- The third step is to click “Calculate Repayment.”
- Within seconds the monthly repayment amount will be adjusted for all the personal loan lenders featured in the comparison tables above. Repeat the process until you have a monthly repayment you’re happy with.
Does the loan calculator make the application process easier?
When you want to take out a personal loan, the loan repayment calculator will make life easier and simpler for you as you go through the following steps:
- Comparing loan options – A loan repayment calculator usually comes in handy when comparing loans. It will immediately tell you which loan is affordable based on the loan amount and term you want.
- Understanding loan terms and conditions – The first step is checking the overall cost of the loan you want to take out. You can do this by using the personal loan affordability calculator. The monthly instalment amount will give you a good idea of the total costs involved.
- Checking loan requirements to see if you qualify – This is an important step as it saves you from applying for a loan amount you don’t qualify for. Your repayments will tell you if you qualify for the loan based on your monthly income and expenses.
- Making an application – Knowing that you are applying for a loan you can afford gives you the confidence to approach a lender and start the application process.
- Signing the loan contract – Your application is more likely to be approved if the lender thinks you are able to pay back the loan. If you apply for an affordable loan with affordable monthly repayments you can reasonably expect to receive money in your bank account after signing the loan contract.
- Paying back the loan – Loans are usually paid back in monthly instalments. The process should be smooth if you use the loan calculator to pick an affordable monthly repayment before you apply.
You can use the loan calculator to check the monthly repayment for the following types of personal loans:
Which personal loan should you choose?
There are several factors to consider when taking out a personal loan. One of the most important things that determine which loan you choose is whether you can afford to pay it back. For this, the first step is to check the monthly repayment amount using the personal loan affordability calculator, as directed above.
What else do you need before making a personal loan application?
When you have selected your desired monthly repayment, the next step is to make your personal loan online application. General requirements are as follows:
- Be over the age of 18;
- You have to be employed or self-employed;
- You need a regular, monthly income;
- Valid South African ID;
- 3 months’ payslips or bank statements; and
- Proof of residence, e.g. utility bill.
How to apply for a personal loan after using the loan calculator
After you have used the loan calculator and checked to see if you meet requirements, you simply select the ‘Go to Site.’ button for your preferred lender. You will be directed to the credit provider’s website and their direct online page.
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