Important disclosure

Secured Personal Loans

Secured personal loans offer another solution for lower interest loans since a security is requested along with this loan type. South African lenders could assist you with these loan options.

We have created a loan calculator that can help you budget for these monthly repayments. Input the loan amount and adjust the loan terms until you come up with a suitable monthly payment. It’s simple and easy to use so go ahead and give it a try.

Calculate repayments

Loan Amount



3 months

Arcadia Finance

Consolidation Loans

Estimated Month Repayments
Interest Rate
Repayment Period
12 months
to 72 months
Loan Amounts
to R250,000
Arcadia Finance helps you find the best debt consolidation loans from leading South African loan providers by comparing options from authorised banks and lenders. Fill out our free, no-obligation, online application to save hundreds of rands in interest rates and costs.
Arcadia Finance

Personal Loans

Estimated Month Repayments
Interest Rate
Repayment Period
12 months
to 72 months
Loan Amounts
to R250,000
Arcadia Finance helps you find the best loans from leading South African loan providers by comparing options from authorised banks and lenders. Fill out our free, no-obligation, online application to save hundreds of rands in interest rates and costs.

The Right Personal Loan Matched to You

Estimated Month Repayments
Interest Rate
Repayment Period
12 months
to 72 months
Loan Amounts
to R250,000
MyLoan is the easiest way to get loan offers from many lenders. With one application, you will be pre-vetted at many lenders and can see which lenders can give a loan to you today! provides factual information in relation to financial products. While attempts to make a wide range of products and providers available, it may not cover all the options available to you. Moreover, we cannot be responsible for changes made to this information by product providers and/or inaccurate information obtained from a product provider. All product information comes from the product provider or publicly available information and to the best of our knowledge is correct at the time of publishing. The information published on is general in nature only and does not consider your personal objectives, financial situation or particular needs and is not recommending any particular product to you. If you decide to apply for a product you will be dealing directly with that provider and not with recommends that you read the relevant product disclosure statement or product guide before taking up any financial product offer. For more information please see's Terms of Use.

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 get a secured personal loan in South Africa

Many South Africans have used personal loans to pay for their wedding, buy their dream car, or visit beautiful holiday destinations. Personal loans also make your life easier if you have an emergency or debts that need paying off (debt consolidation). Although most personal loans are unsecured, you can also get a secured loan which offers lower interest rates that help you save money.

Here’s what you’ll learn in this article:

  • How secured personal loans work and why you should choose one;
  • The pros and cons of this type of loan; and
  • How to choose the best secured loan for yourself.

How does a secured personal loan work?

A personal loan allows you to borrow between R2000 and R300 000. Depending on the amount you borrow you can pay back the money in 1 month or over any period up to 84 months (7 years). With unsecured loans, the lender gives you a lump sum of money based on your creditworthiness or ability to pay it back. In this case, the loan provider looks at your income or credit score to see if you can be trusted to make the required repayments (low risk).

However, with secured loans, the lender tries to remove the risk by asking you to use your house, car or other assets to secure the loan. If you don’t repay the loan, the lender simply takes the car or house from you so they can recover their money.

Types of secured loans

If you’re searching for a secured loan in South Africa, there are several options available:

  • Secured loans against your house – If you’re taking out a home loan, you can use the house you’re buying as security against the loan. A personal loan secured against property offers easy approval and lower interest rates.
  • Secured car loans – If you’re taking out a car loan, you can use the new or used car you’re buying to secure the loan.
  • Home equity loans – Also called a second mortgage or second bond, a home equity loan allows you to get back the money you have already paid on your home loan.
  • Title loans – These are usually personal loans secured with cars or property that you already own.
  • Personal loans guaranteed by other assets – These are also called personal asset secured loans. They allow you to use very valuable assets such as precious stones or boats as a guarantee for the loan.

Reasons why a secured personal loan might be right for you

Although a secured personal loan comes with certain benefits, it’s still better to first check if it’s the right type of loan for you. There are a few reasons why a secured personal loan might be a good idea:

  • You need a quickly accessible loan: This type of loan can be made readily available if you have the required collateral.
  • The situation is right for you – If you already own a suitable asset or if you’re using the loan to buy a suitable asset, you might find it convenient to just use it as security.
  • Lower interest rates – A secured loan means less risk for the lender and a potentially lower interest rate for you. If you’re looking for a cheap loan, a secured loan can lower interest costs for you.
  • You can borrow more – Lenders are usually willing to advance you a larger loan amount if you put up collateral. It is safer for them since they can always sell your assets to recover the outstanding balance if you fail to repay.
  • You can afford the monthly repayments – If you’re confident about being able to afford the monthly payments, you can secure your personal loan. Otherwise, you risk losing the asset if you fail to make these monthly payments.
  • You have bad credit – Sometimes, a secured personal loan is the only way to get funds if you have bad credit.

What can you use to secure a loan?

  • Your car – This can be a new or used car. It can also be a car you already own or the car you’re buying with the loan.
  • Your house – As mentioned earlier, you can use your home to get a bond or a second bond (home equity loan).
  • Other valuables – If you have other assets of high value such as jewellery, machinery, or equipment, they can be used to secure the loan. The asset will be valued using the current market, and the lender has to be willing to accept the use of the asset as security for the loan.

Advantages of secured personal loans

The benefits of a secured loan come from the fact that the lender carries less risk. As a result, they’re more willing to offer you a loan and confident about getting it back. When you make repayments the lender recovers their money. If you default, the lender still recovers their money by claiming the asset you used to guarantee the loan. That means you can:

  • Have your application easily approved;
  • Borrow more money;
  • Save money with lower interest rates; and
  • Borrow money if you have bad credit.

Disadvantages of secured personal loans

When you take out a personal loan, you also take on the following risks:

  • If you fail to repay you lose the personal property
  • Secured loans usually offer longer loan terms, and you might still end up paying a lot in interest

Use our secured personal loan calculator to find the best monthly repayment

A secured personal loan gives you a lump sum of cash to buy or pay for many things. However, before you start applying and enjoying the benefits, it’s crucial to protect yourself from the risks associated with this type of loan. The secured personal loan calculator from helps you find an affordable monthly instalment. If you take out a loan you can afford, you reduce the risk that you’ll lose your asset or personal property. To use the calculator simply input the loan amount and term and click calculate.

Finding the best secured personal loan for yourself in South Africa

Asking yourself the following questions helps you find the best secured personal loan that suits your individual situation:

  • How much can I borrow? – Make sure the lender allows you to borrow a loan amount that is enough for your needs.
  • What is the length of the loan? – Check to see if you can get enough time to pay back the loan. Personal loan terms usually range from 1 month to 84 months (7 years).
  • What asset can I use for the loan? – Check to make sure the asset you plan to use for the loan meets the requirements set by the lender.
  • Is the interest rate competitive? – A lower interest rate reduces the total cost of the loan. Also, check the APR, which includes rates and fees for the loan.
  • What are the fees and charges? – Some loans have low interest rates, but they’re still expensive. Find out about the monthly service fee and initiation fee plus any other fees you’ll be charged.
  • Are the terms flexible? – The main thing to check for,
  • is if you can make early payments or additional payments without being charged any extra fees.

More questions and answers about secured loans in South Africa

What are secured loan interest rates?

The National Credit Act (NCA) stipulates the maximum interest rates for personal loans in South Africa. The exact rate you get varies from lender to lender. It also depends on the asset you’re using to secure the loan. Secured loan interest rates are also partly determined by your credit score and your income.

Are there secured consolidation loans?

Yes. With this type of loan, you use an asset to secure a debt consolidation loan. Secured consolidation loans are used to pay off your existing debts. That way, you’re only left with that one loan and a single monthly payment that is easier to manage.

Can you get secured loans for pensioners?

Yes. Secured loans for pensioners are available in South Africa. For example, you can use your retirement savings as security for a Pension Backed Home Loan.

How do I apply for a secured personal loan online?

First, we recommend using the secured personal loan repayment calculator to compare secured loan options and find the best monthly repayment. Next, click on the “Go to Site” button for the lender you want in the comparison tables above. This takes you to the correct website where you can submit your online application.

What do I do if I have nothing to secure my personal loan?

If you don’t have an asset or you don’t wish to put up your asset as security for the loan, you can always apply for an unsecured personal loan. The main difference between secured and unsecured loans is that unsecured loans don’t require security and, therefore, have higher interest rates.

Find out more about unsecured personal loans.

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