Important disclosure

Variable rate personal loans

Variable rate personal loans offer an option to take care of planned and unplanned expenses. South African lenders offer an assortment of loan options that could help you to meet these financial needs.

Our simple loan calculator can help you to decide which lender is offering you the better option. Just input the loan amount you wish to borrow then move the filter to see which loan term will match your budget better.

Calculate repayments

A cash loan from R2 000 up to R250 000. Fast, paperless application process. Decision in seconds. Cash in your account within 24 hours. Flexible repayment options; choose from 12 to 60 months. Free monthly statement via email or SMS. Customer Protection Insurance. Interest from as low as 15%.

Overview

Minimum loan amountR2,000

Maximum loan amountR250,000

Minimum term (months)12 months

Maximum term (months)60 months

Personal loan interest rates (base)15.00%

Personal loan APR15.00%

Monthly repayments (approx)R796

Total repayments (approx)R28,656

Total interest repayments (approx)R8,656

Rate typeFixed

Secured or unsecuredUnsecured

Initiation feeR936.50

Minimum monthly incomeR2,000

GO TO RCS

Other Fees & Information

Monthly feeR69.00

Quarterly feeR0.00

Annual feeR0.00

Other feesUnknown

Redraw facilityUnknown

Repayment scheduleMonthly

Early repayments allowedYes

Early repayments feeUnknown

Missed payment feeUnknown

For debt consolidation?Yes

Sponsored No

Telephone0861 729 727

Data accurate as of18.01.2020

GO TO RCS

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Get up to R250 000 over 1 – 84 months. Choose between the amount you want, the monthly installment that suits your pocket, or the option that gives you the lowest interest rate. Credit is approved in minutes and the money is available immediately. Pay fixed monthly repayments.

Overview

Minimum loan amountR50,000

Maximum loan amountR100,000

Minimum term (months)1 month

Maximum term (months)84 months

Personal loan interest rates (base)14.20%

Personal loan APR14.20%

Monthly repayments (approx)R797

Total repayments (approx)R28,692

Total interest repayments (approx)R8,692

Rate typeFixed

Secured or unsecuredUnsecured

Initiation feeR1,207.50

Minimum monthly incomeR3,000

GO TO Capitec Bank

Other Fees & Information

Monthly feeR69.00

Quarterly feeR0.00

Annual feeR0.00

Other feesUnknown

Redraw facilityUnknown

Repayment scheduleMonthly

Early repayments allowedYes

Early repayments feeUnknown

Missed payment feeUnknown

For debt consolidation?Yes

Sponsored No

Telephone0860 66 77 89

Data accurate as of12.07.2020

GO TO Capitec Bank

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Loans up to R250,000. Terms between 7 months and 72 months.

Overview

Minimum loan amountR10,000

Maximum loan amountR250,000

Minimum term (months)7 months

Maximum term (months)72 months

Personal loan interest rates (base)15.00%

Personal loan APR15.00%

Monthly repayments (approx)R805

Total repayments (approx)R28,980

Total interest repayments (approx)R8,980

Rate typeFixed

Secured or unsecuredUnsecured

Initiation feeR1,207.50

Minimum monthly incomeR2,000

GO TO African Bank

Other Fees & Information

Monthly feeR69.00

Quarterly feeR0.00

Annual feeR0.00

Other feesUnknown

Redraw facilityNo

Repayment scheduleMonthly

Early repayments allowedYes

Early repayments feeUnknown

Missed payment feeUnknown

For debt consolidation?No

Sponsored No

Telephone0861 111 011

Data accurate as of18.01.2020

GO TO African Bank

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Tired of those expensive repayments? Then switch your personal loans to Absa. It’s easy and with our guaranteed lowest interest rate, you will start saving money immediately. We can switch your personal loans of up to R350 000 and pay your creditors directly.

Overview

Minimum loan amountR15,000

Maximum loan amountR350,000

Minimum term (months)12 months

Maximum term (months)84 months

Personal loan interest rates (base)18.82%

Personal loan APR18.82%

Monthly repayments (approx)R845

Total repayments (approx)R30,420

Total interest repayments (approx)R10,420

Rate typeFixed or Variable

Secured or unsecuredUnsecured

Initiation feeR1,207.50

Minimum monthly incomeR2,000

GO TO Absa

Other Fees & Information

Monthly feeR69.00

Quarterly feeR0.00

Annual feeR0.00

Other feesUnknown

Redraw facilityNo

Repayment scheduleMonthly

Early repayments allowedYes

Early repayments feen/a

Missed payment feeUnknown

For debt consolidation?Yes

Sponsored No

Telephone0860 100 372

Data accurate as of12.06.2020

GO TO Absa

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Absa Study Loan

Absa
12 months
to 60 months
R15,000
to R100,000
10.00%

View fees & additional info +

Our study loan offers you the opportunity to borrow funds at a low interest rate to support yourself or someone you would like to benefit from study funding. Finance your full tertiary experience from the tuition fees, accommodation, study book and technical equipment you need for your studies. If you take out our study loan and you’re offered a lower interest rate elsewhere, we’ll beat it. Terms and conditions apply. Pay interest only for the 12 months and only start repaying from month 13.

Overview

Minimum loan amountR15,000

Maximum loan amountR100,000

Minimum term (months)12 months

Maximum term (months)60 months

Personal loan interest rates (base)10.00%

Personal loan APR10.00%

Monthly repayments (approx)R754

Total repayments (approx)R27,144

Total interest repayments (approx)R7,144

Rate typeFixed or Variable

Secured or unsecuredUnsecured

Initiation feeR1,207.50

Minimum monthly incomeR3,000

GO TO Absa

Other Fees & Information

Monthly feeR69.00

Quarterly feeR0.00

Annual feeR0.00

Other feesUnknown

Redraw facilityNo

Repayment scheduleMonthly

Early repayments allowedYes

Early repayments feen/a

Missed payment feeUnknown

For debt consolidation?No

Sponsored No

Telephone0860 100 372

Data accurate as of12.07.2020

GO TO Absa

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Get a Personal Loan of up to R300 000 for planned or unplanned expenses. Whether you need extra money to help turn your house into your dream home, walk down the aisle or go on that well-deserved holiday, FNB has the right credit solution for your every need.

Overview

Minimum loan amountR1,000

Maximum loan amountR300,000

Minimum term (months)1 month

Maximum term (months)60 months

Personal loan interest rates (base)13.00%

Personal loan APR13.00%

Monthly repayments (approx)R784

Total repayments (approx)R28,224

Total interest repayments (approx)R8,224

Rate typeFixed or Variable

Secured or unsecuredUnsecured

Initiation feeR1,207.50

Minimum monthly incomeR6,000

GO TO First National Bank

Other Fees & Information

Monthly feeR69.00

Quarterly feeR0.00

Annual feeR0.00

Other feesUnknown

Redraw facilityNo

Repayment scheduleMonthly

Early repayments allowedYes

Early repayments feeUnknown

Missed payment feeUnknown

For debt consolidation?Yes

Sponsored No

Telephone0861 113 010

Data accurate as of18.01.2020

GO TO First National Bank

Hide info -

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CompareLoans.co.za provides factual information in relation to financial products. While CompareLoans.co.za 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 CompareLoans.co.za 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 CompareLoans.co.za. CompareLoans.co.za recommends that you read the relevant product disclosure statement or product guide before taking up any financial product offer. For more information please see CompareLoans.co.za's Terms of Use and Services Guide.

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.

What type of loan are you looking for?

Variable rate personal loans in South Africa

When you take out a personal loan, you can choose either a fixed interest rate or a variable interest rate. Understanding how interest rates work helps you to choose a personalised loan that is suited to your situation. Remember, when it comes to loans, what works for someone might not work for you. While others might choose a fixed rate for their personal loan, a variable rate loan might be a better option for you. We explain how variable interest rate works so you can choose the best personal loan for yourself.

Introduction to personal loan interest rates

You can’t borrow money from a South African lender for free. These financial institutions make a profit when they charge fixed and variable interest. How much you have to pay back depends on the interest rate. The higher, the rate, the more you have to pay back. However, a low rate is much better since you can save money by paying less each month. Overall, the lower the interest rate, the cheaper the loan becomes.

How does a variable interest rate work?

As the name suggests, variable rates vary from time to time, that is to say, they change. This is compared to fixed rates which remain the same as long as you’re paying back your loan. Remember, the monthly instalments for your loan also include the interest charged by the lender.

Therefore, if your personal loan has a variable rate, it means the amount you pay back each month will be affected every time the interest rate changes. When the rate goes up, the monthly instalments increase which means the total cost of your loan will be higher. On the other hand, if the rate goes down, the monthly instalments decrease, which means the total cost of your loan becomes lower.

Why does the interest rate change?

A variable rate is also called a linked rate because it is linked to the activities of the South African Reserve Bank (SARB). In short, here’s how the process works:

  1. South African banks borrow money from the Reserve Bank, and they also pay interest. The interest rate charged by the Reserve Bank to banks is called the repo rate, base interest rate, or repurchase rate.
  2. To make a profit, the banks have to charge you an interest that is higher than the repo rate. This interest rate that banks charge their customers is called the prime lending rate.
  3. If the repo rate which is the base interest rate goes up, this results in rates rising. If the repo rate goes down, the prime rate also goes down.

How often does a variable interest rate change?

Since variable rates are linked to the market rate, it means your interest rate will be affected every time the repo rate changes. The Reserve Bank of South Africa usually changes the repo rate to reflect the current economic activities of the country.

Therefore, how often the variable rate changes depends on how stable the South African economy is. If the economy is stable interest rates will also remain stable, usually at a lower percentage. However, things like inflation and oversupply of money in the economy can cause the Reserve Bank to adjust the repo rate, which affects your loan payments if you have a variable rate loan.

Why should you choose a variable rate personal loan?

Besides the risk involved, variable rate loans can be perfect for you in the following cases:

  • When you borrow money for a short period. That means you’re planning to pay back the loan quickly before the interest rate goes up.
  • If you’re expecting the rate to go down while making repayments for your loan, you can choose a variable rate loan.
  • If you’re looking for a starting interest rate that is lower and willing to handle the risk of an increased interest rate.

You can save even more with a variable interest rate

With a variable rate, you can get a lower rate since the bank can still make a profit from you when rates go up. However, the exact rate you get is also determined by your credit score. If your credit score is excellent, there is even less risk for the lender since they know you’re good at paying back your debts. Therefore, combining variable interest rate personal loans with a good credit score can help you save more. Another way to get a lower interest rate on your variable rate loan is to choose a secured loan.

Advantages of variable interest rates

  • Lower starting interest rates – That means a lower monthly payment which makes the personal loan more affordable.
  • You save money when the rate goes down – In this case, your monthly payment and therefore, the total cost of the loan is further reduced.
  • They’re flexible – If the interest rates get too high, you have an option to switch to a fixed rate personal loan through debt consolidation.

Disadvantages of variable interest rates

  • No guarantee the interest will go down – If the rate increases, you have to pay more each month, and this makes your monthly payment less affordable. In addition, the total cost of your loan also increases as you pay more interest over the life of the loan.
  • It’s harder to budget for future payments – You might have to adjust your budget several times, especially if you’re keeping the loan for a long time.

How to choose the best South African lender for your variable rate personal loan

There’s more to choosing a cheap loan than the interest rate. Also, consider the following before making a personal loan application with any lender:

  • Fees and charges: Even if the interest rate is low, the total cost of the loan can still be high if the lender has high fees and charges. Common charges include a monthly service fee and an initiation fee.
  • APR (Annual Percentage Rate): This is also called a comparison rate because it includes interest plus other costs of borrowing money. It helps you compare loans so you can choose a loan that has a lower total cost.
  • Loan terms and conditions: Look for a lender that offers flexible repayment terms. For example, it’s beneficial to have a loan that allows you to make an early repayment without being charged extra fees.

Tips for choosing the best variable rate personal loan

  • Take out a loan you can afford – You can use our loan calculator to find the right loan amount that offers affordable monthly payments.
  • Check for any hidden fees – Make sure you know of all the fees involved before applying for the loan.
  • Balance your monthly payments with your repayment period – It’s important to remember that while a longer repayment period gives you a lower and more affordable monthly repayment, you’ll also have to pay more in interest. The best thing is to choose a loan that has affordable payments but which you can pay off as quickly as possible.

Applying for a variable interest rate personal loan

We have showcased popular South African lenders in our comparison tables to make the process of choosing a loan easier for you. Once you have made your choice, simply click the correct “Go to Site” button which takes you to the right website where you can start your online application process. To qualify for the loan, you will have to meet the following general requirements:

  • Minimum of 18 years;
  • South African ID;
  • Proof of income; and
  • Proof of residence.

Variable vs fixed rate

You can also choose a fixed interest rate for your loan. How do you feel about taking a personal loan with an interest rate that never changes? Although a fixed-rate loan usually comes with higher interest rates, they offer peace of mind and stability since you pay the same amount every month. If you think this is a better option for you, go ahead and find out more about fixed interest rates here.

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