We break down the different types of loans for you.


Also known as unsecured loans.

With personal loans you pay higher interest rates. You can choose either a short or long repayment period and you can use the money as you please.


Student loans can only be used for educational purposes (unsecured loan). 

Monthly repayments to cover the interest are still required. Repayment of the loan occurs after you graduate. 


Payday loans are quick and easy to obtain and are best for emergency purposes (unsecured loan).

Payday loans poses a higher risk to lenders = higher interest rates are charged. Generally, you’ll have to repay 30-50% more of the amount you borrowed. These loans are required to be repaid within 28 days.


The loan is secured by an asset you own.

Failure to make repayments = The lender can seize the asset, liquidate it, and take the money they’re owed. As these loans are lower risk ,they have lower interest rates. Generally used to borrow larger sums of money than personal loans.


Specially designed for purchasing vehicles you can’t afford to pay in full in one payment.

Convenient to obtain. The car is used as collateral therefore lower interest rates are charged. You only get ownership of the car once you have paid off the loan in full. Until loan is paid in full, the lender will hold the deed of the car. The repayment period is usually from 1 year up to 5 years.


Depending on your income, financial status, and credit rating, you can loan as much as R1 000 000 from home loan lenders.

Repayment period = Within 20 to 30 years. The 20-year plan is preferred by South Africans for its affordable repayment terms. Interest rate can be either fixed or variable.


Designed to assist those struggling to repay several debts to different lenders.

Bank settles your debt = You then repay the bank. All your debt is moved into one place. Main benefit = Only one monthly payment to make instead of several. May be a secured or an unsecured loan. Often with a much better interest rate. This can afford you better flexibility and simplicity.


Low credit score or no credit history at all make it difficult to get a loan from a bank.

Lenders will look at your borrowing history and judge you as ‘high risk’. ‘Bad Credit’ loans have higher interest rates because of the ‘high risk’ profile. You might be asked to offer security for the loan. 


If you have a low credit score, you can get a guarantor loan.

You’ll need to ask someone else – known as the ‘guarantor’ – to be responsible for paying the debt if you can’t. The guarantor is required to have a good credit history. Downfall = Higher interest rates (normally between 40 and 50%). On time repayments helps to improve your credit score.

Need extra cash for a new car or just to make it to the end of the month? Apply For a loan today.