The National Credit Act has given borrowers the opportunity to compare personal loans in South Africa. Each lender is required to provide a quote including the principal amount, interest rate, payable fees, the total cost of the loan, the size of the monthly payment and the repayment schedule.
You should obtain quotes from as many lenders as possible and not only from banks like Capitec Bank and Standard Bank. This will increase your chances of finding the best deal through the method of comparison shopping.
Be patient when comparing loans
You should base your comparison on all details of the quotes described above. Make sure that the principal fulfils your needs. Look for the lowest possible interest and fees. The monthly payment should fit into your budget perfectly. It is best if it does not take up more than a third of your income. Pay attention to the term of the loan as well. When it is longer the monthly instalment is larger but the total cost is lower and vice versa.
Take your time when comparing personal loans in South Africa.