Comparing Interest Rates and Terms: Finding the Best Loan Deals for Blacklisted Borrowers in South Africa

Borrowing can be complicated, particularly if you are one of the 15% of South Africans in default, but there are ways to find the best deals. By understanding the basic ingredients, such as interest rates and loan terms, you can choose the loan product that best suits your situation and wallet.

Understanding Loan Interest Rates

One of the most important things to look at when comparing loans is the interest rate. Interest rate is simply the percentage of the amount you borrow which you have to pay to the lender. This will have an immediate impact on the total amount that you will have to repay as well as in the monthly payments.

Fixed Interest Rates:

With a fixed rate, your interest rate remains the same for the full loan period. Your repayments won’t change, so the end result is rather predictable (very handy if you hate uncertainty). Fixed rates are great for people who prefer to lock in a rate so that their payments don’t change.

Variable Interest Rates:

Variable interest rates are different because they can change over time depending on market conditions. A variable rate might start lower than a fixed rate but can go up, meaning your monthly repayments will increase. Variable rates are ideal if you are OK with potentially changing rates and want an initially lower rate.

Loan Terms to Consider

Loan terms are the period over which you will repay the loan and are one of the most significant influences on both the total cost of the loan and your monthly payments.

Short-term Loans

Short-term loans have large installments each month, but the overall interest on the loan is lower. They are useful if you can afford to pay more each month and want to pay off your loan quickly.

Long-term Loans

Long-term loans stretch out repayments over a longer repayment period, making the monthly payments smaller but the total interest costs higher. They are beneficial if your monthly budget is tighter and you need to keep payments low.

R +
months +
% +
?For example service fees and account management fee
?For example opening fees and agreement fees
R 2100.19
60 months
R 26011.17
R 0.00
R 126011.17
9.93 %
Show repayment plan

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*Representative example: Estimated repayments of a loan of R30,000 over 36 months at a maximum interest rate including fees of 27,5% APR would be R1,232.82 per month. Swift Banker is an online loan broker and not a lender. Our service is free, and we work with NCR licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicants' credit score and other factors at the lender's discretion.

Loan amount R100 - R250,000. Repayment terms can range from 3 - 72 months. Minimum APR is 5% and maximum APR is 60%.

Loans for Blacklisted Borrowers

As a blacklisted borrower, getting a loan isn’t entirely impossible. In South Africa, there are several microlenders that offer loans for blacklisted people. Such loans come with higher interest rates and more stringent terms.

But they also offer a chance for the lender to take on riskier loans and blacklisted borrowers to get the finances they need to help them repair their credit profile.

Secured Loans

A secured loan necessitates collateral, e.g., a car or property, and can work out cheaper because the lender can be assured of getting some of their money back. If you own assets, you might prefer this option.

Unsecured Loans

Unsecured loans don’t require collateral but typically have a higher interest rate. They are provided on the basis of your creditworthiness and ability to pay. Blacklisted borrowers can still hope to get an unsecured loan, though it would probably be more expensive for them.

Final Thoughts

Interest rates and loan terms vary greatly from lender to lender, so it is critical for blacklisted borrowers to compare them so as to find the best loan deals. Careful research and comparison can help you to make better financial decisions.

You too can be the master of your financial destiny with loan calculator, a simple tool that lets you compare a range of different loans and come out a winner each time. With our handy loan calculator, calculate those loans now, and secure your finances for tomorrow.