Loan repayment calculator
Set the amount and the term and this works out both figures that matter: what leaves your account each month, and what the loan costs you in total. Everything is calculated at the National Credit Act maximum for short-term credit, so the result is a ceiling — your own quote may be lower, and cannot legally be higher.
Rates and fees use the NCA caps for short-term credit agreements: interest 5%/month (3% repeat), initiation fee R165 + 10% of the amount over R1 000 (max R1 050), service fee R60/month, VAT 15% on fees.
| Principal — what you receive | R3 000 |
|---|---|
| Interest (5%/mo × 3 months) | R450 |
| Initiation fee | R365 |
| Service fee (3 × R60) | R180 |
| VAT on fees (15%) | R82 |
| Total cost of credit | R1 077 |
Your repayment schedule
Equal instalments; interest charged monthly on the principal, fees spread evenly.
| Month | Instalment | Still to pay after |
|---|---|---|
| 1 | R1 359 | R2 718 |
| 2 | R1 359 | R1 359 |
| 3 | R1 359 | R0 |
How to read the result
The instalment tells you whether the loan fits your month. The total tells you what it costs. People compare instalments and are surprised by totals, which is why both are shown with equal weight here.
Watch what happens when you extend the term. The instalment falls, which feels like an improvement, while the total climbs — because on short-term credit interest is charged on the full original amount every month, and each extra month adds another service fee and VAT on top.
What the National Credit Act allows a lender to charge
Maximums for short-term credit under the National Credit Act 34 of 2005. A registered lender may charge less — never more.
| Charge | Legal maximum | How it works |
|---|---|---|
| Interest — first loan | 5% per month | Applies to your first short-term loan in a calendar year. |
| Interest — repeat loan | 3% per month | Applies to further short-term loans taken in the same calendar year. |
| Initiation fee | R165 + 10% above R1 000, capped at R1 050 | Charged once, on the amount you borrow. Excludes VAT. |
| Service fee | R60 per month | Charged monthly for the life of the loan. Excludes VAT. |
| VAT | 15% on the fees | Added to the initiation and service fees — not to interest. |
Fee caps are published excluding VAT. With 15% VAT a R1 050 initiation fee costs you R1 207,50 and a R60 service fee costs R69 a month. Always compare the VAT-inclusive figure on your pre-agreement quote.
This is an estimate, not an offer
ZarCash is not a lender and cannot approve credit. This calculator applies the statutory maximum charges to the amount and term you enter. Only a registered credit provider can tell you what you qualify for, and only its pre-agreement quote is binding.
Check these three things before you sign — here or anywhere
- The lender’s NCRCP number is published on its own site, and it checks out in the National Credit Regulator’s register.
- The pre-agreement quote breaks out the total cost of credit: interest, initiation fee, service fee and VAT — as one figure you can compare.
- Nobody asks you for an upfront “release fee”. A registered credit provider never charges you before it pays out.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.