How repayment schedules work
A repayment schedule shows what you pay and when, and the two main South African credit types produce very different-looking ones. On short-term credit the instalments are typically equal; on a personal loan the split between interest and capital shifts every month even though the instalment does not.
What you need to know
On short-term credit the total is calculated up front — principal, interest for the full term, fees and VAT — and divided across the months. Each instalment is the same, and settling early stops the remaining interest and service fees.
On a personal loan the instalment is level but its composition changes: early instalments are mostly interest, later ones mostly capital. This is why settling a personal loan halfway through does not halve the interest you have paid.
You are entitled to statements, and it is worth checking them against your original quote. The two things to confirm are that the amount collected matches the schedule, and that the outstanding balance is falling as it should.
What R6 000 over 6 months actually costs
At the NCA maximum for a first short-term loan (5% a month). An illustration, not a quote.
| Line | Amount |
|---|---|
| Amount borrowed | R6 000 |
| Interest (5% × 6 months) | R1 800 |
| Initiation fee | R665 |
| Service fee (R60 × 6) | R360 |
| VAT on fees (15%) | R154 |
| Total you repay | R8 979 |
| Monthly instalment | R1 496 |
Cost of credit: R2 979 on R6 000 borrowed. Figures are calculated at the statutory maximum — your own quote may be cheaper, and must be shown to you in full before you sign.
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.