Two numbers to check
Read both the largest repayment and the total to repay. A smaller monthly amount does not automatically make an offer affordable.
The same loan, three repayment plans
| Full monthly periods | Repayments in order | Interest | All fees | Total to repay |
|---|---|---|---|---|
| 1 | R1 635.00 | R45.00 | R90.00 | R1 635.00 |
| 2 | R885.00 · R802.50 | R67.50 | R120.00 | R1 687.50 |
| 3 | R635.00 · R560.00 · R545.00 | R90.00 | R150.00 | R1 740.00 |
The same R1 500 first loan across three repayment terms
1 month
Total to repayR1 635.00
- Month 1 repayment
- R1 635.00
- Total interest
- R45.00
- All fees
- R90.00
2 months
Total to repayR1 687.50
- Month 1 repayment
- R885.00
- Month 2 repayment
- R802.50
- Total interest
- R67.50
- All fees
- R120.00
3 months
Total to repayR1 740.00
- Month 1 repayment
- R635.00
- Month 2 repayment
- R560.00
- Month 3 repayment
- R545.00
- Total interest
- R90.00
- All fees
- R150.00
Lendeka first-loan model: R1 500 paid to you, 3% per full month on the outstanding principal, R60 initiation fee, R30 service fee per full month. Fees include applicable VAT. No insurance premium or Together benefit. Repayments made on time. Actual dates and partial periods are set out in your quotation.
Over one month, the total is R1 635.00. Over three months, it is R1 740.00: R105.00 more overall. In return, the principal is spread across three payments rather than falling due at once.
Why the first payment is higher
The once-off initiation fee is included in the first payment. Interest is charged on the balance at the beginning of each period; that balance falls as principal is repaid. The three-month example therefore has payments of R635.00, R560.00, R545.00, in that order. Budgeting for a simple average would understate the first payment.
Match the schedule to money coming in
Look at the actual due dates in the offer. A term of three months does not tell you whether the first payment is before or after your next payday. If income is irregular, check the weeks between income payments as well as the monthly total.
Use the budget planner for essentials, current debts and irregular bills before adding the proposed repayment. Leave room for costs that do not arrive every month.
Choose a manageable commitment
Compare identical amounts before changing the term.- Check every payment, especially the first one.
- Ask about the actual first due date and any partial-month adjustment.
- Reduce or reconsider the borrowing if every available schedule leaves a shortfall.
A longer term is not a remedy for a repeated gap between income and essential spending. Read about other ways to approach an expense if repayment would require further borrowing.
Try your own amount
The loan calculator uses the same pricing engine as this table. Change the amount and term, then open the repayment details. Returning customers can separately check an eligible Together benefit; it reduces the initiation fee, not the interest rate.