Start with two numbers
The amount paid to your bank account and the total amount you must repay answer different questions. The first tells you what is available to use. The second tells you what the borrowing costs over the agreed term. The difference is the cost of credit for that repayment scenario.
Check whether any fees are deducted from the payout or financed into the balance. A loan described as R1 500 may not put R1 500 in your account if a lender’s terms deduct charges first. Lendeka’s illustrated product pays the full principal and includes the initiation fee in the first repayment.
Read the interest period
A percentage is incomplete without its period and calculation basis. Ask whether it is monthly or annual, and whether it applies to the original amount or the reducing balance. The Lendeka estimate uses 3% per full month on the opening principal balance for that month.
With several repayments, the balance reduces after each principal payment. A lower later interest charge does not mean a different rate: the same rate is being applied to a smaller balance.
Separate once-off and recurring fees
An initiation fee is associated with establishing the agreement. A service fee recurs for administration. Insurance, if required by a different product, must also be considered. Check whether the displayed charges include applicable tax rather than adding the fee labels without checking their basis.
| Cost | Amount |
|---|---|
| Amount paid to you | R1 500.00 |
| Interest: 3% for one full month | R45.00 |
| Initiation fee | R60.00 |
| Service fee: one full month | R30.00 |
| Credit life insurance | Not charged |
| Total to repay | R1 635.00 |
Read each payment, not an average
One repayment may be larger because it includes a once-off fee. A rounded average can hide that difference. Read the amount and date on every line of the schedule. Keep enough money available for the largest payment, rather than budgeting only for the average.
Understand what changes the figure
Dates, a different amount, a longer term, a benefit or a payment made late can change the result. The public calculator uses full monthly periods. A quotation uses the agreement’s actual dates and applicable pro rata charges. Ask for an updated written quotation if the inputs change before acceptance.
Use the repayment calculator, then compare its breakdown with the personalised offer. For the product’s complete pricing, read costs and fees.
Sources and further reading
Sources checked on 28 October 2026. This page explains general information; your agreement and applicable law govern your loan.