The money and the price
| Term | Meaning in practice |
|---|---|
| Principal | The amount borrowed. Check how much is actually paid to you and whether any fee is financed. |
| Outstanding principal | The portion of the borrowed amount that has not yet been repaid. It is not always the full settlement balance. |
| Interest | The charge for borrowing over time. Check the rate, time period and balance used. |
| Initiation fee | A once-off fee for establishing the loan. Check when it is paid. |
| Service fee | An administration charge that can recur over the repayment period. |
| Total repayment | All scheduled repayments added together. Compare this with the money you receive. |
| Cost of borrowing | The difference between the total repayment and the principal in Lendeka’s estimate. |
On Lendeka’s R1 500 first-loan example over one full month, the total repayment is R1 635.00 and the cost of borrowing is R135.00. Read the complete breakdown and assumptions.
The schedule and your account
| Term | Meaning in practice |
|---|---|
| Instalment | One scheduled payment, made up of the components shown in the agreement. |
| Pro rata | Adjusted for part of a period. The quotation should explain the basis used. |
| Arrears | An amount that should already have been paid under the agreement. |
| Settlement figure | A dated amount to pay to close the loan, allowing for the account’s current position. |
| Paid-up letter | Written confirmation of repayment or closure after payments have been allocated. |
| Debit-order mandate | The authority for collections from a bank account under agreed terms. It is separate from the underlying debt. |
A public estimate is not a current statement. If you need to close a real account, ask for a dated settlement figure.
The checks before an offer
Credit check: a review of relevant credit information. Affordability assessment: an assessment of whether the proposed commitment can be repaid alongside income, essential costs and existing obligations. Quotation: the written price and payment details offered before acceptance.
A previous approval, a selected calculator amount or an authenticated debit order is not approval of a new loan. See the checks explained.
If a word is still unclear
Point to the exact line in your offer and ask what it changes in rand, dates or obligations. Ask for an explanation before agreeing. Read the quotation checklist alongside the document.
Sources and further reading
Reviewed 28 October 2026. General information from Lendeka; your agreement and applicable law govern your loan.