Loans can be a very helpful financial tool, but it can be difficult to know where to start. There are a lot of shady providers out there offering unfavourable terms, high interest rates, and poor customer service. The good news is that South Africa has a number of fantastic loan providers if you know where to look.

Here are five great personal loan providers currently available in South Africa.


FNB, or First National Bank, is a quality personal loan provider that issues loans between R1000 – R300 000. Their interest rate are tailored to your specific profile but can start as low as 13%. If you decide to pay off your loan early, FNB will not impose any additional charges. New loans come with a R69 monthly service fee as well as a R6 037.50 one time initiation fee. In order to qualify you must be aged 18-64, a resident of South Africa, and be fully employed or self-employed with your salary being paid into your bank account. You also must have credit insurance in the case of death, disability, or inability to earn an income.¹


Capitec is a popular bank that provides personal loans of up to R250 000. It’s possible to get approved for credit in just minutes online and payments are made to your account very quickly. Interest rates start as low as 12.9% and your specific rate will vary depending on your profile. Loans can be easily managed using the Capitec mobile app. Capitec does require credit insurance to cover death, disability, and inability to make payments. In order to apply, you must be over the age of 18 and receive a regular salary. New loans have an initiation fee of between R649.75 and R1 207.50 and a monthly service fee of R69.²

African Bank

African Bank is another well known bank offering personal loans of up to R250 000. Interest rates range from 15% to 27.50% APR depending on the specific profile of the applicant. In order to apply for a loan with African Bank, you must be a South African resident over the age of 18 with a bank account and at least 3 months of recent salary deposits. It’s possible to apply online, via phone, or in a local African Bank branch. Note that African Bank does charge an initiation fee for new loans of R1 197 and a monthly administration fee of R68.40. They also require insurance on their loans which cover your payments in case anything happens to prevent you from making repayments. The cost of this insurance is an additional 5.04 to 5.4% APR interest.³


BusinessFuel is a great loan provider specialised in those looking for funding for their business. They offer business loans between R100,000 and R2,000,000 and the entire application process and loan issuance is handled online. Interest is charged at 3.5% monthly on the outstanding balance remaining on the loan. There are no initiation or monthly administration fees to take a loan from BusinessFuel. It’s also possible to pay off the loan early if desired. Note that BusinessFuel does not offer personal loans, instead focusing entirely on business loans.⁴


DirectAxis is another quality lender worthy of consideration. They are the lending branch of FirstRand Bank Limited and they have been in business for over 20 years. Their interest rate varies based on your profile with a maximum of 28.01% APR. They also charge an initiation fee which will varies for each person. There is an easy online application process, however in order to apply you must be a South African resident with a good credit history and a monthly income of at least R5 000.⁵

Finding The Best Personal Loan

Finding the right personal loan can be easily accomplished with a bit of research. Although these providers are a great start, you’ll still want to compare things for yourself to see what suits your personal needs best. A great way to get started with finding a personal loan is to perform an online search. This will reveal many of the different available loan providers and allow you to compare the different terms and interest rates so you can find a great loan for your specific scenario.

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