Payday loans in South Africa
A payday loan is a small loan you repay in one go when your salary comes in. Here is what the law lets lenders charge, and which registered lenders offer one.
Compare payday lendersWhat a payday loan is under the National Credit Act
The National Credit Act does not use the words "payday loan". Most payday loans count as a short-term credit transaction instead. That means a loan of R8,000 or less, repaid within six months.
A payday loan is usually much shorter than six months. You borrow before payday and repay the full amount, plus fees, when your salary is paid.
Only a lender registered with the National Credit Regulator (NCR) should lend to you. A registered lender must check that you can afford the loan before it approves it.
- Amount: R500 to R4,000 on a first loan at most lenders below. Century lends up to R8,000 and Creditbar up to R5,000.
- Term: until your next payday. Jabulani Money collects on your salary date, and Creditbar states 7 to 61 days.
- Repayment: one payment, collected by DebiCheck debit order on the agreed date.
- Cost: interest, a once-off initiation fee and a monthly service fee. The law caps all three.
The 5% and 3% interest caps in rand
On a short-term loan, interest is capped at 5% a month on your first loan in a calendar year. Any later short-term loan in the same calendar year is capped at 3% a month.
The count starts again on 1 January. So a second payday loan in the same year carries the lower 3% cap.
A lender may also charge two fees. The initiation fee is capped at R165 plus 10% of the amount above R1,000, up to R1,050. It may never be more than 15% of the loan.
The service fee is capped at R60 a month. VAT is added to both fees, so the service fee comes to R69 a month with VAT.
The table shows the most a 30-day payday loan can cost at these caps.
| Loan | Interest, first loan (5%) | Interest, later loan (3%) | Initiation fee incl. VAT | Most you repay (first loan) |
|---|---|---|---|---|
| R500 | R25.00 | R15.00 | R86.25 | R680.25 |
| R1,000 | R50.00 | R30.00 | R172.50 | R1,291.50 |
| R2,000 | R100.00 | R60.00 | R304.75 | R2,473.75 |
| R4,000 | R200.00 | R120.00 | R534.75 | R4,803.75 |
| R8,000 | R400.00 | R240.00 | R994.75 | R9,463.75 |
For a loan over 30 days, with every fee at the legal maximum and VAT added to fees. Totals include the R69 monthly service fee. Work out your own figures with our loan calculator.
Below R1,300, the 15% limit keeps the initiation fee under R165 plus VAT. On R500, the most a lender may charge is R75 plus VAT (R86.25 with VAT).
How repayment works on payday
When you accept the loan, you also approve a DebiCheck debit order with your bank. The lender collects the full repayment on the date in your agreement, usually your salary date.
Make sure your salary is paid before the debit order runs. A missed payment can add fees and harm your credit record.
If you can't pay on the day, contact the lender before the due date. Prime Loans and LendPlus both publish a page on postponing a repayment. See what happens if you miss a repayment.
- Prime Loans won't lend to you if you are under debt counselling or an administration order.
- Jabulani Money says active debt review or administration is a common reason for decline.
- Jabulani Money allows only one active loan at a time.
Ask yourself this before you apply
A payday loan can cover a one-off gap, such as a repair, until your salary arrives. But the whole amount plus fees comes off that next salary.
So ask one question first. After this repayment, will the rest of your salary still cover the month?
If the answer is no, you may need another loan soon after. Taking a new loan each month to repay the last one is a sign of debt trouble.
In that case, speak to a registered debt counsellor. You can find one on the NCR website, or call the NCR on 0860 627 627.
Payday lenders compared
The six direct lenders below are NCR-registered and lend from R500. MoneyHello and Dengoo are loan-matching services that pass your details to lenders; they are not credit providers. MoneyHello states terms of 3 to 72 months, so check the term in any offer.
NCR-registered lender · NCRCP22362
R500 – R4,000 · Payday (repayable on your next salary date)
NCR-registered lenders are listed first, then loan-matching services, in our commercial order. We may earn a commission if you apply through these links. It doesn't change what you pay. How we make money.
What a R2,000 payday loan can cost at most
This is a first payday loan in the calendar year, repaid in one payment after 30 days. Every fee is at the legal maximum, with VAT included.
| Amount borrowed | R2,000 over 30 days |
|---|---|
| Maximum interest rate | 5% a month (first short-term loan) |
| Interest | R100.00 |
| Initiation fee (incl. VAT) | R304.75 |
| Service fees (incl. VAT) | R69.00 |
| One repayment | R2,473.75 |
| Most you would repay | R2,473.75 |
Worked out at the legal maximums under the National Credit Act, with the repo rate at 7.25% (since 24 September 2026). A lender may charge less, never more. Check the exact figure in your pre-agreement quote. See all the legal caps or work out your own loan.
Payday loans in South Africa: frequently asked questions
Are payday loans legal in South Africa?
Yes, when the lender is registered with the National Credit Regulator. Registered lenders must keep to the National Credit Act caps on interest and fees. You can check a lender's NCRCP number on the NCR register at ncr.org.za.
What is the maximum interest on a payday loan?
On your first short-term loan in a calendar year, interest is capped at 5% a month. Later short-term loans in the same year are capped at 3% a month. On R2,000 for 30 days, that is at most R100 or R60 in interest.
How much can I borrow with a payday loan?
Most direct lenders on this page offer R500 to R4,000 on a first loan. Century lends up to R8,000 and Creditbar up to R5,000. Prime Loans and Crediwise say repeat customers may borrow up to R8,000.
Can I get a payday loan without a credit check?
No. Every registered lender must check that you can afford the loan before it lends. Most lenders here ask for three months of bank statements to see your income. Prime Loans won't lend to anyone under debt counselling or an administration order.
What if I can't repay my payday loan on time?
Contact your lender before the due date and ask about a new arrangement. A missed payment can add fees and harm your credit record. If you are struggling with several debts, find a registered debt counsellor through the NCR on 0860 627 627.
Related pages and sources
- Short-term loans: terms of up to 6 months
- Small loans from R500 to R4,000
- R2,000 loans compared
- Loan calculator with the legal caps
- Does Capitec offer payday loans?
Sources
- National Credit Regulator – register of registered credit providers
- National Credit Act 34 of 2005 (gov.za)
- SAnews (GCIS) – Be wise about borrowing: fee and initiation fee limits
- National Consumer Tribunal – NCR v Quick Bucks Cash Loans [2025] ZANCT 26 (initiation fee limits)
- Jabulani Money – FAQ
- Prime Loans – FAQ
- Prime Loans – How to postpone
- LendPlus – How to postpone
- Creditbar – FAQ