Short-term loans in South Africa
A short-term loan in South Africa has a legal meaning: R8,000 or less, repaid within six months. This page shows which lenders state terms in that window and what they can cost.
Compare short-term lendersWhat counts as a short-term loan under the National Credit Act
The National Credit Act calls it a short-term credit transaction. Two tests apply. The loan is R8,000 or less, and you repay it within six months.
If a loan passes both tests, the short-term interest cap applies. That is 5% a month on your first such loan in a calendar year, then 3% a month.
A loan that fails either test is usually treated as unsecured credit instead. Its cap is the repo rate plus 21%. That is 28.25% a year since 24 September 2026.
- R8,000 over 3 months: short-term rules apply.
- R8,000 over 7 months: the term is too long, so unsecured rules apply.
- R10,000 over 3 months: the amount is too big, so unsecured rules apply.
- One payment or monthly instalments: either can fit, as long as the loan ends within six months.
Which lenders state terms of up to 6 months
Not every provider publishes a loan term. The table shows each provider's own stated amount and term, as checked for our reviews.
| Provider | Type | Amount | Stated term | Fits the 6-month window? |
|---|---|---|---|---|
| Century | NCR-registered lender | R500 – R8,000 | 5 – 180 days | Yes, the whole range |
| Creditbar | NCR-registered lender | R500 – R5,000 | 7 – 61 days | Yes, up to about 2 months |
| Jabulani Money | NCR-registered lender | R500 – R4,000 | Repaid on your next salary date | Yes, until your next payday |
| Crediwise | NCR-registered lender | R500 – R4,000 | Not published | Ask for the term before you sign |
| LendPlus | NCR-registered lender | R500 – R4,000 | Not published | Ask for the term before you sign |
| Prime Loans | NCR-registered lender | R500 – R4,000 | Not published | Ask for the term before you sign |
| Binixo | Loan-matching service | R1,000 – R50,000 | Up to 6 months | Yes, set by the matched lender |
| Dengoo | Loan-matching service | Up to R350,000 | 1 – 365 days | Only offers of 6 months or less |
| MoneyHello | Loan-matching service | R500 – R25,000 | 3 – 72 months | Only offers of 3 to 6 months |
Terms checked in October 2026 on each provider's own website. Binixo's footer also mentions terms of 91 to 120 days. A matching service's partner lender sets the final term.
Choosing between 1 and 6 months
A longer term lowers each instalment. But you pay interest for longer, and the service fee of R69 a month with VAT runs every month.
Take R4,000 at the legal maximums as an example. Over 1 month, you repay at most R4,803.75 in one payment.
Over 3 months, you repay at most R5,148.25, in three instalments of R1,716.08. Over 6 months, the most rises to R5,677.17, or R946.19 a month.
So choose the shortest term you can repay without borrowing again. A smaller instalment is only worth it if the shorter term would leave you short.
When you need more than R8,000 or longer than 6 months
Then the loan is no longer short-term credit. It falls under the unsecured cap of 28.25% a year instead.
Matching services such as MoneyHello and Binixo cover larger amounts through their partner lenders. See personal loans for longer terms. Our guide to long-term vs short-term loans compares the two.
Short-term lenders compared
The six direct lenders are NCR-registered and lend R8,000 or less. Binixo, MoneyHello and Dengoo are loan-matching services that pass your details to lenders. They are not credit providers, and their partners may offer terms longer than six months.
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 R4,000 loan over 3 months can cost at most
This is a first short-term loan in the calendar year, repaid in three equal monthly instalments. Interest and fees are all at the legal maximum, with VAT on the fees.
| Amount borrowed | R4,000 over 3 months |
|---|---|
| Maximum interest rate | 5% a month (first short-term loan) |
| Interest | R406.50 |
| Initiation fee (incl. VAT) | R534.75 |
| Service fees (incl. VAT) | R207.00 |
| Monthly instalment (3 payments) | R1,716.08 |
| Most you would repay | R5,148.25 |
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.
Short-term loans in South Africa: frequently asked questions
What is the maximum for a short-term loan in South Africa?
Under the National Credit Act, a short-term credit transaction is R8,000 or less. It must also be repaid within six months. A larger or longer loan falls under a different cap for unsecured credit.
Can I get a 6-month short-term loan?
Yes, if the loan is R8,000 or less. Century states terms of 5 to 180 days, which reaches six months. Binixo, a matching service, states terms of up to 6 months, set by the lender it matches you with.
Is a short-term loan cheaper than a personal loan?
Not per year. The short-term cap of 5% a month works out to 60% a year, above the 28.25% unsecured cap. But a short loan runs for less time, so the interest in rand can still be lower.
Can I repay a short-term loan early?
Yes. The National Credit Act lets you settle a loan early. Ask your lender for a settlement quote, which shows what you owe on that day.
Do short-term loans need a credit check?
Yes. Registered lenders must check that you can afford a loan before they approve it. Century, for example, lists a credit bureau check as part of its process. Most lenders also ask for three months of bank statements.
Related pages and sources
- Payday loans and the 5% and 3% caps
- Personal loans over longer terms
- R8,000 loans compared
- Long-term vs short-term loans
- Loan calculator with the legal caps
Sources
- National Credit Regulator – register of registered credit providers
- National Credit Act 34 of 2005 (gov.za)
- Century Financial Services – homepage and loan calculator
- Century Financial Services – FAQs
- Creditbar – FAQ
- Jabulani Money – FAQ
- Binixo – homepage
- MoneyHello – homepage
- Dengoo – homepage