Small loans in South Africa
Small loans of R500 to R4,000 are the main range for most online lenders here. On a small loan, fixed fees can cost more than the interest, so always check the total.
Compare small-loan lendersWhat a small loan is
"Small loan" is not a legal term. On this page, it means R500 to R4,000. That is the first-loan range at Prime Loans, Crediwise, Jabulani Money and LendPlus.
A small loan repaid within six months is a short-term credit transaction under the National Credit Act. So interest is capped at 5% a month on your first such loan in a calendar year.
Some lenders raise your limit once you have repaid. Prime Loans and Crediwise say repeat customers can borrow up to R8,000.
- R500 – R4,000: Prime Loans, Crediwise, Jabulani Money and LendPlus.
- R500 – R5,000: Creditbar.
- R500 – R8,000: Century.
Why fees weigh more on a small loan
Interest grows in step with the amount you borrow. The fees don't shrink in the same way.
The service fee is capped at the same R60 a month, plus VAT, whether you borrow R500 or R4,000. With VAT, that is R69 a month.
The initiation fee is capped at R165 plus 10% of the amount above R1,000, plus VAT. It may never be more than 15% of the loan.
On R500, that 15% limit means at most R75 plus VAT, or R86.25 with VAT. On R4,000, the cap is R465 plus VAT, or R534.75 with VAT.
Add it up for 30 days at the legal maximums. On R500, interest and fees can reach R180.25, or 36% of what you borrowed. On R4,000, the most is R803.75, about 20%.
| 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 |
| R1,500 | R75.00 | R45.00 | R247.25 | R1,891.25 |
| R2,000 | R100.00 | R60.00 | R304.75 | R2,473.75 |
| R3,000 | R150.00 | R90.00 | R419.75 | R3,638.75 |
| R4,000 | R200.00 | R120.00 | R534.75 | R4,803.75 |
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 R1,000, the most is R150 plus VAT (R172.50 with VAT).
Borrow only the amount you need
A lender may offer you more than you asked for. Take only what covers the cost in front of you.
Two small loans cost more than one loan of the same total. Each one carries its own initiation fee and monthly service fee. Jabulani Money allows only one active loan at a time anyway.
Whatever the amount, a registered lender must check that you can afford the loan. Small loans are not exempt from this check.
For a closer look at one amount, see our R500 loan, R1,000 loan and R4,000 loan pages.
Small-loan lenders compared
All six direct lenders are NCR-registered and lend from R500 to at least R4,000. MoneyHello, Letocredit and Creditomax are loan-matching services from R500. They pass your details to lenders and are not credit providers themselves.
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 R1,500 small loan can cost at most
This is a first short-term loan in the calendar year, repaid in one payment after 30 days. It shows the most a registered lender may charge, with VAT on the fees.
| Amount borrowed | R1,500 over 30 days |
|---|---|
| Maximum interest rate | 5% a month (first short-term loan) |
| Interest | R75.00 |
| Initiation fee (incl. VAT) | R247.25 |
| Service fees (incl. VAT) | R69.00 |
| One repayment | R1,891.25 |
| Most you would repay | R1,891.25 |
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.
Small loans in South Africa: frequently asked questions
What is the smallest loan I can get?
R500 is the lowest amount offered by the lenders on this page. All six direct lenders start at R500. Creditomax, Letocredit and MoneyHello also show amounts from R500.
How much can a R500 loan cost?
For 30 days, the most is R25 in interest and R86.25 as an initiation fee. The service fee adds R69. Both fees include VAT. So on a first loan you would repay at most R680.25.
Can I borrow more later?
Some lenders raise your limit after you repay on time. Prime Loans and Crediwise say repeat customers can borrow up to R8,000. Century lists R500 to R8,000 for all its loans.
What documents do I need for a small loan?
Most lenders ask for your SA ID and three months of bank statements. Prime Loans also asks for a payslip and proof of residence. An affordability check is required by law, however small the loan.
Is one bigger loan cheaper than two small ones?
Usually, yes. Each loan carries its own initiation fee and monthly service fee. A second short-term loan in the same calendar year does have a lower interest cap of 3% a month.
Related pages and sources
- R500 loans compared
- R1,000 loans compared
- R4,000 loans compared
- Payday loans and the 5% and 3% caps
- Loan calculator with the legal caps
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)
- Prime Loans – FAQ
- Crediwise – FAQ
- Jabulani Money – FAQ
- Century Financial Services – homepage and loan calculator
- Creditbar – homepage
- LendPlus – homepage