Updated 29.01.2023

PEP Loans

Pep loan is a short-term loan and personal loan provided through Capfin,  the main lender. Unlike most loans, blacklisted individuals can apply for pep loans.

PEP Loans
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Who is PEP? 

Pep is one of the leading retail stores in South Africa. It has a good record for delivering affordable services and products. As a successful retail provider in SA, Pep store offers affordable accessories, clothing, and cell phone products.

Pep first opened its doors in 1965 in De Aar in South Africa’s Northern Cape. Today it has over 1,870 retail stores spread across the country and is the largest single-brand retailer in South Africa. Pep stores have also played a vital role in improving and making the lives of their customers easier by providing tailor-made loan solutions.

Who is Capfin?

Capfin is among the fastest-growing independent lenders in South Africa. It is owned by Century Capital (Pty) LTD, which is also a registered credit provider.

Introduction to PEP Loans

Pep loans provide short-term loans with fair interest rates through Capfin as the credit provider. Capfin offers loans of up to R50 000, depending on an individual’s affordability assessment results. Pep loans are based on an individual’s credit profile and payment behavior. As a National Credit Regulator registered credit provider, Capfin provides finance to people who can comfortably make monthly payments. This has expanded its market significantly, as it has made finance more accessible to individuals who do not have internet access. They can walk into a Pep Store and apply for a loan.

Documents Needed for Application 

  • A valid South African identification card 
  • Three most recent pay slips
  • Valid bank account details 
  • A valid phone number 

In order to qualify for a Pep loan, there is a set criterion that you have to meet. These requirements are put in place to ensure that the borrower pays back the loan as stipulated in their contract. These requirements include:

  1. Applicants should be legal South African citizens. 
  2. Your work status must be permanent and active. Meaning, you should be earning a monthly based salary from a permanent employer.
  3. You must be old enough to enter a contract, at least 18 years of age. 
  4. The bank account that the loan money will be credited to must be your own bank account.

Pep Loan Interests 

Pep loan interest rates are often customized for individuals. There are multiple factors that influence Pep loan’s interest rates. Here is a couple of them:

  1. The interest rate depends on the amount of loan an individual is taking.
  2. The more money you make, the lower your interest rates will be. However, this will depend entirely on other factors.
  3. If you take up their life insurance, credit insurance, or funeral cover, you may lower your interest rate since these insurance covers can ensure that your Pep loan is repaid in totality in the event that you get disabled, lose your job, die, or are incapable of earning an income.

How to Apply for Pep Loan 

Applying for a Pep loan is fairly simple. You have 2 options for the loan application. Essentially, you can either do it online or in-store. The Money Mall has partnered with many credit providers in South Africa to make it easier for South Africans to get online loans much more quickly.

Apply for a Capfin loan at a Pep till point located near you with your documents. Pep will scan your document using their FICA devices and send your loan application to Capfin. 

Capfin will then get back to you within 5 minutes of your loan application submission. A trained Capfin consultant will give you a call to complete the terms of the loan agreement and to further verify the information you provided from you.

You could also SMS the word “Help” to 43679, and a trained Capfin consultant will call you. Alternatively, you can dial the USSD *120*5566#.

If your loan application is approved, you can expect loan disbursement within the next 48 hours. The loan will be credited to your bank account directly.

Understanding the PEP Loan

Typically, a Pep loan of R1,000.00 means that you pay under R300 monthly installments. This means that your final loan repayment would be about R1,200.00. It offers a flexible loan repayment period of between 6 to 12 months, depending on your loan.

The monthly installment repayments are made by debit order. All in all, your Pep loan terms will depend largely on your application profile. Capfin ensures that their loans are tailored to suit your affordability and unique financial needs. With this, South Africans can rest easy knowing that they will be able to sort out any financial emergencies that might crop up.

You may need to cancel taking money using a debit order. It is your every-month responsibility to ensure that there are enough funds in your bank account, on your loan repayment date, until you make your last installment. It is also critical that you keenly go through your loan procedure. You should also read the terms of the Capfin loan when applying for a loan at Pep Stores. Signing the form means you agree to the terms and conditions established.

Pep Loans for Blacklisted 

Pep loans are unsecured loans that individuals qualify for with credit scores or ratings. A responsible borrower with good credit history has a higher chance of getting loan approvals. This is mainly because the credit provider wouldn’t want to risk offering you a loan that you may not afford.

Pep loans have a product for the blacklisted, referred to as Pep Loans for Blacklisted. If you are blacklisted in South Africa, getting a loan from the bank and other financial institutions may not be easy. Pep loans for the blacklisted are specifically designed for blacklisted South African borrowers. Even though the interest rates for these loans are usually considerably higher than traditional bank loans, the approval process is a lot easier.

Backed by 5 insurance companies, the loan application process for blacklisted borrowers is simple. Upon submitting your application, it will pass through a detailed evaluation process, where trained pep loan consultants will verify all the information you provided before your loan is declined or approved.

How Much Can You Borrow From Pep Loans if You Are Blacklisted?

Designed to aid blacklisted borrowers, successful applicants can get funds of up to R50 000. Whether you need a large business loan or a small personal loan, pep loans for the blacklisted can get you the funds you need.

What If You Do Not Have a Good Credit Score?

Getting a traditional loan from a bank may not be possible if you do not have a good credit score. But that does not mean you are completely out of luck as there are other alternatives still available for you, like pep loans. You may get a loan approval with Pep loans even if you have a bad credit rating, depending on your credit history. If your monthly payments were good or are working on improving your credit score, then you might have a shot at getting a pep loan. These loans can offer you the funding you need if your credit rating is poor or non-existent.

Will I find Short Term Loans at Pep Stores?

Yes. In fact, it may be difficult to find any other loan type at Pep. These credit providers are known to offer short-term loans only. Short-term loans enable lenders to achieve a fast loan application process and lend money to borrowers without delays. If you need large funds, Pep loans may not be the right option. For instance, if you want to buy a house or start a business. Pep loans are ideal if you need a small amount of money that can be paid in a couple of years tops.

Is There an Option to Get Payday Loans at Pep?

Payday loans are not available at Pep. However, there is a loan term that you may get into account. You may select a small sum of money to repay in, say, 6 months. The interest payable for such loans has to be agreed upon. While the interest rates for loans paid within a year are charged annually, the interest rates for shorter terms loans are charged monthly. Due to this, a 6 monthly loan rate is different. That said, your financial situation at the time of the PEP loan application will significantly influence your decision on what’s better for you.

Can I Take Two Pep Loans?

With Capfin credit provider, you may take a second loan only if you have finished servicing your existing one.

Pep Loan gives you the freedom to use your loan money however you please. Whether you need to pay school fees, renovate your home, make a big purchase, or take a trip, Capfin loans may offer the ideal solution for your financial needs.


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Job is a seasoned writer with a good understanding of the emerging markets, Africa to be specific.