Updated 27.01.2023

Best Personal Loans in South Africa in 2023

Although we want to think that the world is turning into a cashless society, we still need some cash to sort out important things in life. Sometimes, whatever you earn may not satisfy your needs and wants, and that is why banks in South Africa provide personal loans to their members. 

Many South Africans sign up for personal loans without having a proper understanding of what that is. This article will delve deeper into personal loans and the best personal loans you can take in South Africa.

Compare the Best Personal Loans in South Africa 2023

Loan CompanyDescriptionAmount RangeRepayment PeriodLinksApply
ABSA Personal Loan

ABSA Loans
  • No matter what your plans are, Absa got a personal loan that suits your needs.
  • Absa offer flexible loan amounts and repayment terms and provide the best interest rate with price guarantee
R250 to R350 00012 to 84 monthsMore InfoApply Now
African Bank Loan

African Bank Loans
  • Borrow from R2000 to R250 000 with fixed repayments over 7 to 72 months
  • Get a low interest rate of 12% on a loan up to R50 000 and repayment terms from 18 to 24 months
R2000 to R250 0007 to 72 monthsMore InfoApply Now
FNB Personal Loan
  • Tailored fixed interest rate from as low as 12.75% per annum
  • Option to take a break from payment in January 
  • No penalty fees if you settle your loan early
Up to R300 000Up to 60 MonthsMore InfoApply Now
Capfin Personal Loan
Capfin Personal Loan
  • Easy application process via SMS or Online
  • No hidden fees and interest rates
  • You have 24/7 access to your Capfin loan account
        R1 000 - R50 0006 - 12 MonthsMore InfoApply Now
        Capitec Personal Loans

        Capitec Bank
        • Whether you need money for your child’s education, home improvement, vehicle purchase, or travel expense, Capitec Personal Loans can give you the needed cash boost to make any of these goals come true
        • Choose between the amount you want, the monthly installment that suits your pocket, or the option that gives you the lowest interest rate
        • Consolidate all your existing loans for easier monthly repayments
        • Manage your credit using the app
        R500 to R250 0001 to 84 monthsMore InfoApply Now
        Boodle Loans

        Boodle Loans
        • Getting a personal loan has never been this easy. Boodle will help you get your loan in the bank quickly.
        • Fill in your details and get your Boodle loan fast within 10 minutes
        R100 to R4 0002 to 32 daysMore InfoApply Now
        Bayport Loans
        Bayport Loans
        • Free access to online statements 24/7
        • Easy to use self-service app available 
        • Short-term unsecured loans are insured in the event of death, disability or retrenchment.
          R1,00 to R250,0002 to 32 daysMore InfoApply Now
          DirectAxis Loans

          DirectAxis Loans
          • DirectAxis Personal Loan offer up to R200 000 is a convenient way to take care of your personal and family needs and goals. 
          • Repayments are fixed at their current interest rate for the full term of your loan.
          • Complete application online, feedback is given quickly and your loaned money could be in your bank account within 48 hours.
          R5 000 to R150 00024 to 72 monthsMore InfoApply Now
          FinChoice Loans

          FinChoice Loans
          • Qualify for up to R8 000 loan. Apply in 3 easy steps.
          • Offers 3 types of personal loan products with varying rates and terms.
          • FinChoice Personal Protection Plan is your cover in case of loss of job, disability or death.
          R8 000 to R40 0006 to 24 monthsMore InfoApply Now
          Old Mutual Personal Loans

          Old Mutual Loans
          • Get a personal loan of up to R200 000 Options to Consolidate your loans.
          • Specify your repayment period and amount according to your needs
          • Apply online in easy steps
          R500 to R200 0003 to to 84 monthsMore InfoApply Now
          Sanlam Personal Loans

          Sanlam Personal Loans
          • Apply for a fixed rate personal loan of up to R200 000 through Sanlam South Africa
          • Tailor your repayment term to suit your budget apply online with some easy steps
          • Qualifying Sanlam Reality members can earn 20% cash back on their loan
          R5 000 to R200 00024 to 72 monthsMore InfoApply Now
          Standard Bank Loans

          Standard Bank Loans
          • Apply for a personal loan with Standard bank from R3000 to R300 000
          • Borrow for periods between 12 to 72 months
          • Easy sign up via the website or via the Standard Bank App
          R3 000 to R300 00012 to 72 monthsMore InfoApply Now
          Unifi Loans

          Unifi Loans
          • Fast, simple personal loans to formally employed people in South Africa
          • Loans can be accessed through our branches in Zambia and Uganda, and online in South Africa
          • Zambian clients can also apply for a Unifi loan via our USSD app or at Pep stores nationwide
          R2000 – R8000 6 MonthsMore InfoApply Now
          Wesbank Personal Loans

          Wesbank Loan
          • Get easily a personal loan from WesBank, offering no hidden costs, very low interest rates and flexible repayment term
          • Choose your own convenient repayment term
          • Customer Protection Plan is included in your Personal Loan repayments
          R5 000 to R150 00024 to 72 monthsMore InfoApply Now
          Woolworths Personal Loans

          • Get a Resolving Personal Loan from Woolworths. With low interest rates and a simple online loan application from Woolworths, getting a personal loan has never been this easy
          • Complete the application form online or apply in-store, receive cash in 48 hours
          • Balance Protection to cover you for death, retrenchment, critical illness and disability
          R2 000 to R70 000160 days to 60 monthsMore InfoApply Now
          Clientele Loans

          • Clientele personal loans feature an approval process that’s quick and convenient. The performs a credit check on their applicants to make sure they can pay the loan on time
          • Quick and convenient approval process
          R5 000 to R150 000365 days to 60 monthsMore InfoApply Now
          FinBond Loans
          FinBond Loans
          • Safe and quick
          • Fixed monthly instalments
          • No security needed
          R 500 to R 20 000Up to 24 MonthsMore InfoApply Now
          Hoopla Loans
          Hoopla Loans
          • 100% free to apply
          • Low repayment between 3 to 60 months
          • High approval rate
          R100 to R250 000Up to 60 MonthsMore InfoApply Now

          What Is A Personal Loan?

          Many banks in South Africa are in the business of loaning out big-ticket assets such as cars and homes. The bank uses the assets as a payment guarantee. So, if you default payment, the bank takes and auctions your assets to recover their money.

          Sometimes may need some little cash to finance a small project or cater for a small occasion. It becomes difficult to gain a personal loan when you don’t have an asset to act as collateral for your loan. Because of this, the banks give you little cash with a high-interest rate.

          Banks in South Africa offer personal loans with fixed interest rates charged annually on the total amount borrowed. That means you pay the same amount of interest from the day you pay your loan to the final day.

          Why Take A Personal Loan?

          Personal loans resemble micro finances. Most personal loans are small loans that do not need security, such as title deeds, houses, or cars. The only time the ban2 needs security comes when you have a poor credit score or have a bad repayment history. This kind of loan involves small amounts of money that range from R 10,000 to R 20,000. The sum gets borrowed over a fixed time that runs from 6 months to 5 years.

          As a borrower, you may use the borrowed money however you have to prove that you can afford to repay according to the stipulated terms and conditions. Otherwise, it is wise to use the money to complete essential projects in your business or home or pay pending bills. At all costs, avoid using the money in extravagant leisure activities that do not generate profits, such as paying for high-end vacations and shopping for unnecessary things.

          So, if you are considering taking a personal loan in South Africa, remember this is not free money, and you will have to repay it. So, use it wisely lest you fall into a debt pit and get a poor credit rating. Also, note that you will pay back a higher amount of money than what you borrowed due to interest charged on the loan and administration fee. Personal loans in South Africa come with high-interest rates because they are unsecured. That means they are riskier to the lending bank since they are unsure whether you will pay back the loan.

          Personal Loan Features

          • Fixed duration of time: Personal loans in South Africa run between 6 months to five years.
          • Fixed interest rates: The interest remains the same throughout the loan period.
          • Set Loan Amount: The amount owed to the bank reduces with each repayment made.
          • Annual percentage interest rate: The annual percentage interest rate shows how much you will pay for your loan. It is the yearly cost of the bank charges.

          Types of Personal Loans

          Before taking a personal loan, you need to know the different types of loans available to you. They include:

          Secured or Unsecured Loan

           Banks offering secured loans need you to tie your asset to your loan. The asset acts as security to your loan, and in case of loan default, the bank seizes your assets (home, car, or jewelry) until the loan gets cleared. Secured loans allow you to take large loan amounts even when you have poor credit history. It also gives you a more extended repayment period which becomes easy to manage.

          They do not tie unsecured loans to any assets and are suitable for South Africans with an incredible credit score. Many South Africans take unsecured loans because it is flexible. It allows you to choose the amount of money you want to borrow for six months-5 years.

          Fixed or Variable Rate

          Some banks offer variable interest, which applies around revolving credit. A fixed, variable rate applies to installment loans. Although your bank may not give you a choice to choose between the two, understand the rate your bank offers and how they work before taking a loan. 

          Guaranteed or Unguaranteed Loan

          Guaranteed loans involve a creditworthiness guarantor and can pay your loan back if you get stranded. Anybody close to you can secure your loan, provided they have a good credit history.

          Guarantor loans are cheaper than payday loans and can enhance your credit ratings if repaid on time. However, getting a willing guarantor is tough, and if you get one, it can mess up your relationship if you cannot pay your loan on time.

          Students Loan

          A student loan helps university or college students to pay for their education through an overdraft. If you have little money in your account, you can still withdraw more for your educational expenses, provided you don’t exceed the limit set by SARS.

          Debt Consolidation

          This is where you use the deposits in your existing account to settle your loan. This saves you from high-interest charges and penalties that arise when you default to paying your loan or settle your payments late.

          Lines of Credit

          This is the type of personal loan you take for general purpose use. They offer the loan at a set credit limit, and you only pay back what you have used within the limit.

          Factors to Consider Before Applying for A Personal Loan

          It is crucial to research loan options offered by various banks in South Africa. After settling for a particular bank, consider several factors before applying for the loan. Enquire whether the personal loan you want to take stands as secured or unsecured

          If it is a secured loan, determine if you will risk your assets for the loan if you cannot pay. If it is unsecured, consider the interest rate the bank charges on the loan, whether it is too high or bearable.

          Determine the amount of money you want to borrow from the bank and if the bank will lend you the total amount. This is crucial because not all banks in South Africa can lend you the amount you want.

          If you are seeking a loan, it means you want to use it in due time. Consider the time duration banks take to process your loan. Some banks are strict and ask for many documents that take a lot of time to verify. If you need the loan urgently, you can choose a bank that processes loans fast.

          How to Get Personal Loans With the Best Interest Rate in South Africa?

          Various factors mainly determine your loan interest. How much you earn determines how much you can borrow and the interest rate on your loan. The higher you earn and repay your loan, the lesser your interest rate. Your credit score also affects your loan’s interest. If You have a poor credit score, most banks will deny you a loan, and the ones you get will charge you high interest.

          Basic Requirements for Personal Loans

          Banks in South Africa ask for some documents before they process your loan. The documents act as an assurance that you can repay your loan. Some of the standard documents required by all banks include:

          • South African ID
          • Recent 12 month stamped payslip or bank statement
          • An existing bank account under your name

          How Personal Loans Work in South Africa

          When you want to take a personal loan, you must follow a few steps that include:

          Comparing Loans

          Banks offer a variety of loans with various benefits and terms and conditions. It is wise to study the different loans offered by banks and even use a personal loan calculator to compare your options.

          Going Through the Bank’s Requirements to Confirm if You Qualify

          After finding the perfect list of banks that suit your budget and circumstances, ensure that you gain all the documents and information needed for applying for the loan. Check if you meet all the bank’s requirements, such as your monthly income, bank statements, and age.

          Approaching the Bank and Making Applications

           If you meet all the bank’s requirements, you can apply with your favorite lender. You can visit the bank’s nearest branch or apply online. However, if you opt for an online application, the bank will still need you to physically submit some original documents such as ID and stamped bank statements to the credit and loans desk.

          Getting Approval and Agreeing to the Bank’s Terms and Conditions

          If the bank approves your application, you must accept the offer. You then agree with the bank on the amount of money you will borrow and the interest rate charged on loan. The agreement also shows the payment duration, which lies between 6 months to 5 years. Once the deal gets made, the bank transfers the borrowed amount into your bank account, which you can withdraw anytime.


          Many banks in South Africa need you to repay your loan off in monthly installments. The amount of money you pay each month depends on the total amount you borrow. In case you default on the monthly payments, the loan attracts additional interest and penalties. So before taking a loan, ensure that you can comfortably afford to repay the loan as stipulated by the bank.

          Personal loans in South Africa work in different ways depending on the choice of bank, loan amount, and reasons for taking the loan. You can decide to go for payday loans which get deducted from monthly deposits in your account. You can take small amounts of money, settle payments in two cycles, or a substantial personal loan that can take you up to 5 years to pay back.

          South African banks With the Best Personal Loans

          To get the best personal loan deal, you need to find the best lender in the market. Here are some of the lenders.

          Sanlam Personal Loans

          Sanlam South Africa offers personal loans up to R 200 000 at a fixed interest rate. Every South African bank with Sanlam bank is eligible for a personal loan depending on their needs and situation. The bank loans you precisely what you can afford to repay. 

          Sanlam allows you to make an online personal loan application. After the online application, you still have to submit your original ID and payment slips to the bank for verification. The bank then checks your credit status, and if approved, they deposit the amount borrowed to your account. Sanlam allows you to borrow any amount from R 5000 to R 200 000, boasting increments of R 1000. 

           If you complete your payment in 12 months, the bank offers you a 20% loan repayment deposited into your savings account. The bank also has a loyalty program, “Sanlam Reality,” that rewards borrowers for looking after their money. The program comes with great discounts on lifestyle, wealth, and health services.

          Standard Bank

          Standard bank South Africa has various personal loans available to all South African citizens that bank with them. The bank allows you to borrow from as low as R 3000 to a maximum of R 300,000 and repayable from 1 year to 7 years. The repayment period depends on the amount of loan that you borrow. They give a small loan a small duration, while huge loans attract several years of repayment.

          Standard Bank charges an annual percentage rate of 24.75% on their loans. The good thing is that if you have some UCount rewards, you can use them to repay part of your loan. The bank gives you various terms for repaying your loan, such as:

          • Term Loan

          Offers personal loans at fixed monthly repayments that are payable in comfortable terms. If you’re a Standard Bank banker, the bank gives you a 2% discount imposed on your interest rate if you bank with them. Another additional 1% gets provided if you shift your salary account to this bank.

          • Revolving Loan

          This allows you to access funds when you need them without reapplying for credit. The banks only need you to repay 15% of the loan taken, and if you don’t bank with Standard Bank, you get a 2% discount on your interest rate when you open an account with the bank. If you open a salary account with the bank, you get an extra 1% benefit. The revolving loan allows you to borrow a minimum of R 8000 and a maximum of R 300000 for either or five years, depending on your borrowed amount.

          • Overdraft

          Standard Bank overdraft facility allows you to access extra funds in times of emergency. Instead of borrowing instant loans from other credit firms. Standard Bank has got you, and you can withdraw as low as R 8000 or as high as R 200 000 regularly. However, you need to have at least a monthly salary of R 8000.

          ABSA Personal Loan

          ABSA personal loans as financial solutions to all South Africans in need of the loan. It offers flexible loans with flexible payment times. You can borrow up to R 350,000 for up to 7 years at an interest rate of 17.5%. Application is available online, but you can also visit your nearest branch and apply from there with the help of the credit officers.

          Pros and Cons of Personal Loans

          Like every loan, personal loans have their fair share of advantages and disadvantages that you need to know.


          Here are some of the benefits that you are likely to enjoy when you take a personal loan.

          • Flexible

          You can take a personal loan and use it as you desire, provided you will pay the loan at the agreed time.

          • High Borrowing Limits

          Many personal loans in South Africa allow borrowers to borrow up to R 350 000 for up to 1-12 years.

          • Zero Collateral

          Many personal loans are unsecured and don’t require collateral. So, you don’t have to risk any of your assets before you’re given the loan.


          There are some of the disadvantages of a personal loan that you need to know.

          • High-Interest Rates

          Personal loans attract high interest because the banks take very high risks of giving you a loan with no guarantee of repayment.

          • Penalties

          Personal loans attract hefty fines when a borrower defaults payments.

          Personal loans are good if taken with a personal growth intention. You can borrow to expand your business, repair your house or office or invest in a good profit. Various banks offer this loan at favorable interest rates and loan limits. Now that you know what personal loans entail and their benefits and disadvantages, you can choose your favorite bank and borrow some money.