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Capitec now offers R230 000 unsecured loan

This is substantially higher than any of the offerings at South Africa’s four largest banks.

PRETORIA – Capitec has increased its unsecured loans to R230 000 from R150 000.

According to the bank’s online newsletter, it has increased its credit offering so that its clients “can get the cash they need to afford the things they really want”.

In January this year CEO Riaan Stassen said he hoped the bank’s branches in higher LSM areas will bring them closer to the goal where a client who can afford it, will be able to take out a high-value unsecured loan within 20 minutes.

The highest value it offered in January was R150 000.

Stassen said: “As far as I am concerned if someone needs R1m to buy a car and can afford it, I don’t see why he can’t go into a Capitec branch and get that loan in 20 minutes.”

The new maximum amount offered represents an increase of 53%.

The R230 000 is available for a term of between one and 84 months.

This is substantially higher than any of the offerings at South Africa’s four largest banks or the unsecured player African Bank.

Absa (JSE:ASA) offers personal loans between R3 000 and R150 000 over a term of 12 to 84 months. At Standard Bank (JSE:SBK) you can qualify for a maximum loan of R120 000 if you earn R8 000 a month or more. FNB’s biggest unsecured loan on offer is also R150 000 and the maximum term is 60 months. Nedbank (JSE:NED) offers a R120 000 loan, also over 60 months. African Bank’s biggest unsecured loan on offer is for R180 000 for over 84 months. (See table below)

As an example of what these unsecured loans will cost on a monthly basis, Moneyweb used FNB’s online loan calculator. The monthly repayment for a R150 000 loan over 60 months comes to R5472.58.

This is made up of (according to the calculator) the capital instalment of R4761.28, an initiation fee of R17.10, a service fee of R34.20 and the Customer Protection Plan of R660. Over 60 months the total paid for the R150 000 loan amounts to R328 345.

According to a table on Capitec’s website (see below) the monthly repayment for a R230 000 loan could be between R4 984 over 84 months at an interest rate of 18.5% or R5 939 over 84 months at an interest rate of 25.2%. The bank clearly states that these are only examples and the actual rate will be based on the individual’s credit profile and affordability.
Taking the repayment of R5 939 you will over 84 months pay R498 913 in total for your R230 000 loan.

In its online newsletter sent out to customers Capitec says that it ran a series of polls on its social media platforms to determine what the Capitec community thinks of credit and what kind of decisions they are making with their money.

According to this research 38% of respondents said credit was a necessary evil, 33% said it was a burden, 22% said it was a boost and 7% said it was a life improver.

A total of 77% said that they would use the R230 000 in unsecured credit to start a small business. Only 10% would buy a car and 3% would buy or renovate their house.

In response to a question on how the individual affords things in life that he or she really wants 62% said that they don’t buy what they can’t afford. About 32% said that they save up for the item and only 6% indicated that they would buy it on credit so that they can have the item immediately.

Table 1


Maximum amount you can qualify for

Maximum term


R150 000

84 months

Standard Bank

R120 000

Personal Term Loan for 42 months or Revolving Credit Plan where once you’ve paid 15% you can loan up to the original amount again.


R120 000

60 months


R150 000

60 months

African Bank

R180 000

84 months


R230 000

84 months


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