Capitec Personal Loan Review: Rates, Fees, Requirements

Capitec Personal Loan in 30 seconds

It is a bank loan from Capitec. You borrow up to R500,000 and repay in fixed monthly amounts over 12 to 84 months.

Your interest rate is personal to you and starts from 12.50% a year.

On top of the interest, you pay a R1,207.50 once-off fee, R69 a month, and credit insurance.

Key facts

• Amount: up to R500,000
• Repayment: 12 to 84 months
• Rate: from 12.50% a year, personal to you
• Fees: R1,207.50 once-off, R69 a month
• Insurance: required, charged monthly
• Apply: app, online, phone or branch

Is this loan for you?

It may suit you if you:

• Get a salary and want the same payment every month.
• Earn from your own business or from several jobs (see the self-employed section).
• Want to combine several loans into one. Capitec lists this as a use.
• Want to choose between the lowest monthly payment and the lowest rate. Capitec says you choose.

It may be harder if you:

• Are self-employed and earn under R5,000 a month, or for less than 6 months.
• Need a small, short loan. In Capitec’s examples these carry the highest maximum APR (up to 48.27%).

How to read these numbers

• Interest rate: what the bank charges you to borrow.
• Maximum APR: a yearly rate that includes fees. It shows more of the real cost.
• The lowest rate is for the lowest-risk profiles. The maximum APR shows the other end.
• The two fees are fixed amounts, so they weigh more on a small loan.

What documents do I need?

Capitec says you must be 18 or older. For a standard application you need:

• Your original South African ID
• Your latest salary slip
• A bank statement with your last 3 salary deposits (only if your salary is not paid into a Capitec account)

Capitec bases your offer on your credit history, your income and your expenses.

Can I apply if I am self-employed?

Yes. Capitec has a separate route for people who are self-employed or have more than one income. It covers a personal loan, a credit card or a revolving facility, for personal use, up to R500,000.

You need:

• To be 18 or older.
• Income of more than R5,000 a month for at least 6 months.

Documents depend on how you earn:

• Informal business or sole trader: proof of purchases and sales (invoices, receipts or statements).
• Registered business owner: 6 months of business bank statements, an accountant’s letter, and proof of purchases or trade.
• Salary earner on this route: your latest 3 salary slips.
• Freelancer (for example Uber, food delivery or Airbnb): Capitec says the documents are to be confirmed and could include a contract, a letter, invoices or proof of work.

If your income is not paid into a Capitec account: bring your last 6 months of bank statements showing all your income. The statement date stamp must not be older than 7 days when you apply.

Good to know: this credit is for personal use, not for business funding. You can choose your own repayment date.

What does the insurance cover?

Capitec says credit insurance is required on its personal loans.

• The cost is a rand amount for every R1,000 you still owe, each month. As you pay down the loan, the cost falls.
• Cover for death and disability starts immediately, with no paperwork to apply.
• It is available up to age 65.

If this happens	Capitec says it pays
Death	The full amount you still owe
Permanent disability	The full amount you still owe
Temporary disability	Up to 12 instalments
Unemployment, unable to earn (not disability) or retrenchment	Up to 24 repayments (3-month wait for retrenchment or termination of employment)

To claim: tell Capitec within 12 months of the event, and send the documents within 3 months. All benefits follow the policy’s terms and exclusions.

How does Capitec decide?

Capitec says your offer depends on what you can afford and on your credit profile. A guide on its website (published in 2017) explains what lenders usually look at:

• What you can afford: your payslip shows your take-home pay. If your income changes (commission or overtime), lenders average it, usually over 3 to 6 months. Your bank statement shows what you already owe.
• Your job: how stable it is and how long you have been there.
• Your credit record: whether you paid past loans on time.

This guide is general and dates from 2017. Confirm current rules with Capitec.

Watch out for

• The starting rate is not what most people get. Check the maximum APR.
• Small, short loans have the highest maximum APR.
• Insurance is required and adds to your monthly cost.
• The self-employed route needs 6 months of income above R5,000 a month.
• Capitec’s page does not state early settlement terms or a minimum loan amount. Read your credit agreement.

How to apply

Capitec says you can:

1. Get an estimate online.
2. Apply in the Capitec app or online.
3. Call 0860 66 77 89.
4. Visit a branch.

Capitec Bank is an authorised financial services provider (FSP 46669) and a registered credit provider (NCRCP13).