Payday loans in South Africa: what they cost and how to compare

“Payday loan” is everyday language, not a legal term. It usually means a small loan you repay on or soon after your next salary date. The National Credit Act calls it short-term credit: a loan of up to R8 000 repaid within six months. Lenders on our list offer R500 to R8 000 over 7 to 180 days where they publish the term.

• Payday loan: one repayment on or soon after payday.
• Short-term loan: the same product, but repaid in instalments over a few months.
• Cash loan: a loose name for either, and sometimes for larger personal loans. Check the amount and term, not the label.

All of them are expensive per rand borrowed, which is why the shortest term you can manage usually costs the least.

See amounts and terms side by side on the online loans list, or open a lender card such as Creditbar (7 to 61 days) or Century (up to 180 days).

For short-term credit the National Credit Regulations set ceilings on three charges: interest, a once-off initiation fee and a monthly service fee. Credit life insurance, if you take it, is extra. The exact ceilings change, so read the current table on the NCR website.

Century publishes the three charges on its site (creditza.co.za, checked 11 Oct 2026): interest 0.16% per day for new clients (0.1% for repeat clients), an initiation fee of 16.5% of the first R1 000 plus 10% of the amount above R1 000, never more than 15% of the loan (VAT is added on top) and a service fee of R69 per month. Century’s own pages give different values for the term and rate in places, so rely on the figures in your pre-agreement statement.

Before you sign, the lender must give you a pre-agreement statement and quotation with the total you will repay (section 92 of the Act).

Check the fees of each lender on the online loans list and open the card first: Century shows its fees, while Creditbar and Crediwise do not publish theirs.

The lenders on the list are NCR registered (register checks of 7 and 27 Oct 2026). Three to start with:

• Creditbar: R500 to R5 000 for 7 to 61 days, repaid by DebiCheck debit order or manual EFT, early repayment without penalties.
• Crediwise: up to R8 000, and it says it can pay to an eWallet instantly on any day (lender’s own statement; see eWallet loans).
• Century: up to R8 000 for up to 180 days, with interest, initiation and service fees published.

Wonga sets a first-loan limit: new customers can apply for up to R5 000 and repay over up to 3 months; existing customers for up to R8 000 over up to 6 months (wonga.co.za, 28 Oct 2026). Interest is charged per day, so a shorter period costs less. Lenders with similar terms are compared in loans like Wonga.

Applying costs nothing and takes place on the lender’s own website. Read the pre-agreement statement before you accept.

More lenders, with amounts, terms and NCR numbers, are on the online loans list: pick your amount and days and compare.

Example on Century’s published figures for a new client, repaid in one payment after 30 days. These are indicative sums, not a quote.

VAT on the initiation fee adds about R23 and R55. So R1 000 for one month costs roughly R270 to R290 in fees and interest, about 27% to 29% of what you borrowed, while R3 000 costs about 19% to 21%.

If one month is too short, the same fees spread differently over longer terms: see loans over 1 to 6 months for R3 000 at one, three and six months.

Borrow the smallest amount for the shortest term your budget allows, then compare the total on the pre-agreement statement of each lender on the online loans list.

A registered lender must assess affordability before it lends (sections 80 and 81 of the Act), so expect these checks:

• Identity and contact: South African ID and a cellphone number, age 18 or older.
• Income and bank account: the last three months of bank statements. Century asks for statements showing three salary deposits; Primeloans also asks for a payslip and proof of residence.
• Your credit record: Creditbar says bad credit does not automatically disqualify you and that a credit check is part of the assessment (checked 11 Oct 2026). Other lenders set their own rules.
• Repayment date: repayment usually goes off by DebiCheck debit order, which you confirm with your bank. Pick a date after your salary lands.

Not sure what your record shows? Read how to check your credit score, and for listings and judgments see loans for blacklisted people.

Have your ID, statements and phone ready, then compare lenders on the online loans list.

Walk away if a “lender”:

• asks for a fee, “insurance” or “release payment” before it pays out;
• is not in the NCR register of credit providers (search by name or registration number);
• asks for your banking PIN, password or OTP;
• promises a loan to everyone or pushes you to sign today.

Our guide to loan sharks shows how to tell a legit lender from a loan shark, what a mashonisa may not do and how to report one.

Before a payday loan, try cheaper routes: ask the creditor for a payment arrangement, ask your employer about a salary advance, or look at a bank overdraft or personal loan, which usually cost less per rand. If several debts are the problem, an NCR-registered debt counsellor can help.

If a payday loan is still the right call, Creditbar and Crediwise are quick places to check terms first.

Ready to borrow? Compare lenders by total cost on the online loans list and apply online in a few minutes. The lender decides after its own checks.