Acceptance rate is the number of customers, viewed as a percentage, out of all applicants, who have had their application approved. For instance, if out of 100 applicants, 75 have their applications accepted, this will give the lender an acceptance rate of 75%.


An arrangement fee is a fee which lenders could possibly charge you for the money it costs to process your application and set up the loan agreement.

For more information on charges, please take a look at our information on everything you need to know about incurring possible Payments and Charges.


A Court Judgement, also abbreviated to the term CJ, is an order that a county court can issue to someone who has repeatedly failed to pay their outstanding debt. If someone has an unsettled CJ that hasn’t been paid off or settled, then this will severely impact their credit file and their ability to secure any credit in the future.


Your credit file is all the information that Credit Reference Agencies (CRA’s) (such as Experian and Equifax) can collect about your financial history from financial institutions and public records. Your credit file is used by credit lenders to access how likely you are to repay your borrowed credit back responsibly.


Debt is the amount of credit that you have borrowed and are yet to pay back, your outstanding debts.


Debt consolidation is the process of transferring all of your multiple existing debts into one singular, generally larger loan.


A default or defaulting on a loan is the failure to keep up with your loan repayments regularly. Effectively, if you are defaulting on your loan repayments, then you’re failing to pay back the debts you owe, which can have some significant implications.


An Early Redemption Charge is a fee you could be charged with if you wish to repay your loan back earlier that your final settlement date. This charge to cover the amount of interest that the lender will have lost, due to you settling your loan or making your repayments early.


A fixed rate will imply a rate of interest which will not fluctuate with the changes to the Reserve Bank base rate.


Flat rate refers to a payment or charge which will be the same, regardless of the individual case or circumstance.


A lender refers to the loan company of which you are borrowing the credit from.


A loan agreement is a contract regarding the terms and conditions of your loan and the agreement between you and your lender. Your loan agreement will document things such as:

  • Total amount repayable
  • Information on fees and charges
  • Your rate of interest


Long-term loans, are opposed to short-term loans and refer to the duration of your loan and to two separate and very different loan products.


Monthly instalments are the monthly repayments borrowers make in order to pay off their debt each month. This will include things such as loan amount and any fees or interest you make have incurred.


A payday loan is a form of short-term credit in which you generally borrow a small amount of money which is then made repayable in full on your next payday.


Qualifying criteria implies the eligibility requirements an applicant must provide in order for their application to be approved by a lender. Generally, these will include things such as:

  • Being over 18 years of age
  • In full-time employment
  • Being a resident of the SA
  • Holding a valid SA bank account


Any lender or credit provider that offers regulated products must adhere to the guidelines, and in failing to do so, the consumer of that product has the right to go to the Financial Ombudsman Service and make a claim.


A repayment schedule is an agreement which is established between a lender and a borrower which documents when, how much and over what time frame the borrower is willing to make and agrees to make their repayments.


A rollover is an extension or even a transfer of an existing loan or debt to a new arrangement with the same lender. With a rollover, the lender may be able to extend the duration of your loan but may charge you a higher rate of interest for that pleasure.


A secured loan refers to a loan in which a borrower secures their loan against a valuable asset such as their home or additional property. In the event that the borrower cannot repay the secured loan, the lender is able to repossess the asset in order to pay for the outstanding loan balance.

The most common type of secured loan is generally a mortgage, but you can acquire secured loans for other reasons rather than just to purchase the property.


A loan term refers to the amount of time you borrow an amount of credit for.


Total Amount Repayable or TAR is the total amount of the loan that you will have to pay, which is inclusive of things such as interest and any other charges or fees you may or have accumulated over your loan term.


An unsecured loan is a loan that does not require the borrower to secure the loan against an asset as security. Unsecured loans generally are for less substantial amounts of credit than secured loans and the most a borrower without a secured loan will be able to borrow is usually anything up to R100,000, which will also be dependent on credit history.

Generally, most short-term and personal loan products are unsecured loans and do not require you to secure an asset against them in order to receive your loan. However, if you do have a less than favourable looking credit report you can opt to secure your loan or to get a guarantor for your loan in order to provide further security and reassurance to lenders.

Recent Posts

Start typing and press Enter to search

debt consolidation loan