Financial Glossary

Annual Percentage Rate (APR): All interest and charges payable on the loan, as a percentage of the total amount which was borrowed.


Collateral: Personal belongings and assets such as houses, cars, and savings deposits which are offered as a guarantee that the loan will be paid. Short’-term loans do not always require collateral.


Credit Agency: An organisation which is responsible for monitoring the credit history of all consumers and loan applicants. Credit agencies also record which applicants have been blacklisted.


Finance Charges: The total amount payable in interest and other charges in order for credit or a loan to be issued.


Fixed Interest Rate: An interest rate that does not change during the period of the loan.


Index: A measure of the economy used by banks and credit providers to determine changes in variable interest rates.


Interest: A fee that is paid in order to borrow money, calculated as a percentage of the amount borrowed.


Line of Credit: A type of on-going loan with a variable interest rate. This type of loan can be paid off and borrowed against repeatedly without having to apply for a new loan each time.


Note (Promissory Note): A written agreement to repay a loan over a set time at a certain interest rate.


Point: One percent (%) of the loan amount.


Pre-payment Penalty: A penalty which is levied on a borrower who repays a loan too soon – before they loan period has expired.


Prime Rate: The best interest rate charged by lenders on a short-term loan. APRs are calculated as the prime rate plus an extra amount.


Principal: The amount borrowed, excluding interest.


Secured Personal Loan: A personal loan with a fixed interest rate. This type of loan usually requires collateral.


Term: The period in which the loan must be repaid.


Our monthly interest rate is 5%.

Financial implications

Late interest is accumulated on a daily basis for overdue loans. A R57 service fee will be charged for loans exceeding 30 days.

Collections for overdue loans

A) Customers are called & emailed about their overdue loan status and immediate action is taken against them.

B) After 30 days the customer will receive a final letter of demand and are given 10 days to settle the outstanding amount.

C) Customers are handed over to our bad debt department where they will then continue to reclaim the outstanding loans.