Loan repayments in South Africa use a standard amortisation formula: M = P × [r(1+r)^n] / [(1+r)^n - 1], where P is the principal, r is the monthly interest rate (annual rate ÷ 12), and n is the number of monthly payments. The NCA requires lenders to disclose the total cost of credit including all fees and interest.

An amortisation schedule shows each monthly payment broken down into principal and interest components. In early months, most of your payment goes to interest. As the loan progresses, a greater portion goes to reducing the principal. This is important for understanding how much equity you build over time.

Yes. Making additional payments towards your loan principal reduces the outstanding balance and shortens your loan term. Most South African lenders allow early settlement, though some may charge an early termination fee (typically up to 3 months' interest under the NCA). Check your loan agreement.

Under the National Credit Act (NCA), interest rates are capped. For personal loans, the maximum is the repo rate × 2.2 + 20% per annum. For home loans it's the repo rate × 2.2 + 5%. For credit cards it's the repo rate × 2.2 + 10%. Use our calculator to check what your repayments should be.