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R120 000 Loans in South Africa

Compare R120 000 Loan Lenders and Make a Better Loan Decision.

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*Representative example: Estimated repayments of a loan of R30 000 over 36 months at a maximum interest rate, including fees of 27.5% APR would be R1232.82 per month. BetterLoans is an online loan broker and not a lender. Our service is free, and we work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant’s credit score and other factors at the lender’s discretion. Loan amount R500 – R350 000. Repayment terms can range from 3 – 72 months. The minimum APR is 5%, and the maximum APR is 60%.

Some Lenders We Compare

Table of Content

Navigating the world of R120 000 loans in South Africa is challenging, especially with various financial institutions offering multiple products. This comprehensive guide will help you understand the different types of loans available, evaluate interest rates, compare loan terms, and manage your loan effectively. Make the best decision to suit your financial needs with thorough research and comparison.

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Types of R120 000 Loans Available in South Africa

There are several types of R120 000 loans available in South Africa, including:

  • Personal loans: These are used for various purposes, such as home renovations, vacations, or large purchases
  • Home improvement loans: Designed specifically for home renovations, repairs, or upgrades
  • Debt consolidation loans: Consolidate multiple high-interest debts into a single, lower-interest loan
  • Vehicle Financing: Used to purchase a car, motorcycle, or other vehicles

Evaluating Interest Rates and Loan Terms 

When seeking a R120 000 cash loan in South Africa, it’s essential to understand the importance of interest rates and loan terms. These factors play a significant role in determining the overall cost of the loan and the affordability of the monthly repayments. By carefully evaluating and comparing these elements, borrowers select a loan product that best suits their financial situation.

Interest Rates: 

Interest rates are crucial to any loan, as they directly affect the total amount you pay over the loan term. Remember that a lower interest rate typically means lower overall costs. Still, it’s important to factor in other fees and charges associated with the loan.

Loan Terms

Loan terms refer to the time the borrower has to repay the loan, typically in months or years. Repayment terms for R120 000 loans in South Africa range from 6 months to 84 months. The loan term influences the amount of interest paid and the size of the monthly repayments.

  • Shorter Loan Terms: With a shorter loan term, borrowers make larger monthly repayments but pay less interest over the loan’s life. This results in a quicker loan payoff and overall cost savings.
  • Longer Loan Terms: Longer loan terms mean smaller monthly repayments, making the loan more affordable in the short term. However, this also means paying more interest over time, increasing the total cost of the loan.

Loan Comparison Service 

Utilize an online loan comparison service like BetterLoans to help evaluate and compare different loan offers. BetterLoans provides valuable information about interest rates, loan terms, initiation fees, and other factors, enabling borrowers to make informed decisions. Be sure to compare multiple lenders to find the most competitive rates and terms for your financial situation.

By evaluating interest rates and loan terms thoroughly, borrowers select the most suitable and cost-effective R120 000 loan product in South Africa. This careful consideration ensures manageable monthly loan repayments and minimal financial strain throughout the loan term.

Eligibility Requirements to Apply for R120 000 Loans 

Common eligibility criteria to find out if your qualify for a loan include:

  • Being at least 18 years old
  • Having a steady income
  • An active South African bank account
  • Low debt-to-income ratio
  • A good credit score

Individual lenders may have additional or specific requirements, so reviewing the eligibility criteria is essential before applying.

Application Process for R120 000 Loans

To apply for a loan of R120 000, you will need to provide:

  • Your ID or passport
  • Proof of income
  • Bank statements
  • Proof of residence

Depending on the lender, the application process may involve an online application form, phone interviews, or in-person meetings. Approval timelines range from a few hours to several days.

Top Lenders for R120 000 Loans in South Africa

Research and compare reputable lenders to find the best R120 000 loan for your needs. Consider factors such as interest rates, repayment terms, and customer reviews. Popular lenders are below.

Nedbank Personal Loan

Nedbank Personal Loan

3.2
  • Loan amount: R2 000 - R300 000
  • Loan term: 6 - 72 months
  • Annual Interest Rate: 11.25% - 28.75%
  • Initiation fee: Up to R1 207
  • Monthly service fee: R69
Standard Bank Personal Loan

Standard Bank Personal Loan

3.2
  • Loan amount: R3 000 - R300 000
  • Loan term: 12 - 72 months
  • Annual Interest Rate: 7.75% - 25.75%
  • Initiation fee: R1 207
  • Monthly service fee: R69
Old Mutual Personal Loan

Old Mutual Personal Loan

2.9
  • Loan amount: R2 000 - R250 000
  • Loan term: 3 - 72 months
  • Annual Interest Rate: Up to 27.25%
  • Initiation fee: R165 + 10% of the loan amount. Max. R1 050
  • Monthly service fee: R60
WesBank Personal Loan

WesBank Personal Loan

2.8
  • Loan amount: R5 000 - R300 000
  • Loan term: 24 - 72 months
  • Annual Interest Rate: 18.35% - 28.75%
  • Initiation fee: R69
  • Monthly service fee: Up to R1 207
FNB Personal Loan

FNB Personal Loan

3.2
  • Loan amount: Up to R300 000
  • Loan term: 1 - 60 months
  • Annual Interest Rate: 17% - 28.75%
  • Initiation fee: Up to R1 207
  • Monthly service fee: R69
Capitec Bank Personal Loan

Capitec Bank Personal Loan

3.2
  • Loan amount: R1 000 - R250 000
  • Loan term: 7 - 84 months
  • Annual Interest Rate: 13.25% - 28.75%
  • Initiation fee: R1 207
  • Monthly service fee: R69
African Bank Personal Loan

African Bank Personal Loan

3
  • Loan amount: R2 000 - R350 000
  • Loan term: 7 - 72 months
  • Annual Interest Rate: 12% - 24.5%
  • Initiation fee: R1 197
  • Monthly service fee: R69
Absa Personal Loan

Absa Personal Loan

3
  • Loan amount: R3 000 - R300 000
  • Loan term: 12 - 84 months
  • Annual Interest Rate: 11% - 28%
  • Initiation fee: Up to R1 207
  • Monthly service fee: R69
Sanlam Personal Loan

Sanlam Personal Loan

2.8
  • Loan amount: R5 000 - R300 000
  • Loan term: 12 - 72 months
  • Annual Interest Rate: 16% - 28.75%
  • Initiation fee: n/a
  • Monthly service fee: R69
Capfin Personal Loan

Capfin Personal Loan

2.8
  • Loan amount: R8 500 - R50 000
  • Loan term: 12 months
  • Annual Interest Rate: Up to 28.75%
  • Initiation fee: R69
  • Monthly service fee: R535
Finchoice Personal Loan

Finchoice Personal Loan

2.6
  • Loan amount: Up to R40 000
  • Loan term: 6 - 24 months
  • Annual Interest Rate: n/a
  • Initiation fee: n/a
  • Monthly service fee: n/a
DirectAxis Personal Loan

DirectAxis Personal Loan

2.5
  • Loan amount: R5 000 - R300 000
  • Loan term: 24 - 72 months
  • Annual Interest Rate: Up to 28.75%
  • Initiation fee: Up to R1 207
  • Monthly service fee: R69
RCS Personal Loan

RCS Personal Loan

2.4
  • Loan amount: R1 000 - R250 000
  • Loan term: 12 - 60 months
  • Annual Interest Rate: 15% - 28.75%
  • Initiation fee: R1 207
  • Monthly service fee: R69
Letsatsi Finance Personal Loan

Letsatsi Finance Personal Loan

2.4
  • Loan amount: R1 000 - R50 000
  • Loan term: 7 - 13 months
  • Annual Interest Rate: Up to 28.75%
  • Initiation fee: n/a
  • Monthly service fee: n/a

Personal Loan Calculator

Calculate how much loan you should consider taking so that you can afford the monthly repayments.

Alternatives to R120 000 Loans 

  • Smaller Personal Loans: Instead of taking out a large R120 000 loan, consider applying for a smaller personal loan that covers only the immediate financial requirements. This option results in lower monthly repayments and decreased interest costs over the loan term, easing the financial burden.
  • Credit Cards: Credit cards offer a revolving line of credit that can be used for various purposes. Some credit card providers offer promotional interest rates or interest-free periods for new cardholders, making this option attractive for short-term financing needs. However, it’s essential to manage credit card debt carefully, as high-interest rates easily lead to mounting debt if not paid off promptly.
  • Overdraft Facilities: An overdraft facility is an extension of credit from a bank, allowing the account holder to withdraw more funds than are available in their account. This provides temporary financial relief in emergencies, but high-interest rates and fees may apply. Read the terms and conditions carefully and repay the borrowed loan amount as quickly as possible to minimize costs.
  • Peer-to-Peer Lending: Peer-to-peer (P2P) lending platforms connect individual borrowers and lenders, offering a more flexible and often more cost-effective alternative to traditional bank loans. Interest rates and terms vary, but P2P lending is a viable option for those with good credit seeking competitive loan products.
  • Borrowing from Friends or Family: In some cases, borrowing money from friends or family members is a suitable alternative to taking out a R120 000 loan. This approach may offer more flexible repayment terms and lower (or no) interest rates. However, it’s crucial to establish clear terms and conditions and consider the potential impact on personal relationships.
  • Government Grants or Subsidies: Depending on your circumstances and the intended use of the funds, you may be eligible for government grants, subsidies, or low-interest loan programs. These financial aid options can be more affordable than traditional loans, so research available options before committing to a loan.
  • Savings and Investments: If feasible, consider tapping into your savings or liquidating investments to cover your financial needs. This approach helps you avoid taking on debt and accumulating interest costs. However, it’s essential to weigh the potential loss of investment returns against the cost of a loan before deciding.

By exploring alternatives to R120 000 loans, borrowers assess the most suitable financial solution for their unique situation. Considering different options helps ensure manageable repayments and minimizes the potential financial strain associated with borrowing.

Tips for Successfully Managing Your R120 000

Loan To manage your loan effectively, create a repayment plan and budget to track expenses. Avoid taking on additional debt and communicate with your lender if you face repayment difficulties.

Conclusion

When considering a R120 000 loan in South Africa, it’s crucial to research, compare, and understand the various loan options available. By taking a responsible approach to borrowing and following the advice in this guide, you will make better decisions for your financial situation.

Frequently Asked Quetions (FAQ)

Approval times may vary depending on the lender. Still, many institutions offer approval within a few hours to a couple of days. Some even provide same-day approval for eligible applicants.

While having a good credit score increases your chances of approval, some lenders offer loans to individuals with bad credit. However, interest rates may be higher, and additional requirements might apply.

Repayment terms for R120 000 loans typically range from 6 to 84 months. Lenders often allow borrowers to choose the repayment period, but remember that a shorter term may lead to higher monthly payments. In comparison, a longer term results in higher total interest costs.

Fees vary among lenders, but common fees include loan origination fees, administration fees, and early repayment fees. It’s essential to inquire about any fees before applying to understand the total cost of the loan.

Compare loan offers by evaluating interest rates, repayment terms, fees, and eligibility requirements. Additionally, consider the lender’s reputation, customer service, and any unique features or benefits they offer.

Yes, personal loans are typically used for a variety of purposes, including education or medical expenses, as long as the lender approves the intended use.

Most personal loans are unsecured, meaning you don’t need to provide collateral. However, some lenders may require a guarantor or collateral, depending on your credit score, financial stability, or the loan type.

If you fail to repay the loan, you may incur additional fees, penalties, and damage to your credit score. The lender may also take legal action or initiate collection efforts. It’s crucial to communicate with your lender and explore alternative repayment options if you’re struggling with repayment.

Many lenders offer online loan applications, making applying convenient and straightforward. Some may require phone or in-person interactions, so check the lender’s application process before applying.

There might be government-sponsored programs or special offers available, depending on your circumstances and the purpose of the loan. Research and inquire about any such programs before applying for a R120 000 loan.

Picture of Foli Raheem
Foli Raheem

Foli has an MSc. Economics degree, and has been active in South Africa lending space for years. Whenever he is not writing, you will find him building websites.