F
Loans
Fixed Interest Rate
An interest rate that doesn't move for the entire loan term. Your payment stays the same whether the repo rate goes up or down — that's your security. The tradeoff: if rates drop, you don't benefit. But if they spike, you're protected.
Usage Examples
"Bongani locked in a 15% fixed rate on his R60,000 Nedbank personal loan for 48 months. His payment: R1,650 monthly. Two years later the repo rate dropped and rates everywhere fell to 12%. Bongani's 15% didn't budge — he missed out."
"Zanele got offered a choice: 17% fixed or prime + 2.5% floating on a home loan. She picked fixed. Six months later the repo rate jumped 3%, and floating rates hit 16.5%. But her fixed payment stayed locked. Lekker."
"Thandi took a 20% fixed-rate personal loan from Wonga — short-term, R15,000, 12 months. Sure, it was hectic, but she knew exactly what she owed and when it'd be done. No surprises."