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Loans
Loan Term
How long you've got to pay back the loan — measured in months. Longer terms mean smaller monthly payments but way more total interest. A R50,000 loan at 20% over 24 months costs less in total interest than the same loan over 60 months.
Usage Examples
"Bongani chose a 48-month term for his R50,000 Capitec loan instead of 36 months. Monthly payment dropped from R1,620 to R1,410. But over four years instead of three, he paid roughly R8,000 more in total interest. The monthly relief cost him long-term."
"Thandi's first loan offer was 60 months at R2,000/month. She negotiated down to 48 months at R2,380/month. The extra R380 monthly hurt, but she paid off the loan four years faster and saved thousands in interest — worth it."
"Sipho took a 72-month vehicle finance deal so his monthly payment was only R1,200. Everyone told him he was silly for borrowing over six years. But R1,200 was what he could afford; 48 months would've been R1,600 and he'd have struggled."