Capfin Loan Interest Rates
Capfin is one of the most popular companies for South Africans who are looking to get quick loans. As a responsible borrower, understanding the interest rates associated with a loan is crucial before making a decision. Capfin is popular because they offer loans at affordable rates. In this article, we will take a look at the current Capfin loan interest rates.
What is the Capfin interest rate?
The following table shows the Capfin interest rates for different loan amounts and repayment terms. Please note that these rates are subject to change and may vary based on individual circumstances.
| Loan Amount | Repayment Term | Interest Rate (%) | Monthly installment | Total Interest and fees | Total Repayment amount |
|---|---|---|---|---|---|
| R1,000 | 6 months | 5% per month | R296.97 | R781.84 | R1 781.85 |
| R1,000 | 12 months | 28.75% per annum | R184.57 | R1 214.81 | R2 214.81 |
| R4,000 | 6 months | 5% per month | R951.31 | R1 707.87 | R5 707.87 |
| R4,000 | 12 months | 28.75% | R516.05 | R2 192.55 | R6 192.55 |
| R8,000 | 6 months | 5% per month max | R1 819.38 | R2 916.30 | R10 916.30 |
| R8,000 | 12 months | 28.75% per annum | R955.80 | R3 469.62 | R11 469.62 |
| R10000 | 12 months | 28.75% per annum | R1 174.03 | R4 088.34 | R14 088.34 |
| R20000 | 12 months | 28.75% per annum | R2 161.61 | R5 939.29 | R25 939.29 |
| R30000 | 12 months | 28.75% per annum | R3 148.99 | R7 787.90 | R37 787.90 |
| R40000 | 12 months | 28.75% per annum | R4 136.37 | R9 636.38 | R49 636.38 |
| R50000 | 12 months | 28.75% per annum | R5 123.74 | R11 484.87 | R61 484.87 |
How Capfin Loan Interest Rates Work
Capfin calculates interest rates based on the loan amount, repayment term, and the borrower’s credit profile. The interest rate is fixed for the duration of the loan, ensuring that your monthly repayments remain the same.
One thing that you will notice is that you will notice is that your monthly repayment amount will be lower if you opt for a loan repayment term of 12 months. That’s when compared to a term of 6 months.
As an example, for a loan of R1000, you can expect to pay monthly installments of R296.97 when you choose a term of 6 months. However, should you choose a term of 12 months, you will be expected to pay monthly installments of R184.57 per month for the same amount.
It’s worth noting though that in the long run, you tend to pay more for longer term loans than for shorter terms ones. To go back to our example, you can expect to pay R1 781.85 when you choose a repayment term of 6 months. Meanwhile, when you opt for a repayment term of 12 months, you will pay a total of R2 214.81 at the end of the day.
Another thing to note about Capfin loans is that the 6 months repayment term option is only available up to an amount of R8000. Anything more than this amount, and you will be forced to choose 12 months as your repayment term. That’s reflected in our table above.
Understanding terms
- Loan Amount: The amount borrowed from Capfin.
- Repayment Term: The duration of the loan, ranging from 6 to 24 months.
- Interest Rate : The fixed interest rate applied to the loan.
- Total Interest and fees: The total interest paid over the repayment term. This amount also includes total fees as well as insurance paid
- Total Repayment amount: The total amount repaid, including the loan amount and total interest paid.
Factors Affecting Capfin Loan Interest Rates
Several factors influence the interest rate offered by Capfin, including:
- Your Credit Score: A good credit score can result in a lower interest rate. We noted above that the maximum interest rate is 28.75% per annum. Your interest rate can be lower if you have a good credit score.
- Loan Amount: When you take out a larger loan, you may end up attracting higher interest rates.
- Repayment Term: Longer repayment terms may result in higher interest rates.
- Income and Employment: A stable income and employment history can positively impact the interest rate.
Rounding up
Capfin loan interest rates are competitive and transparent, making it easier for South Africans to make informed decisions. By understanding the factors that influence interest rates and using the table provided, you can better plan your loan and manage your finances effectively. Always remember to read the terms and conditions carefully and seek advice from a financial advisor if needed.
Disclaimer
The interest rates and information provided in this article are subject to change and may not reflect the current rates. It is essential to check with Capfin directly for the most up-to-date information and to discuss your individual circumstances.
Here is the Capfin contact number