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Responsible Lending
A short-term loan can help with an unexpected cost, but only if you can comfortably repay it. Here is how we, the law and you can make sure borrowing stays manageable.
The Short Version
The most important points, before you borrow.
- Only borrow what you need, and only if the repayment fits comfortably in your budget.
- Registered lenders must check your credit record and affordability before they lend.
- Short-term loans suit one-off costs, not everyday expenses or paying off other debt.
- Read the written quote carefully. You never have to accept an offer.
- If you are struggling, help is free: call the National Credit Regulator on 0860 627 627.
1Our Commitment
EzyFund wants borrowing to help you, not hurt you. That’s why we:
- show the most a loan can cost before you apply, using the legal maximums in our loans calculator;
- only send applications to credit providers registered with the National Credit Regulator (NCR);
- never pressure you to apply or to accept an offer;
- explain costs and the process without jargon;
- point you to free, independent help if money is tight.
2What The Law Requires Of Lenders
The National Credit Act 34 of 2005 protects you against reckless lending. A registered lender must:
- Assess your affordability. Before lending, they must look at your income, expenses, existing debt and credit record to make sure you can afford the repayments.
- Explain the agreement. They must give you a pre-agreement statement and quotation showing every cost before you sign.
- Stay within the caps. Interest and fees on short-term credit are limited by law.
Credit given without a proper assessment, or that leaves you over-indebted, can be reckless credit. A court can declare a reckless agreement and suspend or set aside your obligations under it. You also have a duty: you must answer the lender’s questions fully and truthfully.
3Is A Short-Term Loan Right For You?
A short-term loan can make sense for:
- a one-off, unexpected cost, such as a car repair or medical bill;
- a cost you can repay from your next salary or within a few months.
It is usually not a good idea to borrow for:
- everyday expenses such as groceries, rent or transport;
- repaying another loan or credit card;
- non-essential spending, gambling or lending to someone else.
Before you borrow, consider other options: using savings, asking a creditor for a payment arrangement, or speaking to your employer about a salary advance.
4Check That You Can Afford It
Do this simple check before you apply:
- Start with your monthly income after tax and deductions.
- Subtract your essential expenses: rent, food, transport, school fees and utilities.
- Subtract the repayments on all the debt you already have.
- Look at what is left. The new instalment should fit comfortably, with money to spare for emergencies.
Use our loans calculator to see the maximum instalment and total cost for different amounts and terms. A shorter term costs less in total, but the monthly instalment is higher.
5Warning Signs Of Debt Stress
Be careful about taking on new credit if you notice any of these signs:
- you are borrowing to repay other debt;
- you use credit for everyday essentials like food or transport;
- you regularly run out of money before payday;
- you have missed repayments or debit orders have bounced;
- creditors or debt collectors are contacting you;
- you feel anxious about money most of the time.
If this sounds familiar, speak to a registered debt counsellor before you borrow again (see section 7).
6Before You Sign
- Read the quote. Check the total to repay, the instalment amount, the payment dates and every fee.
- Ask questions. If anything is unclear, ask the lender to explain before you sign.
- Never sign blank or incomplete documents.
- Keep your cards and PIN to yourself. Never hand your bank card, PIN or ID document to a lender to keep.
- Never pay an upfront fee to “release” a loan. It is a common scam.
- You can say no. You are never obliged to accept an offer.
7If You're Struggling To Repay
Act early. The sooner you deal with a problem, the more options you have.
- Talk to your lender before a payment is missed. They may agree to a payment arrangement.
- Consider debt counselling. A debt counsellor registered with the NCR can assess whether you are over-indebted and help restructure your debt into one affordable monthly payment. Once you apply for debt review, you can’t take on new credit until it ends.
- Know your rights. Before a lender can take legal action to enforce a credit agreement, it must send you a written notice and give you at least 10 business days to respond, for example by approaching a debt counsellor or agreeing on a payment plan.
8Free Help And Useful Contacts
- National Credit Regulator (NCR): 0860 627 627 or ncr.org.za. The NCR can refer you to a registered debt counsellor and lets you check whether a lender is registered.
- Your credit report: you are entitled to one free credit report every 12 months from each registered credit bureau. Checking it regularly helps you spot mistakes and fraud.
- EzyFund: questions about our service? Contact us.
9Report Irresponsible Or Illegal Lending
If you believe a lender has lent to you recklessly, charged more than the law allows or treated you unfairly, complain to the lender first. If it isn’t resolved, contact the NCR at complaints@ncr.org.za.
Unregistered lenders (sometimes called “mashonisas”) operate outside the law and may charge illegal interest or keep your bank card. Avoid them, and report them to the NCR.
See The Cost Before You Borrow
Use the calculator to check the maximum instalment and total cost, then decide if a loan fits your budget.