Understanding the true cost of credit is vital. CenturyZA provides a full pre-agreement quotation before you sign any contract, detailing the exact principal, interest, initiation fee, and monthly service fees.
Example Cost Breakdown
If you take out a short-term loan of R2,000 for 30 days, the NCA-regulated costs would typically look like this:
| Cost Component | Amount (ZAR) |
|---|---|
| Loan Principal | R2,000.00 |
| Interest (at 5% per month) | R100.00 |
| Initiation Fee (subject to NCA cap) | R250.00 |
| Monthly Service Fee | R69.00 |
| Estimated Total Repayable | R2,419.00 |
Note: This is an illustrative example. Actual costs may vary based on your specific risk profile and exact loan term.
The Importance of the Affordability Assessment
To comply with the National Credit Act, CenturyZA must verify your income and expenses. This is why you are required to submit three months of bank statements and your latest payslip. The assessment ensures that after you have paid your essential living expenses and existing debt obligations, you still have enough disposable income to comfortably meet your CenturyZA loan instalment.