Published: 2026-05-19 | Last updated: 2026-05-19
Risk Disclaimer: Missing a repayment has serious financial consequences including default fees, increased interest, and a negative credit record entry. If you anticipate difficulty repaying, contact your lender immediately — before the due date.
How Repayment Works
Because ILSA™ is a loan broker, repayment is managed directly between the borrower and the lender named in the credit agreement. ILSA™ does not collect repayments. Contact your specific lender for any repayment queries.
The primary repayment mechanism for South African short-term lenders is a DebiCheck debit order — a pre-authorised, verified debit order that the lender presents to your bank on the agreed repayment date. When you sign the credit agreement, you also authorise this debit order.
Primary Repayment Method: DebiCheck Debit Order
| Detail | Information |
|---|---|
| Method | DebiCheck authenticated debit order |
| Timing | Presented on the agreed repayment date (usually your payday) |
| Account | The same bank account to which funds were disbursed |
| Currency | South African Rand (ZAR) |
| Authorization | You authorise the debit order when signing the credit agreement |
How DebiCheck works:
- When you sign the credit agreement, a DebiCheck mandate is submitted to your bank.
- Your bank sends you a notification (SMS or in-app) to confirm or decline the mandate.
- You confirm the mandate via your bank's app or USSD.
- On the agreed repayment date, the lender presents the debit for the agreed amount.
- Your bank debits your account and the repayment is complete.
Alternative Repayment Methods
Individual lenders in the ILSA™ panel may also accept repayment via:
- Electronic Funds Transfer (EFT): You initiate a payment from your internet banking to the lender's account. Use your loan reference number as the payment reference.
- Online portal payment: Some lenders provide a portal where you can log in and make a card or EFT payment.
Contact your specific lender to confirm which alternative methods are available for your loan.
Repayment Methods Comparison
| Method | Effort Required | Speed | Notes |
|---|---|---|---|
| DebiCheck debit order | None (automatic) | Instant | Standard method; must be confirmed via your bank |
| EFT from internet banking | Manual | Same day (business hours) | Use loan reference as payment reference |
| Online lender portal | Manual | Same day or next day | Availability depends on lender |
Early Settlement
You have the right under the National Credit Act to settle your loan early at any time without a penalty. The amount owed at early settlement will be the outstanding principal plus accrued interest up to the settlement date, plus the remaining portion of the initiation fee if applicable.
To settle early:
- Contact your lender and request a settlement quote.
- The lender must provide the settlement figure in writing within a reasonable time.
- Pay the quoted amount via EFT using the reference provided by the lender.
- Confirm receipt of the settlement with the lender in writing.
What Happens If You Miss a Payment?
Under the NCA, lenders may charge:
- Default interest on the overdue amount (capped at the original contracted rate)
- A default administration fee for the costs of managing the default
More seriously, a missed payment may result in:
- A negative listing on your credit record with a credit bureau
- The lender issuing a Section 129 notice (formal default notice under the NCA)
- Referral to a debt collector
- Legal action to recover the debt
If you anticipate difficulty repaying, contact your lender before the due date. Under the NCA, lenders must consider a debt restructuring arrangement if you are genuinely unable to pay.
Loan Extension (Rollover)
Some lenders in the ILSA™ panel may offer a payment extension or rollover, subject to affordability reassessment. Contact your lender directly for details. Note that extending a short-term loan increases the total cost of credit.
Best Practices for Repayment
- Ensure sufficient funds are in your account on the debit order date at least 24 hours in advance.
- Do not unilaterally cancel the debit order — this constitutes a default. Contact the lender first.
- Keep your contact details updated with the lender so you receive repayment reminders.
- Request a settlement quote before making any early repayment to ensure you pay the correct amount.
- Save your repayment confirmation (bank statement or email receipt) for your records.
Frequently Asked Questions About Repayment
Can I change my repayment date? This depends on the individual lender. Contact the lender named in your credit agreement as soon as possible. A date change may be possible once but typically cannot be done repeatedly.
What if the debit order bounces? Your bank may charge a returned debit fee. The lender will attempt to re-present or contact you for alternative payment. This still constitutes a missed payment and may affect your credit record.
How do I get a settlement quote? Contact your lender directly via the phone number or email in your credit agreement and request a written settlement quote. The lender is obligated to provide this.