Risk Disclaimer: Short-term credit is an expensive form of borrowing. The National Credit Regulator requires all registered credit providers to conduct an affordability assessment before granting a loan. Do not take out a loan if repayment would cause financial hardship. If you are over-indebted, contact the National Debt Helpline on 0861 663 7786.
Loan Parameters
| Parameter | Value |
|---|---|
| Minimum Loan Amount | R500 |
| Maximum Loan Amount | R5,000 |
| Minimum Loan Term | 61 days |
| Maximum Loan Term | 65 days |
| Maximum APR | 38% |
| Initiation Fee (on R1,000) | R150 |
| Monthly Service Fee | R85 |
| VAT (on R1,000 example) | R32 |
| Failed Debit Order Fee | R50 |
| Overdue Interest Rate | 5% per month on outstanding balance |
| NCR Registration | NCRCP16647 |
| Regulated Under | National Credit Act 34 of 2005 |
Borrower Requirements
To be eligible for a Koodo loan, applicants must meet the following criteria:
- South African citizenship or permanent residency — a valid South African ID document is required.
- Regular employment — you must receive a regular salary or wage into a South African bank account.
- Active South African bank account — your income must be deposited into this account, as repayment is collected via debit order.
- Proof of income — a recent payslip is required.
- Bank statements — typically the last three months of bank statements are required to assess affordability.
- Age: Must be 18 years or older.
Full Cost of Credit — Worked Example
Under the National Credit Act, all credit providers must disclose the total cost of credit. The following example is based on Koodo's published fee schedule:
Loan Amount: R1,000 | Term: ~61–65 days
| Component | Amount |
|---|---|
| Principal | R1,000 |
| Initiation Fee | R150 |
| Service Fee | R85 |
| Interest | R50 |
| VAT | R32 |
| Total Repayable | R1,370 |
| Cost of Credit | R370 (37% of principal) |
| Note: Actual costs may vary depending on the exact term, loan amount, and individual assessment. Always request a full pre-agreement quote (as required by the NCA) before signing. |
How to Verify This Information
Koodo publishes its rates at https://www.koodo.co.za/rates-and-fees. Those figures were current as of May 2026. Rate changes are possible — always verify directly with Koodo before proceeding.
Risk Warning
Short-term, high-cost credit should only be used for genuine emergencies. Missing a repayment will result in:
- A R50 failed debit order fee.
- An additional 5% per month interest on the overdue amount.
- A negative mark on your credit record at a credit bureau registered with the NCR.
- Potential referral to a debt collection process.
If you are struggling with debt, contact a registered debt counsellor. A list of registered counsellors is available on the NCR website at https://www.ncr.org.za/.
