Repayment essentials
- Ensure sufficient funds on the repayment date. A short balance triggers a bank return fee (typically R10–R35) and possible lender penalties.
- Always use the reference number from your credit agreement or account statement so allocation goes to the right loan.
- Timing matters: submit EFTs before your bank's cut-off for same-day clearing; after cut-off, expect the next business day.
Early settlement (prepayment)
Ask your lender for a settlement quote before you pay off early. The National Credit Act lets you close the loan with interest charged only for days the credit was outstanding. Prepayment penalties do not apply.
Loan extension / rollover
Some partners grant a short extension before the due date at their sole discretion. Contact the lender well ahead of the payment date if you expect a shortfall. Extensions, when granted, usually carry extra fees that the lender must disclose before you agree.
What happens if you miss a payment
- Penalty interest builds on the overdue balance.
- Your bank bills a debit-order return fee for each failed collection.
- The lender may add a default administration fee.
- After sustained non-payment, the lender reports the default to credit bureaux (TransUnion, Experian, Compuscan, XDS), hurting your score.
- Continued default can lead to third-party collection or a Magistrate's Court summons.
Best practices
- Set a calendar reminder two days before the due date to confirm your balance.
- If pay arrives late, call the lender before the due date to negotiate an arrangement.
- Use a bonus or windfall to settle early and cut total interest.
- Archive settlement confirmations in digital and printed form.
FAQ — How to repay
Do I repay Letocredit directly? No. Every repayment goes to the lender you signed with. Letocredit neither collects nor holds loan payments.
Can I settle early without a penalty? Yes, when the lender is NCR-registered. The National Credit Act blocks prepayment penalties on early settlement.
What if I have loans with two different Letocredit-matched lenders? Each lender runs its own affordability check. Holding two active loans at once raises over-indebtedness risk and is best avoided.