Can You Get Interest Free Loans In South Africa?

Yes, you certainly can get interest free loans in South Africa which are provided by certain companies from time to time.

However, you need to be aware that whilst loans may be promoted as an ‘interest free loans’ the lenders may recoup the interest in the fees that are charged on their loans.

While they aren’t that prevalent, there are few ways to get interest free loans.

3 Ways To Get Interest Free Loans

1. Interest Free Loan Account

If you’re a member of a CC (Close Corporation) or a director of a company you can have amounts paid into your loan account as an interest free loan.

SARS however is wise to this and would prefer you to take dividends that are subject to 20% withholding tax but tax free in your hands.

So if your loan account keeps growing with these interest free loans, without ever taking a dividend, SARS may penalise you.

For Straightforward Interest Free Loans – Apply Online here »

2. SA Loan Companies

In the past, Capfin offered interest free loans of up to R4,000 repayable over 1 month, however it seems that that option is no longer available.

However, from time to time certain lenders do offer small interest free loans repayable over a short time period but currently I’m not aware of any of these.

This SA Loan Company Offers Interest Free Loans…
Apply Online here »

3. Interest Free Period On Credit Cards

If you need short term funding you can always use your credit card for this as most credit cards have an interest free period as long as you settle the balance within this period (usually by the end of the month).

For instance Capitec offers 55 days interest free, and keeps their interest rate within the standard range of 15% to 18% which will vary depending on the client’s credit profile.

Absa, on the other hand, has a 2 day longer interest free payment period.

Take a look at the comparison below to see how you can take advantage of the interest free payment period.

Credit Card Interest Free Period – Comparison

Credit Card	Initiation Fee	Monthly Fee	Interest Free (days)	Minimum Monthly Salary Required
Absa Student Credit	R160	R25	57d	R800
Absa Transact Credit	R160	R35	57d	R2 000
Nedbank Classic Credit	R188	R37	55d	R3 000
Absa Gold Credit	R160	R40	57d	R4 000
FNB Gold Credit	R188	R43	55d	R6 700
Nedbank Gold Credit	R165	R43	55d	R8 300
Standard Bank Gold Credit	R165	R45	55d	R5 000
Capitec Global One Credit	R100	R50	55d	–
Standard Bank Titanium Credit	R165	R67	55d	R25 000
Standard Bank Platinum Credit	R165	R67	55d	R58 000
Absa Platinum Credit	R160	R68	57d	R25 000
Nedbank Platinum Credit	R188	R68	55d	R29 000
FNB Premier Credit	R165	R76	55d	R29 000
FNB Private Clients Credit	R165	R170	55d	R62 500
FNB Private Wealth Credit	R165	R200	55d	R125 000