The cost has four parts
| Component | method | What it means |
|---|---|---|
| Interest | 5% or 3% per month | 5% for a first short-term loan in a calendar year; 3% for subsequent loans, subject to legal classification. New to RandHaven is a separate question. |
| Initiation fee | R165 + 10% above R1 000, with caps | Before VAT: the lower of the formula, R1 050 or 15% of principal. Charged once. |
| Service fee | R60 per calendar month, before VAT | Apportioned to the illustrative loan days within each calendar month. |
| Credit-life insurance | R0.00 in this estimate | No insurance product or optional premium has been added. |
Three ways to read the same example
All columns use R2 000 over 30 days from 1 November 2026, with 5% monthly interest. This holds the rate constant so that the voluntary fee saving is visible.
| Cost | Standard | Welcome | Circle |
|---|---|---|---|
| Amount received | R2 000.00 | R2 000.00 | R2 000.00 |
| Interest | R100.00 | R100.00 | R100.00 |
| Initiation fee (incl. VAT) | R304.75 | R284.75 | R274.75 |
| Service fee (incl. VAT) | R69.00 | R69.00 | R69.00 |
| Total to repay | R2 473.75 | R2 453.75 | R2 443.75 |
Welcome is for a first RandHaven agreement. Circle is for an eligible returning customer. They do not stack. The lower statutory rate for a subsequent calendar-year loan is not a loyalty reward.
How the calculation works
- Interest = amount × monthly rate × days ÷ 30. This 30-day interest convention is a calculator assumption; the provider’s quotation takes precedence.
- Service fee = R60 × the sum of covered days divided by the number of days in each relevant calendar month. The start date is included; the repayment date is excluded.
- Initiation and service fees include an assumed 15% VAT. Interest is calculated on principal only; fees are not added to the interest-bearing balance.
- The Welcome saving is up to R20; Circle is up to R30. Each reduces the gross initiation fee, never below zero. Any unused portion is not paid out or carried over.
- Each charge is rounded to the nearest cent. The single scheduled payment equals principal plus the rounded charges less the benefit. VAT is included, not added a second time.
The estimates use the fee caps and VAT assumptions described above. They do not replace a personal quotation. Compare the provider’s actual charges, tax treatment and repayment date before accepting.
What about late or early payment?
Late-payment consequences must be stated in the actual agreement and comply with applicable law; this calculator adds no invented penalty. Contact support as soon as a payment may be missed. For early repayment, request a dated settlement figure because charges can differ from the original illustration.
Read about early settlementSource documents
Government Gazette 39379, GN 1080 sets out the cited interest and fee limits. The National Credit Act provides the legislative framework. The calculator is an illustration, not a legal opinion or personalised quotation.