secured loan
Use your vehicle, property, or savings as collateral — get lower interest and higher loan amounts.
A secured loan is backed by an asset you own — such as a car, home, or fixed deposit. Because the lender's risk is significantly lower, you receive a much lower interest rate and can borrow larger amounts over longer periods. This makes secured loans ideal for major expenses like home renovations, debt consolidation, or business capital, where you want affordable monthly payments and the confidence of a fixed term.
Rates from 0.9% per month · amounts up to R1,000,000 · terms 12–120 months
secured loan overview
A secured loan (also called an asset-backed loan) uses your valuable asset as security. This could be a fully paid‑off vehicle, a property with equity, or even cash in a fixed deposit. Because you provide collateral, the interest rate is often half that of unsecured loans. You continue to use the asset while repaying the loan. If you were to default, the lender has the right to repossess the asset — so it's essential to borrow responsibly. Secured loans are available from R20,000 up to R1 million, with repayment terms tailored to your budget.
Many clients choose secured loans to consolidate high‑interest debt, fund a business, or make home improvements. The combination of lower rates and longer terms makes monthly payments highly affordable.
key features & benefits
types of collateral accepted
vehicle
Fully paid‑off car, bakkie, or motorbike (age generally less than 12 years). We assess market value and lend up to 80%.
property
Residential or commercial property with available equity. Loan‑to‑value up to 70% of the equity portion.
cash / investments
Fixed deposits, unit trusts, or savings accounts. We hold a lien, and you continue earning interest.
interest rates & fees (examples)
| Loan amount | Monthly interest (simple) | Typical term | Initiation fee |
|---|---|---|---|
| R20,000 – R100,000 | 1.5% – 2.2% | 12–60 months | R500 – R1,200 |
| R100,001 – R500,000 | 1.0% – 1.8% | 24–84 months | R1,500 – R3,000 |
| R500,001 – R1,000,000 | 0.9% – 1.4% | 36–120 months | R4,000 – R6,000 |
Your actual rate depends on the asset, loan‑to‑value ratio, and your credit profile. The loan is registered with a notarial bond or cession, which is why rates are low.
real‑life example
home renovation
Client: The Mbatha family wants to build a second bedroom (R150,000). They have a paid‑off car valued at R180,000.
Secured loan: R150,000 over 60 months at 1.4% p.m. Monthly repayment = R3,720. Total interest over 5 years = R73,200.
Outcome: Affordable monthly payment, home value increased, and they keep driving their car.
debt consolidation with property
Client: David has R200,000 in high‑interest debt (credit cards, store cards). He has equity in his home.
Secured loan: R200,000 over 84 months at 1.1% p.m. Monthly repayment = R3,630. Previous payments were R7,500+.
Outcome: Single payment, lower rate, saves over R3,800 per month.
how to apply (step by step)
1. enquiry & asset info
Tell us about your asset (car details, property valuation, or investment statement). We'll give an initial indication.
2. valuation
For vehicles: we may request photos or a brief inspection. For property: a desktop valuation or sworn appraiser.
3. formal offer
Based on asset value and your income, we present a loan amount, rate, term, and fees.
4. legal registration
We register a notarial bond (for cars) or a mortgage bond (for property) — the cost is included in the loan.
5. funds paid
Once registered, money is transferred to your account (usually 2–5 days, faster for vehicles).
6. monthly repayments
Fixed debit order each month. You keep using the asset. After final payment, the bond is cancelled.
eligibility criteria
- South African citizen / permanent resident, 18+
- Own a valuable, unencumbered asset (or with sufficient equity)
- Regular, verifiable income
- Bank account in your name
- Not under sequestration or debt review (though we consider applications with consent)
Even if your credit record is less than perfect, the asset security means you may still qualify.
frequently asked questions
What happens if I can't repay?
We will work with you to find a solution. Ultimately, the asset may be repossessed, so communication is key.
Can I use someone else's asset as collateral?
Yes, with their consent and signature. They must understand the risk.
How long does registration take?
For vehicles, 1–3 days. For property, 1–2 weeks (bond registration at deeds office).
Will I lose my asset if I pay on time?
No. You retain full ownership and use, provided you keep up with payments.
Can I pay off the loan early?
Yes, with no penalties. You only pay interest up to the settlement date.
Is my asset at risk if the loan is small?
The asset is always at risk if you default, regardless of loan size. Only borrow what you need and can afford.
important considerations
- Secured loans offer lower rates, but the asset can be repossessed if you don't pay.
- Make sure you have a stable income to afford the monthly instalments for the full term.
- All legal costs (bond registration, cancellation) are disclosed upfront and included in the loan.
- We encourage you to compare total cost over the full term, not just the monthly payment.
Secured loan .