PEP Loans South Africa
Get cash loans at your nearest PEP store via Capfin.
Need quick cash? PEP stores across South Africa offer personal loans through their partner Capfin. You can apply in-store and get approved within minutes.
This guide covers everything you need to know about PEP loans - from requirements and interest rates to how to apply and what to watch out for.
Quick Facts
Loan Amount
R500 - R50,000
Based on affordability
Repayment Term
1 - 24 Months
Flexible terms
Interest Rate
Up to 29%
Per year (NCR maximum)
What is a PEP Loan?
PEP doesn't offer loans directly. Instead, they've partnered with Capfin, a registered credit provider, to offer personal loans at PEP stores. Capfin is part of the Pepkor Group (which owns PEP).
Key Points:
- Loans are provided by Capfin, not PEP directly
- Capfin is registered with the NCR (NCRCP 736)
- Apply at any PEP store with a Capfin kiosk
- Cash paid directly to your bank account
Requirements to Qualify
Basic Requirements
- South African citizen or permanent resident
- 18 years or older
- Permanently employed (minimum 3 months)
- Earn at least R2,000 per month
- Have a valid South African bank account
Documents Needed
- South African ID (green barcoded or smart card)
- Latest payslip (not older than 30 days)
- 3 months bank statements
- Proof of residence (utility bill/bank statement)
- Cell phone number linked to your ID
Interest Rates & Fees
Capfin charges fees according to the National Credit Act limits:
| Fee Type | Amount |
|---|---|
| Annual Interest Rate | Up to 29% per year |
| Initiation Fee (Once-off) | Up to R1,207.50 (for loans over R1,000) |
| Monthly Service Fee | R69 per month |
| Credit Life Insurance | Included (covers death, disability, retrenchment) |
* Actual rates depend on your credit profile and loan amount. Capfin will provide a quote before you commit.
Example: What Will You Pay?
Here's an example of what a R5,000 loan over 12 months might cost:
Loan Breakdown
* This is an estimate. Your actual repayment will depend on your credit profile and the final terms offered.
How to Apply for a PEP/Capfin Loan
Visit a PEP Store
Find your nearest PEP store with a Capfin kiosk. Most larger stores have them.
Bring Your Documents
Bring your ID, latest payslip, bank statements, and proof of residence.
Complete Application
A Capfin consultant will help you complete the application and run a credit check.
Get Your Quote
Receive a personalized quote showing your loan amount, interest rate, and monthly repayment.
Sign & Receive Funds
If you accept, sign the agreement. Money is typically paid into your account within 24 hours.
Can You Apply Online?
Yes! You can also apply for a Capfin loan online without visiting a PEP store:
- Visit capfin.co.za and click "Apply Now"
- Or dial *120*2274# (USSD - works without data)
- Or call 087 354 0000 to apply over the phone
How Repayment Works
Debit Order
Monthly repayments are collected via debit order on your payday. You choose the date when you apply.
Early Settlement
You can pay off your loan early at any time. Capfin will reduce the interest charged if you settle early.
Payment Difficulty?
If you can't make a payment, contact Capfin immediately at 087 354 0000. They may be able to adjust your payment date or offer a payment arrangement.
Pros and Cons
Pros
- Convenient - apply at any PEP store
- Fast approval (same day)
- Credit life insurance included
- Registered credit provider (NCR regulated)
- Can apply online, USSD, or in-store
- Early settlement allowed
Cons
- High interest rate (up to 29%)
- Monthly service fee of R69
- Initiation fee adds to loan cost
- Must be permanently employed
- Not available to self-employed
- Total cost can be significantly more than borrowed
Before You Borrow
- • Only borrow what you can afford to repay. Missing payments will damage your credit score.
- • Compare other options first. Bank personal loans may have lower interest rates if you have a good credit score.
- • Read the full agreement. Make sure you understand the total amount you'll repay.
- • Don't borrow to pay other debts. This creates a debt spiral that's hard to escape.
- • You have 5 business days to cancel a loan without penalty under the National Credit Act.
Frequently Asked Questions
Can I get a PEP loan if I'm blacklisted?
It depends on your situation. Capfin does credit checks, but being blacklisted doesn't automatically disqualify you. They look at your overall affordability and current income.
How long does approval take?
In-store applications are usually processed within 30 minutes. If approved, money is typically in your account within 24 hours (same day for some banks).
Can I get a second loan while still paying the first?
You may qualify for a top-up loan if you've been paying consistently. Capfin will assess your affordability before approving additional credit.
What happens if I miss a payment?
You'll be charged penalty interest and it will affect your credit score. Contact Capfin immediately if you're struggling - they may offer a payment arrangement.
Is PEP Money the same as Capfin?
PEP Money offers various financial services like airtime and electricity. Capfin specifically handles personal loans. Both are available at PEP stores but are different services.
Alternatives to Consider
Before taking a PEP/Capfin loan, consider these alternatives:
Bank Personal Loan
Usually lower interest rates if you have a good credit score.
Credit Card
Better for short-term needs if you can pay it off quickly.
Employer Advance
Some employers offer salary advances at no or low cost.
Savings/Stokvel
If it can wait, saving up avoids interest altogether.