Cheapest way to borrow: card, loan or access bond? (2026/27)
Figures for the 2026/27 tax year. Prime rate checked 9 October 2026; tax tables and fees checked 30 September 2026. By AfroTech.
Not all debt costs the same. The National Credit Act caps interest at different levels for different kinds of credit, and the gap between the cheapest and most expensive is large.
The legal maximum rates today
| Type of credit | Maximum interest rate |
|---|---|
| Home loans, including access bonds | 19,25% |
| Credit cards and overdrafts | 21,25% |
| Other credit, such as vehicle finance | 24,25% |
| Personal loans (unsecured) | 28,25% |
The repo rate (7,25%) plus the margin set in regulation 42 of the National Credit Regulations. Lenders may charge less, never more.
Borrowing R 50 000 over 3 years
| Option | Rate | Monthly repayment | Total interest |
|---|---|---|---|
| Access bond (at prime) | 10,75% | R 1 631 | R 8 717 |
| Credit card (legal maximum) | 21,25% | R 1 890 | R 18 046 |
| Personal loan (legal maximum) | 28,25% | R 2 075 | R 24 698 |
Interest only, repaid in equal monthly amounts. Fees and credit life insurance come on top, especially on personal loans.
Which to use
- If you've paid extra into your bond, an access bond is usually by far the cheapest way to borrow. It's charged at your bond rate.
- Credit cards suit short-term spending you clear quickly, often interest-free if you pay the full balance each month.
- Personal loans are the most expensive. Borrow only what you need, over the shortest term you can manage.
Try it with your own numbers. The ZARWise calculator uses the same figures as this page.
Work out a personal loan repayment