There is no single amount that everyone can borrow. Lenders must check what you can afford, and the answer comes from your income, your expenses and the debt you already carry. You can estimate it yourself before you apply.
Why lenders check affordability
The National Credit Act requires credit providers to avoid reckless lending. That means they must assess whether you can repay without hardship. The result decides how much, if anything, they can offer you.
The numbers that matter
- Gross and net income: What you earn before and after tax.
- Fixed expenses: Rent or bond, transport, school fees, insurance.
- Existing debt repayments: Loans, cards, store accounts, vehicle finance.
- Living costs: Food, utilities, airtime and data.
A simple way to estimate your limit
- Write down your monthly take-home pay.
- Subtract your fixed expenses and living costs.
- Subtract your current debt repayments.
- What is left is the most you could safely put toward a new instalment.
- Keep a buffer, so a small emergency does not make you miss a payment.
If the leftover amount is small or negative, a new loan is likely to strain your budget.
Example
Imagine take-home pay of R12,000, fixed costs and living expenses of R9,000 and existing instalments of R1,500. That leaves R1,500. A sensible new instalment would be well below that, so you keep a cushion. The figures are only an illustration, so use your own numbers.
How to increase what you can borrow
- Reduce existing debt before applying.
- Close or lower the limit on unused store and card accounts.
- Show regular income through your bank account.
- Apply for a longer term only if the total cost is still acceptable.
FAQ
Is there a standard percentage of income I can borrow? Lenders use their own affordability models, so it varies.
Can I borrow more with a co-applicant? Some lenders allow joint applications, which can raise the combined affordability. Both people take on the debt.
Should I borrow the maximum offered? Not necessarily. Borrow only what you need.