Key takeaway
A PEP loan is a Capfin personal loan applied for at a PEP store. Capfin is a division of Pepkor Trading (Pty) Ltd and a registered credit provider, NCRCP13053. Loans run from R1,000 to R50,000 over 6, 12 or 24 months. On the example PEP publishes in store, R4,000 over six months costs a maximum of R957 a month, or R5,742 in total; the same R4,000 over 12 months costs a maximum of R516 a month, or R6,190 in total. You need a South African ID, your three latest payslips or bank statements, a valid bank account and a cellphone number. Payout is within 48 business hours of approval.
What is a PEP loan?
A PEP loan is a Capfin personal loan that you apply for through a PEP store. PEP staff take your documents, scan them on a FICA device and submit the application to Capfin. Capfin then contacts you directly to finalise the loan.
Capfin trades as a division of Pepkor Trading (Pty) Ltd, registration number 1958/003362/07, and is registered with the National Credit Regulator as a credit provider under NCRCP13053. The same loan is available at Ackermans stores and directly from Capfin online, by SMS or by USSD, the PEP counter is a distribution channel, not a separate product.
That matters for three practical reasons. Your credit agreement is with Capfin, so queries, settlement quotes and payment arrangements go to Capfin and not to the PEP store. The pricing is Capfin's pricing, so applying in store gets you no better or worse deal than applying online. And when you compare offers, you are comparing Capfin against other lenders, our Capfin Personal Loan page sets out the full product detail.
It is unsecured credit, which means you put up no asset as security. It is also a fixed-instalment loan collected by debit order, not a revolving facility you can draw on again once you have repaid.
How much can you borrow, and for how long?
Capfin lends from R1,000 to R50,000, repayable over 6, 12 or 24 months. Which amount and which term you are offered depends on your credit record and on Capfin's affordability assessment, not on what you ask for.
The National Credit Act requires every credit provider to check that you can afford the instalment out of your income after your existing commitments and reasonable living expenses. That is why two people applying at the same PEP counter on the same day can be offered very different amounts.
Longer is not automatically better. A 24-month term brings the instalment down, but you pay the monthly service fee and the credit life premium 24 times instead of six, and you pay interest for four times as long. If you can carry the higher instalment, the shorter term almost always costs less overall.
What does a PEP loan cost?
PEP publishes a worked example in store and on its loan page. This is the clearest picture of the pricing you will get before you apply.
6-month loan | 12-month loan | |
Loan amount | R4,000 | R4,000 |
Maximum interest rate | 5% a month | 28% a year |
Initiation fee | R535 | R535 |
Maximum monthly service fee | R69 | R69 |
Monthly Capfin credit life premium | R15 | R14 |
Maximum monthly instalment | R957 | R516 |
Maximum total repayment | R5,742 | R6,190 |
All figures include VAT. PEP's example is based on a first loan in a calendar year at the prime rate as at January 2025.
Three things are worth pulling out of that table.
The shorter loan costs less in rand, even though the rate looks higher. Five percent a month sounds worse than 28% a year, and in annual terms it is. But you only pay it for six months, and you pay the service fee and premium six times instead of twelve. R5,742 against R6,190 is a R448 difference on a R4,000 loan.
The initiation fee is the regulated maximum. Under the National Credit Act, the most a lender may charge on a R4,000 loan is R165 plus 10% of the amount above R1,000, plus VAT, which works out to R535. Capfin charges the ceiling. There is no room for a higher fee, but there is also no discount, and the fee does not shrink if you choose a shorter term. On a small, short loan the fees do more damage to the total than the interest rate does. Our guide to the maximum prescribed interest rate explains the caps every lender has to work within.
The rate depends on whether it is your first loan of the year. Capfin charges a maximum of 5% a month on a first loan taken over six months, and 3% a month on subsequent loans in the same calendar year. Repaying on time and coming back is priced better than borrowing for the first time.
The figures above are maximums. Your quote could come in lower, and Capfin will give you the exact numbers before you sign. Do not sign anything until you have seen the total amount repayable, not just the instalment.
Credit life insurance is compulsory
Every Capfin loan carries Capfin Credit Life, underwritten by Abacus Life Limited. It settles the outstanding balance if you die, and covers you in defined circumstances such as disability or retrenchment. Capfin prices it at R5.50 a month per R1,000 borrowed, although the premiums shown in the R4,000 example are lower than that formula produces, ask in store which figure applies to your loan.
Credit life is legal and, on unsecured credit, sensible. But you are allowed to substitute your own policy if you already have cover that does the same job. If you have a funeral or life policy that would settle this debt, ask Capfin what it needs to accept a cession instead of selling you a new premium. On a 24-month loan, a premium you did not need adds up.
What you need to apply
PEP asks for four things:
A valid South African ID
Your three latest payslips or your three latest bank statements
A valid bank account
A valid cellphone number
Capfin adds that you must be 18 or older, permanently employed and earning a monthly salary, with an active account at a South African bank. You should also not be under debt review, if you are, you may not take on new credit, and the application will be declined.
Take the originals of your documents. The store scans them; you do not hand them over.
How to apply for a PEP loan
1. Take your documents to a PEP store
Any PEP store offering Capfin services can take the application. Staff scan your ID and payslips or statements on a FICA device.
2. The store submits your application to Capfin
PEP does not approve or decline anything. The application goes to Capfin, which runs the credit and affordability checks.
3. Capfin contacts you to finalise it
Capfin phones or messages you to confirm your details, give you the quote and agreement, and take your banking details.
4. The money is paid into your account
Capfin pays out within 48 business hours of approval, straight into your bank account. Repayments then come off by debit order on an agreed date each month.
If you would rather not go into a store, the same loan is available at capfin.co.za, by SMS to 33005, or on USSD at 1205566#. Standard SMS rates apply. Capfin can also be reached on 087 354 0000 or at info@capfin.co.za.
When a PEP loan makes sense
A PEP loan is worth considering if you need a modest amount quickly, you are permanently employed, and applying in person suits you better than applying online. For people without reliable data or a smartphone, a counter in a store you already shop at is a genuine advantage, and PEP's footprint reaches towns where the banks have closed branches.
It also suits people who want a fixed, finite debt. You know the instalment, you know the end date, and the debit order does the work.
When it does not
Think twice if you are borrowing to cover other debt repayments. That is a signal to look at debt consolidation or, if the pressure is serious, debt counselling, adding an eighth creditor rarely helps.
Think twice, too, if you are funding something you could plan for. Studies, a car or home improvements are better served by a longer-term personal loan at a much lower rate. Compare what else you would qualify for on our personal loans hub before you commit, and read personal loans explained if you want the mechanics in plain language.
And if what you actually need is flexible, repeat access to credit rather than a lump sum, a card may fit better, our comparison of a personal loan versus a credit card sets out the difference.
What to check before you apply
1. Check your credit score first
Every application leaves a mark, and several enquiries in a short space of time can pull your score down. Check your credit score on JustMoney before you queue, so you apply once and in the right place. Our ultimate guide to understanding your credit score explains what moves the number, and how do I know if I qualify for a loan? covers what lenders actually assess.
2. Work out whether the instalment fits
R957 a month for six months is a real commitment on a modest salary. Run it through the JustMoney budget calculator with your actual income and expenses, and check that the debit order date falls after payday.
3. Compare the six-month and 12-month totals
Ask the consultant for the total repayable on both terms, not just the instalments. On PEP's own example the shorter term saves R448 on R4,000. Choose the shortest term you can comfortably carry.
4. Ask what the credit life premium is and whether you can substitute it
Get the rand figure for your loan. If you already hold cover that would settle the debt, ask what Capfin requires to accept it.
5. Read the agreement before you sign
It is a Capfin agreement, governed by the National Credit Act. Check the total amount repayable, the instalment, the number of instalments, the debit order date and the early settlement terms. For a broader checklist, see personal loans: what you need to know.
Frequently asked questions
Who actually lends the money on a PEP loan?
Capfin, a division of Pepkor Trading (Pty) Ltd, registered with the National Credit Regulator under NCRCP13053. PEP takes the application; Capfin assesses it, approves it, pays it out and collects the repayments.
How much can I borrow from PEP?
Capfin lends from R1,000 to R50,000. What you are offered depends on your credit record and affordability assessment.
How long do I have to repay a PEP loan?
Six, 12 or 24 months, depending on the amount and on Capfin's affordability assessment.
What does a R4,000 PEP loan cost?
On PEP's published example, a maximum of R957 a month over six months, or R5,742 in total; and a maximum of R516 a month over 12 months, or R6,190 in total. Both include an initiation fee of R535, a monthly service fee of up to R69 and a monthly credit life premium.
What interest rate does a PEP loan charge?
A maximum of 5% a month on a first six-month loan, dropping to 3% a month on subsequent loans in the same calendar year. On a 12-month loan, PEP's example uses a maximum of 28% a year.
What do I need to bring to the store?
A valid South African ID, your three latest payslips or three latest bank statements, a valid bank account and a valid cellphone number.
How long does it take to get the money?
Capfin pays out within 48 business hours of approval, directly into your bank account.
Can I get a PEP loan if I am self-employed or on a grant?
Capfin requires applicants to be permanently employed and earning a monthly salary, so self-employed income and grant income generally do not qualify.
Can I get a PEP loan while under debt review?
No. If you are under debt review you may not take on new credit until you are issued with a clearance certificate.
Can I apply without going into a store?
Yes. The same Capfin loan is available online at capfin.co.za, by SMS to 33005, or on USSD at 1205566#.
Do I have to take the credit life insurance?
Capfin Credit Life, underwritten by Abacus Life Limited, is part of the loan. You may be able to substitute an existing policy that provides equivalent cover — ask Capfin what it requires.
Can I settle a PEP loan early?
Yes. Request a settlement quote from Capfin. The quote is valid until the date you select, up to a maximum of 21 days, and the full balance must be paid before that date.
What happens if I miss a payment?
Non-payment is reported to the credit bureaus and will damage your credit record. Contact Capfin's collections team on 087 285 1234 before the debit order bounces to arrange an alternative.
The bottom line
A PEP loan is a convenient front door to a Capfin loan, and convenience is worth something, especially if the nearest bank branch is an hour away. The product itself is ordinary unsecured credit: R1,000 to R50,000, six to 24 months, fixed instalments by debit order, credit life included.
The cost is where the attention belongs. On PEP's own example, R4,000 comes back as R5,742 over six months or R6,190 over 12, and the R535 initiation fee is the regulated maximum. That is the reality of small-ticket unsecured credit in South Africa, not a criticism of Capfin, but it is a good reason to borrow the smallest amount over the shortest term you can manage, and to know what else you qualify for first.
Before you join the queue, check your credit score on JustMoney, run the instalment through the budget calculator, and compare personal loans so you are choosing the PEP counter rather than defaulting to it.
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