Loan costs and calculator assumptions

What the numbers represent

These are the assumptions used by this website’s model, not BluCross lending rates or an external provider’s offer. The model does not assess eligibility or import a live quotation. Compare the result with the written quotation supplied by your lender.

Interest and fees

The standard example uses 5% interest per month; the lower-rate switch uses 3%. The initiation-fee model is R165 plus 10% of principal above R1 000, limited to R1 050 and 15% of principal before VAT. The service-fee model uses R60 per month before VAT, pro-rated by days for a single repayment. It adds 15% VAT to those two fees. These settings do not establish the legal classification or applicable limits of an actual agreement.

Insurance and discounts

The optional insurance model uses R4.50 per R1 000 of outstanding principal per month. Actual cover, exclusions, provider and premium must come from an insurance quotation. The discount scenarios illustrate reductions in interest and initiation fees; they are not earned membership benefits. Compare the scenarios.

Check the arithmetic

R2 000 for 30 days at the standard settings gives R100 interest + R304.75 initiation fee + R69 service fee = R473.75 cost of credit, and R2 473.75 total repayment. No insurance is included in that example. Fees are not deducted from the modelled advance or added to principal for further interest.

Dates and comparison

In the browser, the example starts today in South African time if it is a working day, otherwise the next working day. Static examples show their own fixed date. The model moves weekend/public-holiday collection dates forward; a real lender’s agreement controls its collection rules. A monthly rate is not an annual rate: compare total cost, term, payment schedule and any APR provided on actual quotations. Open the calculator.