A loan can give you access to money when you really need it. We have a look at the four kinds of loans you will find on ClearScore.

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When you need money that you don't have, you can rely on a loan to carry you through. It gives you access to the resources you need today and, at the cost of interest, it allows you to return the money in monthly, agreed-upon instalments.

There are many different categories of loans that you can get. For example, some are designed to assist you with the cost of your study expenses, and others can help you restructure your debt. However, loans are predominantly divided into two groups:

• Secured loans: These are tied to a specific asset, such as a house or car. This gives lenders extra security because they can repossess your asset if you fail to abide by your credit agreement. Therefore, you often get a slightly lower interest rate.

• Unsecured loans: These offer more freedom because they are not tied to an asset. You can spend these funds on anything you choose without having to explain your decision to anyone. The interest rate is often slightly higher (but you can reduce it by having a good credit score).

If you're trying to finance an asset that ties to a secured loan, such as a home loan, then it's often best to select this option. However, if you need to finance part of an asset or a smaller version of an asset, such as home renovations, then an unsecured loan is the better fit.

At ClearScore, we predominately connect you with the latter. In this article, we will have a look at four core types of loans that you will find on your dashboard.

You will only find loans that you have a "moderate" or "high" chance of being approved for on your ClearScore profile. Being shown an offer is not an approval - each lender makes the final decision after its own credit and affordability assessment. Sign up or log in to see what's available to you.

1. Long-term personal loans

Secured vs Unsecured Loans at a Glance

The distinction between secured and unsecured loans affects everything from your interest rate to how quickly you can access funds. The table below breaks down the practical trade-offs so you can decide at a glance which structure suits your situation.

Even if a secured loan offers the lowest interest rate, it may not be the right fit when you need flexible funding for renovations, medical bills, or debt consolidation. ClearScore primarily connects you with unsecured loan options, which means you can compare offers without tying your property or vehicle to the agreement. If you do need a secured loan - for instance, a home loan or vehicle finance - it is worth speaking to your bank directly, while using ClearScore to track how your credit profile is progressing on your interactive timeline.

A long-term personal loan is not linked to an asset. It allows you to borrow a large sum of money, and this is usually paid back over several years. It's used for larger financial expenses and, since the repayment term is reasonably long, you may receive a lower interest rate for it.

These loans are usually taken out to assist with unexpected expenses, such as large medical bills and major vehicle repairs. Through ClearScore, you could access the following long-term personal loans and more:

• African Bank Personal

• Nedbank Personal Loan

• Standard Bank Personal Loan

2. Short-term personal loans

Just like long-term personal loans, short-term personal loans aren't linked to an asset. However, as their name suggests, they are a lot smaller and they can be paid off over a short period of time - usually over a couple of weeks or months.

Short-term loans are also used for emergencies, such as unexpected travel expenses to attend a funeral or covering the cost of an online course you would like to do. You could find the following short-term loans on your ClearScore dashboard:

• Finchoice Short Term Loan

• Mpowa Short Term Loan

• Boodle Short Term Loan

3. Revolving loans

These loans are more versatile than general personal loans. Besides giving you immediate access to the funds you need, it also offers ongoing credit for the amount you have already paid back. For example, if you borrowed R10,000 and returned R2,000, then you can borrow R2,000 again.

This offers flexibility, but it often comes at the cost of a slightly higher interest rate (unless you have a great credit score). You can use revolving loans for anything you choose, and ClearScore is currently partnered with the following lenders and more:

• Finchoice Mobi Money Revolving Loan

• Standard Bank Revolving Loan

4. Consolidation loans

Loans Similar to Finchoice, Mpowa & Other SA Lenders on ClearScore

One of the most common reasons borrowers explore ClearScore is to find loans similar to Finchoice, Mpowa, or other well-known South African lenders. Whether your current provider turned you down, you want a better interest rate, or you simply prefer to compare before committing, it pays to know what alternatives are available - and how they differ.

The table below compares the key short-term, revolving, and consolidation lenders you may find on your ClearScore dashboard:

If you have been searching for loans like Finchoice or loans like Mpowa Finance, you do not need to approach each lender individually. ClearScore's matching engine analyses your credit score and financial profile, then surfaces only the offers you have a moderate or high chance of being approved for. These are not approvals: the lender makes the final decision after its own credit and affordability assessment. This means you can compare alternatives side by side - without multiple hard enquiries on your credit report - and choose the lender that fits your budget and repayment timeline.

If you have several debts that you're struggling to manage, then a consolidation loan may be right for you. It pays off all your debt, leaving you with a single loan to take care of. The repayment term is extended, which leads to lower monthly instalments, and you may receive a lower interest rate too. Bear in mind that a longer repayment term can increase the total amount you repay, eligibility and rates vary by lender, and consolidation does not resolve unaffordability in every case.

This is a practical measure you can take before you consider debt counselling, which is a formal legal process that involves a debt counsellor assisting you with debt restructuring. These are examples of the Consolidation loans you could find on ClearScore:

• African Bank Consolidation Loan

• Nedbank Consolidation Loan

Which loan should you choose?

How Much Will Your Loan Actually Cost? A Quick Breakdown

What makes up the total cost of a loan

Every personal loan in South Africa carries three core charges regulated by the National Credit Act. First is the interest rate, which is the percentage the lender charges you for borrowing the money - expressed as an annual rate but applied to your monthly balance. Second is the initiation fee, a once-off administrative charge capped by law at R1,207.50 plus 10% of the amount above R10,000 (up to a maximum of roughly R6,037.50). Third is the monthly service fee, currently capped at R69 per month, which is added to every instalment for the life of the loan. Together, these three components determine what you actually pay back - and they can add up to significantly more than the headline loan amount.

Worked example: estimated monthly repayment on a R50,000 personal loan over 36 months

Suppose you borrow R50,000 at an annual interest rate of 24% over 36 months. The initiation fee would be roughly R5,207.50 (R1,207.50 + 10% of R40,000), which most lenders capitalise into the loan. Your effective borrowed amount therefore becomes approximately R55,208. At 24% per annum (2% per month), the estimated monthly instalment works out to around R2,170 before the service fee. Add the R69 monthly service fee and you are looking at roughly R2,239 per month. Over three years, that totals about R80,604 - meaning you pay approximately R30,604 in interest and fees on top of the R50,000 you received. These figures are illustrative; your actual offer will differ based on the lender and your profile.

How your credit score changes the numbers

A higher credit score may mean lenders offer a lower interest rate, which could save you thousands over the life of a loan. In the example above, dropping the rate from 24% to 18% would reduce the total repayment by roughly R6,000. That is why it is worth checking - and improving - your score before you apply. ClearScore's Coaching Plans can guide you through the steps to strengthen your profile.

Compare real offers on your dashboard

Rather than estimating on your own, log in to ClearScore to see personalised loan offers that already factor in your credit profile. Each offer displays the interest rate, fees, and estimated monthly repayment, so you can compare the true cost across lenders in minutes - no manual calculations required.

Frequently Asked Questions About Loans on ClearScore

Can I get a loan through ClearScore with bad credit?

ClearScore shows you loan offers based on your individual credit profile, so even if your credit score is lower than you would like, you may still see options. Some lenders on the platform - particularly short-term loan providers - cater to borrowers with less-than-perfect credit histories. That said, a lower score usually means higher interest rates and smaller loan amounts. If your score sits in the Let's start climbing band (0-598), consider using ClearScore's Coaching Plans to improve it before applying, so you may qualify for better terms down the line.

What's the easiest loan to get approved for in South Africa?

Short-term personal loans tend to have the most accessible approval criteria because the amounts are small and the repayment periods are brief. Lenders such as Boodle and Mpowa, both available through ClearScore, are designed to process applications quickly with fewer requirements. Keep in mind, however, that easier approval often comes with a higher interest rate, so always check the total cost of the loan before you sign.

What hurts my credit score the most when applying for loans?

The single biggest factor that damages a credit score is missed or late repayments. Even one payment that is 30 days overdue can leave a negative mark on your credit report for up to two years. Other common culprits include maxing out your available credit, applying for multiple loans in a short window (each hard enquiry is recorded), and defaulting on existing agreements. Keeping your repayments on time and your credit utilisation low is the most effective way to protect - and grow - your score.

How does ClearScore decide which loans to show me?

ClearScore uses the information on your credit report - including your score, existing debts, repayment history, and income indicators - to match you with loan offers from its lending partners. You will only see products where you have a moderate or high likelihood of approval. Seeing an offer does not mean it has been approved - the lender carries out its own credit and affordability assessment before deciding. This saves you from unnecessary hard enquiries and helps you focus on realistic options. The offers update as your credit profile changes, so logging in regularly through your credit report is worthwhile.

Can I use a ClearScore loan to pay for medical expenses like surgery?

Yes. Because the personal loans available through ClearScore are predominantly unsecured, there are no restrictions on how you spend the funds. Many South Africans use short-term or long-term personal loans to cover urgent medical bills, elective procedures, or dental work. If the amount you need is relatively small and you can repay it within a few months, a short-term loan may be the most cost-effective route. For larger medical costs, a long-term personal loan with lower monthly instalments is usually the better choice.

The loan you select will depend on what you plan to use it for. Make sure you compare your options and shop around before you settle on your final choice.

Besides considering the interest rate and the repayment period, you should also account for the initiation fee and the monthly service fee. The former is a once-off payment, but the latter will be added to your account each month. Once you know the proposed repayment period, you should calculate how much your service fee will cost you at the end.

A good way to improve your chances of a fair deal is to keep your credit score high. If you're not looking for a loan right now, then consider our Coaching Plans that will teach you how to improve your credit score. On top of this, you should log in to your credit report often and make sure it's growing.

On top of this, you should log in to your credit report often and make sure it's growing. Through ClearScore you will be able to track your progress on an interactive timeline.