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Capitec – Consolidation loan overview

Capitec does not sell a separate “consolidation loan” brand. Instead, it lets you use a standard personal term loan for debt consolidation by choosing “Debt consolidation” as the reason for credit in the app or at a branch.

Quick spec (personal loan used for consolidation)

• Loan type: Unsecured personal term loan (no house or car as collateral).
• Main purpose: Combine multiple unsecured debts (credit cards, store accounts, personal loans, etc.) into one loan with a single fixed monthly instalment.
• Typical loan amount: From about R1 000 up to R500 000, depending on your profile and affordability.
• Repayment term: 1 to 84 months (7 years) for personal loans.
• Interest rate (indicative): Personalised, starting from around 12.25% per year for qualifying clients and ranging into the 20s for higher-risk profiles, within the NCA maximums.
• Decision and payout: Often approved in minutes with same-day or near-immediate payout once all checks and documents are in place.

Older Capitec content and some comparison sites still refer to a R250 000 maximum for consolidation over 84 months; current official credit pages and tools show up to R500 000 personalised credit on term loans and access facilities.

Benefits of a Capitec consolidation loan

• One fixed monthly instalment instead of several smaller ones
• Potentially lower total instalments compared with your current mix of debts
• Personalised interest rates based on your risk profile
• Flexible terms up to 84 months for breathing space
• Strong digital experience (app, online, WhatsApp) – minimal paperwork if you already bank with Capitec
• Regulated under the National Credit Act with full affordability checks
• Backed by a large, profitable bank with millions of clients and high customer-satisfaction scores

Why choose Capitec for consolidation?

Scale and stability

Capitec is South Africa’s biggest retail bank by client numbers, with around 24–25 million clients, and has shown strong profit growth in 2024–2025. For you, that means a well-capitalised, established lender.

Clear, personalised pricing

Interest rates are personalised and published in a clear table for different amounts and terms. You can see the full cost – including the mandatory credit-life insurance, initiation fee and monthly service fee – upfront.

Long terms for lower instalments

You can stretch the term to as long as 84 months, which can significantly reduce your monthly instalment. Capitec’s own education content warns that longer terms increase total interest, but the lower instalment can be a lifeline if cash flow is tight.

Digital, app-driven process

Existing clients often complete the full estimate-to-approval journey on the app without visiting a branch, and the money can be available very quickly after approval.

Strong focus on financial education

Capitec publishes detailed articles about debt consolidation, credit basics and affordability. This is helpful if you want to understand the trade-offs rather than just taking whatever loan you’re offered.

Multiple debt-help options

If consolidation is not suitable or you’re already in distress, Capitec also talks about rescheduling loans and alternative debt-relief routes, and provides dedicated channels for debt-stress clients.

NCR-regulated, with clear duties

As a registered credit provider (NCRCP13) and FSP (46669), Capitec is bound by NCR and FSCA rules. It must avoid reckless lending, check affordability and behave within the National Credit Act – useful if things go wrong and you need to escalate a complaint.

Suitable for a wide range of incomes

Capitec allows consolidation through personal loans for salaried, self-employed and multiple-income earners, using different documentation sets to prove income.

Part of a broader debt landscape

South African household debt is substantial – official data shows household debt around 41% of GDP in mid-2025. Independent research also estimates roughly 12 million adults are over-indebted. In that context, going through a regulated bank with clear processes is safer than informal or unregulated “loan rescue” schemes.

Transparent about risks

Capitec’s own consolidation guides highlight that consolidation is not a magic fix: it can free up cash and simplify payments, but you must avoid taking new debt, and a longer term may increase your total interest. That honesty is important when you’re already under pressure.

FAQs

1. What is a Capitec consolidation loan?

A Capitec consolidation loan is simply a Capitec personal term loan used to settle multiple existing debts (credit cards, store cards, personal loans) and replace them with one new loan and one monthly instalment. You select “Debt consolidation” as the reason for credit when applying.

2. How much can I consolidate with Capitec?

Officially, Capitec’s term loan tables show personal loans up to R500 000 with terms up to 84 months. The exact amount you can consolidate depends on your income, expenses, credit profile and how much existing debt you have. Many clients end up consolidating somewhere in the R50 000–R250 000 range, but higher amounts are possible if your affordability allows.

3. What interest rate will I pay?

Capitec uses personalised interest rates. Current term-loan examples show minimum rates from about 12.25% per year for lower-risk clients, with upper ranges in the mid- to high-20s depending on the loan size and term. Your exact rate is only confirmed after a full credit and affordability check.

4. Can consolidation reduce my monthly payments?

Yes, in many cases. By combining several short-term debts into one longer-term loan, your total monthly instalment can drop. A longer term can reduce your monthly amount but increase total interest over time, so it’s a trade-off between breathing space now and total cost later.

5. Does a Capitec consolidation loan protect me from legal action?

No. A consolidation loan itself does not give the same legal protection as debt review. If you are already in legal trouble or have judgments, a bank may decline a consolidation loan. However, if consolidation helps you get current and stay current on your payments, it can reduce the risk of future legal action.

6. Can I include my car or home loan in a Capitec consolidation?

Generally, consolidation loans focus on unsecured debts (credit cards, personal loans, store accounts). Vehicle finance and home loans are usually secured debts and are normally left outside the consolidation. You might be able to refinance a home loan separately, but that’s a different product with its own risks.

7. Can I apply if I’m self-employed or have multiple income sources?

Yes, but the documentation is stricter. Capitec has specific requirements for business owners, informal traders, freelancers, rental income earners and others – usually more bank statements, accountant letters and proof of trade or rental.

8. What documents do I need for a consolidation loan at Capitec?

For a standard salaried applicant:

• Original SA ID (18 or older)
• Latest salary slip
• Latest 3 months’ bank statements showing salary deposits (if you don’t get paid into Capitec)

If you are self-employed or have other income types, extra documents apply as per Capitec’s “credit for multiple income earners” guidelines.

9. How long does it take to get a Capitec consolidation loan?

If you are an existing Capitec client with salary paid into your account and your credit profile is clean, the process can be very fast – approval in minutes and same-day payout is common. If you are new to Capitec or self-employed, expect extra verification and a turnaround of anything from a few hours to a couple of days once all documents are in.

10. Will a consolidation loan improve my credit score?

It can help over time, but it is not automatic. If you use the new loan to settle your old debts and then keep up with the new instalment (and stop creating new debt), your payment history and lower utilisation can support an improved score. Missed payments on the new loan will harm your score.

11. What if my credit score is already low?

Capitec will still assess your application, but a low score and high debt-to-income ratio reduce your chances of approval and usually mean a higher interest rate. Better credit behaviour and stable employment are key to qualifying for new credit on decent terms.

12. Can I top up my consolidation loan later?

Capitec does allow further credit and top-ups for some clients, but each new loan or increase is subject to a fresh affordability and credit assessment. Taking more credit on top of a consolidation defeats the purpose, so approach this carefully.

13. Is Capitec a safe bank to use for consolidation?

Capitec is supervised by the South African Reserve Bank and regulated by the National Credit Regulator and FSCA. Independent news sources regularly report on its financial results and growth, which provides additional transparency. As with any lender, you should still compare offers and read the contract before signing.

14. How does a Capitec consolidation loan compare to debt review?

• Consolidation loan:
  –One new loan, one instalment
  –You must still qualify on affordability and credit score
  –No automatic court order or legal shield
• Debt review (debt counselling):
  –Court-approved restructuring of all your debts
  –Strong legal protection from new legal action while you comply
  –Heavier impact on your ability to get new credit

For consumers who are already deeply over-indebted, debt review is often highlighted as the more appropriate route.

Capitec debt consolidation loan application

Do I qualify?

You are more likely to qualify for a Capitec consolidation loan if:

• You are 18 or older with a valid SA ID
• You earn a regular income (salary, business income, pension or other provable income)
• You can show affordability once all expenses and existing debt instalments are considered
• Your credit profile is not severely impaired (multiple recent defaults and judgments reduce chances sharply)

Requirements

For salaried applicants (typical consolidation case):

• Original SA ID
• Latest salary slip
• Bank statement showing your latest 3 consecutive salary deposits (if salary is not paid into Capitec)

For self-employed / multiple income earners, Capitec may require:

• 3–6 months’ bank statements (personal and/or business)
• Accountant letter
• Proof of trade (invoices, receipts)
• Supporting documents for rental income, maintenance, allowances, etc.

Process

1. Prepare your numbers
   • List all debts, balances, interest rates and monthly instalments.
   • Decide what you want to consolidate (usually unsecured debts).
2. Get an estimate
   • Use the Capitec credit calculator or app “Get estimate” function to see a likely loan amount, term and instalment.
3. Apply
   • On the app or online, by WhatsApp (067 418 9565), by phone (0860 66 77 89), or at a branch.
   • Choose “Debt consolidation” as the reason for credit if available.
4. Provide documents
   • Upload or present your ID, payslip and bank statements, plus any extra documents if you’re self-employed or have multiple income sources.
5. Assessment and outcome
   • Capitec runs credit bureau checks and an affordability analysis.
   • You receive a personalised offer (amount, term, rate, fees, insurance).
6. Settlement and payout
   • If you accept, Capitec disburses the loan. In many consolidation cases, they will use the funds to settle your listed debts, or you will settle them according to the agreed plan.
7. One new payment
   • A single debit order replaces the multiple prior instalments.

Timeline (typical)

• Same day: Quick app estimate, application and conditional approval for clean-profile existing clients.
• 1–3 working days: More complex cases (self-employed, new to bank, missing documents) and the time needed for settlement of external debts.

Large consolidations or borderline affordability cases can take longer, especially if extra documentation or manual checks are required.