---
title: Interest rate
description: The interest rate refers to the percentage of interest you will be charged on the amount of the loan. For example, if you borrow R100 and have to repay R120, then the interest charged is 12% (R120/R10
---

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# Interest rate

The interest rate refers to the percentage of interest you will be charged on the amount of the loan. For example, if you borrow R100 and have to repay R120, then the interest charged is 12% (R120/R100 x 100). This is a simple example, in most cases you are charged interest on a daily basis and it is accumulative. However, it is up to you to find out the details of loans, preferably from a number of lenders, so that you can compare their charges and find the best deal.

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