Direct Talk

When is a Personal Loan a Good Idea

Taking out a personal loan may seem like an intimidating prospect, but if you go through the right channels, and manage your repayments responsibly, borrowing money can enable positive changes in your present and future life. 


TLC presenter Carissa Cupido has made her own success, but this path was by no means always an easy one to walk. As young as she is now, she has already faced some tough financial choices that ultimately helped her along the road to achieving her goals. 

But how did she know what choices were the right ones? How do you figure out which wants are really needs, and which needs are actually wants? No one should have to make these kinds of decisions by themselves, and asking for help means you make a more informed choice.

So before you sign up for a personal loan, make sure you’re doing it for the right reasons. Here are some of Carissa’s tips for knowing if a personal loan is the right move for you..

  1. Can you pay it back? If you don’t have enough income to make the monthly instalments, taking out a loan won’t solve your problem, it may add to it instead.
  2. Can you say no? You may be offered more money than you need, and you need to be able to say no if you don’t really need it. Don’t forget that more money now is more money you have to pay back later. 
  3. Can it solve a problem? A personal loan might be your only option when faced with a medical or other emergency. In this case, try to plan for a maximum future emergency loan amount that you know you’ll be able to repay, and use it as your reference point.
  4. Can it help your career? Will taking out a loan help you buy the necessary tools or items that will take your career to the next level
  5. Does it improve your life? Will the loan add value to an asset, like renovations that could increase the selling price of your home?

Ultimately, when you pay your loan back responsibly and don’t defaults on payments, a personal loan could improve your credit score, and open more doors for you in the future when it comes to needing bigger loans like home loans or vehicle finance loans. Don’t be afraid to borrow money, but always know to ask for help when you need it.

Check out Direct Talk for more stories on life, money and everything in between.


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Your direct connection to Financial Services. DirectAxis Personal Loans 108 De Waal Road, Diep River, 7800. FirstRand Bank Limited (reg no 1929/001225/06), an Authorised Financial Services and Registered Credit Provider (NCRCP20).  Direct Axis SA (Pty) Ltd, an Authorised Financial Services Provider (FSP7249 and FSP7245)  © Copyright 2018 

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Loan repayment terms range from 24 to 72 months. The maximum interest rate with regards to a DirectAxis Personal Loan is 27.75% per annum (compounded monthly). Your rate and initiation fee will be determined according to your personal risk profile.
An illustrative example of a loan at an interest rate of 27.75% per annum would be: Loan amount R50 000 plus a once-off initiation fee of R1 207.50 and a monthly admin fee of R69.00, over 72 months.
The total cost of the loan will be R 110 594.54 which is a maximum Annual Percentage Rate (APR) of 30.98%.