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When you apply for a loan, “loan fees” can be vague or confusing. At Barko, we believe you should know exactly what you are paying for and why. Our loan fees are regulated by the National Credit Act (NCA) and explained upfront before you sign anything.
Interest and fees in a Barko short-term loan (payday loan)
Every Barko short-term loan includes only the fees and interest allowed by the NCA. These are:
- Interest: 5% per month on the first payday loan granted to a client in a calendar year, 3% per month on subsequent short-term loans to that client within the same calendar year.
- Service fee: R60 per month (excluding VAT).
- Initiation fee: up to R165 + 10% of the capital amount borrowed above R1 000, capped at R1 050 excluding VAT). (Initiation fee capped 15% of the capital amount)
- Mandatory Credit Life cover (Standard Cover at R4.50 per R1,000, or Standard plus Optional Cover at R5.50 per R1,000). You may alternatively substitute this with your own Credit Life cover, subject to our approval and confirmation that it meets the required minimum benefits.
These loan fees are not set by Barko; they are limited by strict NCA guidelines for short-term credit.
Here’s an example:
| Loan Amount | R1 000.00 |
| Loan date (application date) | 1 January 2026 |
| Repayment date | 1 February 2026 |
| Total loan days | 31 |
| Capital (loan amount) | R1 000.00 |
| Initiation fee | R150.00 |
| Deferred amount | R1 150.00 |
| Service fee | R60.00 |
| VAT (Initiation fee and Service Fee) | R31.50 |
| Credit Life Cover (Standard plus optional cover) | R6.33 |
| Interest @5% (first loan this calendar year) | R59.42 |
| Total repayment | R1 307.24 |
This means you would pay back R1 307.24 in total.
No hidden or surprise costs
Barko does not charge hidden or unexpected loan fees. All fees and costs are:
- Explained verbally by a trained professional consultant
- Shown clearly in the quotation
- Included in the written loan agreement before approval
Why regulated loan fees protect you
Because Barko is a registered credit provider, we must follow the NCA’s rules on fees and interest. This protects you by ensuring:
- Fair, standardised pricing
- Transparent loan fees and lending practices
- Access to support and recourse through the National Credit Regulator (NCR) if needed
When you understand your loan fees, you can borrow more confidently and responsibly. Barko’s role is to provide short-term financial support that is clear, lawful, and manageable.
Terms and conditions apply. All credit is granted subject to a mandatory affordability assessment and credit check.
