How loan repayments actually work in South Africa
Once your loan is paid out, you repay the credit provider — not Lumo Loans. Here's how the mechanics work, in plain language.
The debit order
Almost all South African personal loans are repaid by debit order — the credit provider automatically pulls the instalment from your bank account on an agreed date each month. Most providers use DebiCheck, which requires you to confirm the debit order via your banking app when the loan is set up.
Payment dates
Usually your salary date or the day after. If you're self-employed, you'll agree a date that suits your cashflow. You can normally change the debit date with your credit provider by getting in touch.
What if a debit order bounces?
- Your bank will usually charge a failed-debit-order fee
- The credit provider will normally try again a few days later
- Your credit profile can be affected if the payment stays missed
- Fees and interest continue to accrue on the outstanding balance
If you know you can't pay this month
Contact the credit provider as early as possible — before the debit fails. Most are able to arrange something (a payment holiday, a partial payment, a revised plan). Ignoring it makes things worse; they can't help what they don't know about.
Settling early
Under the NCA, you have the right to settle your loan early. The credit provider must give you a settlement quote showing the outstanding balance plus any allowed early-settlement fee. Early settlement usually saves you interest.
Lumo does not collect repayments
To be very clear: Lumo Loans never collects loan repayments. All repayments are made directly to the credit provider you sign an agreement with. If anyone claiming to be from Lumo asks you for a repayment, don't pay — contact us immediately.
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Lumo Loans is a loan enquiry and referral service. We are not a credit provider. Any loan is subject to the credit provider's own criteria and affordability assessment, in line with the National Credit Act.