Look beyond the interest rate
The instalment is one number. The cost of borrowing is the whole picture.
What are you paying for?
A loan repayment can include principal (the amount borrowed), interest, once-off fees, recurring fees and insurance. Ask for every component in writing. A low advertised rate does not explain all of them.
Compare the same amount and term
Compare net money received, repayment dates, the number of instalments and total repayment. A longer term can make each instalment smaller while increasing the overall cost.
Check how fees work
A financed fee becomes part of the balance on which interest may be charged. A fee deducted before payout reduces the cash you receive. Monthly charges add to each payment. Do not count a financed fee twice.
Try an example
Our anonymous loan estimator uses equal monthly periods and an assumed rate. Change the amount and term to see the effect. Its examples are educational and are not approved Afripro offers.
Explore the idea yourself
Try a money toolSource context: Lesotho Bureau of Statistics · Central Bank of Lesotho. Current product and legal requirements need separate review.