BORROWING BASICS · 3 MIN READ
Fixed and variable rates, explained
Understand what can change during the life of a loan.
A fixed rate
A fixed contractual interest rate stays the same for its stated period. Check whether other charges or insurance can change and how the agreement treats them.
A variable rate
A variable rate can move according to the agreement’s reference and rules. Ask how often it changes and how that affects repayments.
Read the offer
Rate conventions matter. A nominal annual rate divided by twelve is different from an effective annual rate converted to monthly periods.
Examples use ZAR. No current market rates, fuel prices or CPI values are claimed. This is general education, not a personalised recommendation.
Explore the idea yourself
Try a money toolSource context: Statistics South Africa · DMPR fuel publications · National Credit Regulator. Current product and legal requirements need separate review.