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When you take out a loan, the lending rate and total cost should never be a mystery. At Barko, we keep our lending rates and fees clear, regulated, and easy to understand so that you know exactly what you are agreeing to.
How Barko sets its lending rate
Barko’s lending rate is determined in line with the National Credit Act (NCA). This means we do not just decide our interest and fees; they are regulated by law. Our short-term credit pricing always falls within the limits set by the NCA, so you can borrow with confidence knowing our lending rates are legal, ethical, and fully compliant.
What you see is what you pay
Transparency is non-negotiable. Before a loan is granted, Barko explains all interest, fees, and repayment terms in straightforward language. You will first receive a clear quotation that shows the full cost of credit. Only once you understand and accept this quotation, a credit agreement is issued.
There are no hidden conditions. Everything, from the lending rate to the total repayment amount and due date, is set out in the quotation. Our staff is trained to answer questions and to encourage you to make informed decisions.
These interest and fees are as follows:
- Interest: 5% per month on the first payday loan granted to you in a calendar year, 3% per month on subsequent short-term loans that you take 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.
Affordability first, not just approval
Before approving a loan, Barko checks your income, expenses, existing debt (credit check), and employment stability. Barko approves only what you can afford to repay.
How fair lending builds trust
Trust is built through consistency. We offer:
- Clear and transparent pricing
- Regulated lending rates and fees
- Responsible affordability assessments
- Same-day payouts once affordability and agreements are confirmed
By treating you with respect, empathy, and honesty, Barko aims to be a long-term financial partner. Fair lending is not just a promise; it is built into how we set our lending rates, how we price our loans, and how we serve you every day. To learn more or start your short-term loan application, visit Barko’s website.
Terms and conditions apply. All credit is granted subject to a mandatory affordability assessment and credit check.
