Should you apply directly at your bank, or use a loan comparison service? Both have advantages. Here's an honest comparison.
What's the difference?
At your bank you apply once and get one offer, based on that bank's own assessment. Through a comparison service you fill in one application that is shared with several lenders, and choose the best offer.
Pros of going directly to your bank
- Your bank already sees your salary and account history
- Existing clients may get preferential rates
- Face-to-face service in a branch
Cons of going directly to your bank
- Only one offer, so you don't know if it's competitive
- Comparing several banks yourself takes time
- Each separate application can register a credit enquiry
Pros of a comparison service
- One application, several offers from NCR-registered lenders
- Lenders compete for you, which can mean a lower rate
- Free – the service is paid by the lenders
Cons of a comparison service
- You still need to read each lender's terms carefully
- It doesn't give personal financial advice
- Your details are shared with partner lenders (with your consent)
The difference in numbers
A loan of R50 000 over 36 months, including the initiation fee and monthly service fee:
| Interest rate | Monthly instalment | Total repayment |
|---|---|---|
| 18% | R1,920 | R69,130 |
| 24% | R2,078 | R74,809 |
Six percentage points cost R158 more per month – or R5,679 over the full term. That's why comparing pays off.
How a comparison service works
- You fill in one short application
- Your request is passed on to NCR-registered lenders
- Lenders assess it and send you offers
- You compare and choose – or say no thanks
- You finalise the loan directly with the lender
Conclusion
Going to your bank can work well if you already have a good offer. But to be sure you get competitive terms, comparing is the smarter choice – and with Lendova it takes only a few minutes.