A rate needs a period and calculation method. Do not compare a daily percentage with an annual percentage as if they describe the same price.
What to check
- Rate period
- interest calculation and total quoted repayment
Use the written quote to separate cash received, scheduled payments and charges outside those payments. Keep a calculation with each quote.
A decision to avoid
Multiplying a headline percentage without checking how the lender calculates interest.
A calculation you can check
Illustration only: cash received R2 000; three payments of R750; a separate required charge of R50. Total paid = 3 × R750 + R50 = R2 300. Difference from cash received = R2 300 − R2 000 = R300. This difference is not an annual interest rate. Include the charge only if it is outside the three payments; do not count it twice.
Questions about this decision
What should I check first?
A rate needs a period and calculation method. Do not compare a daily percentage with an annual percentage as if they describe the same price.
Which information do I need for this decision?
Rate period, interest calculation and total quoted repayment.
Which mistake should I avoid here?
Multiplying a headline percentage without checking how the lender calculates interest.
How do I check rate period?
Locate the actual dated record for Rate period. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
How do I check interest calculation and total quoted repayment?
Locate the actual dated record for interest calculation and total quoted repayment. Compare it with the other records in this checklist; ask the organisation responsible for any unexplained difference.
What should I do if a required detail is missing?
Mark it as unresolved. Ask for that precise detail before choosing; do not substitute an advertised example for your own document.
What is the next practical step?
Use the written quote to separate cash received, scheduled payments and charges outside those payments. Keep a calculation with each quote.
How can I verify the explanation?
Use the documents listed above. Check quoted amounts and dates in the original record; use the official reference links for the organisation’s guidance.
