Top Tips: Understanding the Fee and Cost structures

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Did you know?

Lenders usually make more money from their initiation costs and service fees than they make from the interest charged.

That's a scary thought, since interest can compound quite a bit!

Fortunately, Fincheck takes all of these fees and costs into consideration when calculating your loans and repayments. We account for all the unusual costs before giving you the option to choose the best suited lender for your needs.

The fees charged by lenders are regulated by the National Credit Regulator (NCR) legislation. The NCR sets maximums on the fees the lenders are allowed to charge. This prevents them from overcharging you.

Here is a list on some of the fees charged, so you know what you are paying for your loan

  • Initiation Fees is the amount charged to initiate your loan.
  • Service and Administrative fees is the amount charged per month for administrative purposes.
  • Prepayment charge is charged when you pay off your loan earlier than your decided repayment date.
  • A late payment penalty is charged when you make a late monthly instalment.
  • Insurance is not always needed but for some lenders it is required. It is a fee that you pay which insures the lenders against default payments and loans.


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Fincheck is a financial comparisons website that organises information to assist the borrower in making their best financial decision.

Fincheck gathers information from numerous banking partners and presents it to the borrower in a simple, understandable way. Lenders benefit from an additional market place and extensive customer reach. Loan amounts vary from lender to lender. Fees, interest rates, loan amounts and credit scores influence the repayment terms. Lenders require personal details to control their risk and assist the government to combat theft, money laundering, terrorism. Fincheck does not endorse any particular product or company. We are an independent company. The information shown and provided is an opinion, based on numbers and must not be seen as advice or consultation.