Arcadia Finance: loan details and how to apply

What Arcadia Finance is

Arcadia Finance is an online loan comparison service for South Africa. It is not a lender and not a credit provider: it does not approve applications or pay out money. Instead, you fill in one online application and receive loan offers from the banks and lenders that work with the service through its loan broker partners. The site mentions up to 19 lenders. Using the comparison is free for the applicant, and the offers are non-binding, so you can accept or decline them. The brand is owned and managed by Draivi Media Oy, a Finnish company.

Loan conditions at a glance

The final amount, term and rate are always set by the lender that makes you an offer. The site gives slightly different figures in different places, for example a maximum of R250,000 on one page and R350,000 in the FAQ, so check the terms shown in your own offer.

Who can apply

• You are over 18.
• You are employed, and your current employment has lasted more than 6 months.
• The loan does not exceed 8 times your monthly income.

Final acceptance depends on each lender's own criteria. A good credit history and sufficient income help.

How to apply

1. Choose the amount you need and enter your email and cellphone number using the "See my offers" form.
2. Submit the application. The form is available 24/7.
3. Review the offers that arrive, compare the rate, fees and monthly instalment, and choose whether to continue with one of them.
4. Complete the remaining steps directly with the lender you choose.

The site says that checking offers is free and does not affect your credit score, although its FAQ describes the impact as minimal to none. An optional tick box lets you agree to receive offers by email and SMS.

What a loan can cost

Under the National Credit Act, the cost of a loan is made up of interest, an initiation fee and a monthly service fee. The site's representative example is R30,000 over 36 months at a maximum annual rate of 28%, which comes to about R1,360 per month including the initiation fee and monthly service fees. Your own quote may be lower or different, so rely on the figures in the offer.

Advantages and drawbacks

• One application instead of several separate ones.
• No fee for using the comparison, and no obligation to accept an offer.
• Offers come from lenders described as NCR-registered.
• Wide range of amounts and terms, from small loans to long-term personal loans.

• It is a broker, so you do not deal with a single company from start to finish.
• No telephone number or support email is published for applicants.
• Approval, rate and fees depend entirely on the lender.

Things to check before you accept

Read the full quote, including the initiation fee, monthly service fee, total repayable amount and the lender's NCR registration. Borrow only what you can repay from your regular income, and remember that a loan with a longer term usually costs more in total.