Car Title Loans with Low Interest Rates

Car Title Loans with Low Interest Rates

Be aware that different car loan companies may all charge different interest rates and apply different fees.

If you shop around carefully, though, it is possible to get a car title loan with a reasonably low interest rate.

What to watch out for when getting a car title loan

It’s important to make sure you fully understand what terms a lender is offering before you sign the dotted line.

Make sure you won’t be subject to any of the following.

Ridiculously high interest rates on car title loans

Car title loans from unscrupulous lenders may come with excessively high interest rates.

Don’t feel pressured into taking any loan with an unreasonable interest rate. Even if you need funds urgently, take the time to find another, more competitive loan option.

Avoid any loan for which you’re given a weekly or monthly interest rate, or that’s associated with ridiculously high penalties if you run late with a payment.

Misleading interest rates

Car pawn companies may give you interest rates that are confusing, or even intentionally misleading.

In South Africa, even the country’s leading banks are frequently criticised for publishing misleading interest rates.

To make their rates appear better (especially in relation to their competitors’ rates), they may quote simple instead of compounded rates, or effective rates instead of nominal ones.

It can even be unclear whether or not an interest rate is, in fact, an annual rate.

When considering a car title loan, just be careful not to make any assumptions.

Hidden costs for car title loans

It’s not only the interest payable on a car title loan that’s relevant. Car pawn companies may also charge a range of hidden costs.

For example, these can include so-called administrative fees, a fee to store your vehicle during the loan term and a penalty fee if you choose to settle the loan early.

What to ask when considering a car title loan

If you think you’ve found a company that offers car title loans with low interest rates, just make sure you ask the right questions. Ensure it’s clear what the loan will really cost you.

For example, ask questions like these:

  • Is there any upfront fee for getting a loan and if so, how much?
  • Exactly how much will the monthly repayment be (in total) if I go ahead?
  • Is there any other charge?
  • What will happen if I miss a payment?

Finding a car title loan with a reasonable interest rate

The car title loan industry includes its fair share of unscrupulous lenders. That doesn’t mean there aren’t decent lenders out there, however.

Pawn My Car offers car title loans with reasonable interest rates that comply fully with the terms set by the National Credit Regulator (NCR). We also don’t charge any hidden or “extra” fees.

Reasonable interest on a car title loan

The interest payable on a car title loan will never be as low as, for example, the cost of borrowing against the bond on your home.

Car title loan interest rates are also usually slightly higher than those for short-term, personal bank loans.

Depending on your situation, this may be offset by certain advantages.

For example, car title loans aren’t subject to eligibility requirements like your current employment status or credit score. They pay out faster, are completely confidential and – unlike bank loans – don’t affect your credit rating.

With Pawn My Car, you can use a car, bakkie, truck or boat that’s in your name to secure a loan quickly and easily, with no delays or laborious paperwork. For more information about a car title loan with a reasonably low interest rate, contact us on 086 172 9648 or simply complete and submit our online application form.

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APR & Loan period

Fixed rates range from 36% to 60% APR and payment options range from minimum 3 to maximum 24 months. Apart from the initiation and monthly fees shown below, the only additional fee is credit life insurance if the borrower does not have this already.


All accounts may be renewed if they are up to date.


All payments are made via EFT or direct deposits into Lamna’s bank account. There are no debit orders.


Non-payments may result in the matters being escalated.

Illustrative example

Client borrows R10,000 for 90 days.

Repayment Terms
Monthly Repayment
Total Repayment
Monthly Fee
(Interest + Service Charge)
Loan Amount


Repayment Terms

3 Months

Monthly Repayment


Total Repayment


Initiation Fee


Monthly Fee (Interest + Service Charge)