How is my Credit Life premium calculated?

Your monthly credit life premium is calculated against your outstanding loan balance using the insurer's rate per R1,000 of cover. At eKasi Pay Credit the rate is R4.50 per R1,000 — so on R5,000 of cover the premium is R22.50 a month. This is the legal cap for short-term, unsecured credit; anything higher is unlawful.

How is my Credit Life premium calculated?

Your monthly credit life premium is calculated against your outstanding loan balance using the insurer's premium rate per thousand Rand of cover.

The formula is simple:

Monthly premium = (cover amount ÷ 1 000) × premium rate

For example, on a R5 000 loan with a rate of R4.50 per R1 000:

(5 000 ÷ 1 000) × 4.50 = R22.50 per month

Three important rules apply:

1. The premium can never exceed the cap set by the National Credit Regulations (currently R4.50 per R1 000 of deferred amount for short-term and unsecured credit). Any insurer that quotes higher than the cap is breaking the law.
2. Long-term insurance is VAT-exempt in South Africa, so no VAT is added to your credit life premium.
3. The cover amount can never exceed your outstanding balance plus your initiation fee. You aren't insured for more than you owe — so you can't profit from a claim.

The full premium breakdown is shown on your loan quote and again on your signed policy schedule.

For the full cost picture, see our loan costs and fees page and What is Credit Life Insurance?