How to Get a Loan Against Your Car in South Africa
Do you want to know how to get a loan against a car against your car in South Africa? Maybe you’re not able to pay your employees’ salaries this month, or you need additional capital to complete purchase orders? Not to worry, there is a convenient short-term solution.
If you have a paid-off car, you can use it to secure a short-term loan from registered South African credit providers. So let’s look at how to get a loan against your car in 3 easy steps.
Step 1: Choose your Loan Provider
Here are 3 things to do when choosing a loan provider:
i. Make sure that they are NCR accredited
To be registered with the National Credit Regulator, or NCR, means that a company is legally allowed to be a professional lender. Usually, you will see their accreditation listed on their website.
Do you want to know why NCR Registration is important? Find out in our 2026 Guide to Vehicle-backed Loans.
ii. Look at the service reviews and customer testimonials
Finding out other people’s experiences with a company can help you decide whether you are going with the right provider.
iii. Confirm Potential Loan Amount
Before reaching out to your lender of choice, you’ll want to find out how much you would be able to access off of your vehicle.
For instance, TLCLoans offers up to 50% of your car’s value. Make sure you find a loan-to-value ratio that works for you.
Step 2: Get a Car Valuation
After you choose your loan provider, you need to arrange to take your car for a valuation. The loan provider determines the value of the loan against the car.
Do you want to find out more about car valuations?
Documents to take when you get your car valuated
Most loan providers would need the following:
- National ID
- Driver’s license
- Proof of address
- Original vehicle registration document
- Your car’s service book
- Car keys
Step 3: Get Same-day Payout
After approval and the necessary documents are signed, the money will be transferred into your account, and your car will be stored in a safe facility. You will be able to collect your car once the loan has been paid off.
An Example of a Loan Against Your Car
If your car is valued at R150,000, TLC Loans can offer you up to R75,000. Once you have filled in all the required paperwork, we will release the finances into your account within 48 hours. During the Loan period, your car is safely stored in our insured facility.
Typical Repayment Periods
Considering your repayment period is an important aspect of your car-backed loan process. You need to plan for monthly repayments that fit comfortably within your budget.
With TLC Loans, repayment terms are flexible, with most loans structured over a period of 30 to 90 days to suit individual financial circumstances.
Why You Don’t Retain Access to your Car
Pawn-and-drive schemes are illegal in South Africa. They bypass consumer credit laws and protections. This puts borrowers at risk not just of excessive fees but also of losing their vehicles.
Legally compliant lenders aren’t just keeping your car safe, but keeping you safe in the process.
As you can see with these 3 easy steps, getting a loan against your car is a great way to get immediate funds with none of the hassle.
3 Steps for a vehicle-backed loan
1 – Pick a reputable and registered loan provider
2 – Get your car valuation
3 – Collect your funding
Are you ready to start this simple process with an accredited lender?
