When you’re considering borrowing money, one of the first questions is: What can I actually use the loan for? With the RCS Personal Loan, you get a great deal of freedom, so technically, you can use your loan in any which way you please.
However, South Africans do typically use personal loans for a number of specific needs, and in this article we will also cover some of those topics.
Emergency expenses: In an article last year, we spoke about some of the top reasons loans are used for in SA, “South Africans often use personal loans as a financial cushion when insurance policies or savings aren't accessible. For example, emergency car repairs or the need to replace household appliances can arise with little notice.”
Given rising inflation, many households find their income stretched and may turn to a personal loan to cover urgent, unplanned costs. For instance, the Citizen noted that in early 2025 “almost all South Africans who applied for debt counselling had a personal loan, consumers are using personal loans to make up the shortfall between income and the rising cost of living.”
Home improvements or renovations: Home improvements are another usual suspect in prompting someone to consider a personal loan. Using a personal loan to upgrade your living space (e.g., kitchen, bathroom, energy-efficient upgrades) is a practical way to add value to your home and enhance comfort.
Education or training: Education is another, and although student loans are an option for certain institutions, there are a variety of ways for people to upskill nowadays, making personal loans a great option for extra studies.
Weddings and significant life events: Weddings are expensive, and personal loans are a trusted source of income to cover this significant life event. A loan can be helpful not only with the cost of putting on the wedding but also travel or honeymoon budgets.
Large purchases: Even if the loan isn’t tied to specific use (like vehicle finance or store credit), you can use personal-loan proceeds to purchase large-ticket items - appliances, furniture, holiday travel, for instance.
The freedom that comes with it
The real strength of an RCS Personal Loan lies in the freedom it gives you. Unlike credit cards that revolve, or accounts with specific use-restrictions, or loans tied to buying an asset, a personal loan allows you to choose what you do with the cash.
You decide: Do you cover that urgent repair? Invest in new training to boost your income? Or perhaps upgrade your home to make your living environment more comfortable? You’re not locked into a category.
This means you can borrow with purpose - and better, you can plan upfront (using a tool like the RCS repayment calculator) to check that your budget can handle the instalments. Freedom isn’t about borrowing recklessly, but about borrowing smartly: choosing the amount, term and purpose that align with your goals.
Things to check before you borrow
Because you have this flexibility, it’s especially important to use the loan responsibly. Here are some key checks:
- Affordability: Ensure your income covers the new instalment plus your existing obligations.
- Term and amount fit: Since terms typically span 12-60 months, you can choose a shorter term (higher monthly cost, lower total interest) or a longer term (lower monthly cost but more interest payable).
- Purpose alignment: Because you have freedom, ensure the purpose actually adds value (or addresses a need) and isn’t just for impulse purchases you’ll regret.
- Interest and cost: Even though flexibility is great, you still pay interest and fees, so be aware of this when you determine how much you want to borrow.
- Plan for repayment: Because it’s unsecured, failure to repay can impact your credit score and future borrowing ability.
How to apply for an RCS Personal Loan
RCS’s process is streamlined. You can apply for a loan online, receive a provisional answer in minutes, and upon final approval funds can reach your bank account within 24 hours.
Loan sizes range from R2 000 up to R300 000. Terms available are between 12 to 60 months. Interest from as low as 15% (rate depends on risk profile).
If you’re considering a personal loan and asking, “what can I use it for?” The answer with RCS is simple: A lot. From home improvements to education, emergency costs to major life events - you’re afforded genuine freedom to decide how you’ll use the funds. That said, with great flexibility comes great responsibility: choose an amount and term you can comfortably repay, align it to a meaningful purpose, and ensure you’re borrowing because it makes sense - not simply because you can.
When used thoughtfully, an RCS Personal Loan can be a powerful financial tool to help you move forward with confidence - not held back by the restrictions of more rigid credit products.
