Personal Loans South Africa
Personal loans are typically general purpose loans that can be used at the borrower’s discretion to cover anything from emergency expenses to home improvements or special occasions. Personal loans in South Africa are available through a variety of financial institutions, but have recently move online as the application processes are simpler and paperless.
Personal loans are generally more difficult to get and have strict qualification requirements. If you’re thinking about borrowing through a personal loan, here are some things you know about them.
|FNB personal loans start from R2000, with flexible repayment periods of 6 to 60 months.
You also need a minimum salary of R 8350 per month to qualify.
|ABSA personal loans range from R 3000 to R 150 000 and have negotiable repayment terms of up to 60 months. You must have a minimum salary of R 2000 per month to qualify.|
|Capitec personal loans range from any amount up to R150 000, with repayment terms ranging from 1 – 60 months. You also get free retrenchment and death cover which will settle the outstanding loan amount in full when you can no longer repay them.|
|Old Mutual’s main personal loans product, My Money Plan allows you to consolidate debt, combine it into one plan and pay a lower instalment. For loans of up to R 120 000.|
|Nedbank personal loans range from R1 000 to R 120 000. Minimum salary requirements are lower at R 1 200/mth, but you have to be employed with the same employer for 3 consecutive months.|
|African Bank provides both short-term personal loans of up to R 12 000 in cash, with 3-9 months repayment terms as we as long-term loans of up to R 180 000, repayable over up to 84 months.|
|A DirectAxis Personal Loan of up to R100 000 is an unsecured loan that you can pay back over a repayment term of between 2 to 6 years.|
|Standard Bank personal loans range between R500 and R 40 000, with repayment terms on a from three to 42 months. You need to earn a minimum gross monthly salary of R1 000 to be eligible.|
|Wesbank offers an unsecured personal loan from R4 000 to R30 000. You can choose to repay your loan over a period of between 24 and 60 months.|
What Are Personal Loans
Similar to payday loans, personal loans are unsecured loans that do not require any assets or collateral. This means that the personal loan provider is taking greater risk when issuing these types of loans, which is why the approval process is very strict and thorough.
The issues for example can’t seize your house or car when you default your payments, although he can take other collection actions, such reporting late payments to the credit bureaus, hiring a collection agency or filing a lawsuit against you.
How Much Can You Borrow
Personal loan amounts range from R10 000 to R150 000 but the final amount will ultimately depend on the loan issuer and your credit rating. The better your credit score, the more money you can borrow for personal loans. Generally speaking, the loan amount on personal loans is higher than what you can get through a payday loan and repayment periods will be longer.
How Much Do Personal Loans Cost
With personal loans, you pay a fixed interest rate which is agreed when the loan is taken out. In addition to this cost, there can be various penalties associated with personal loans so it’s worth spending some time on reviewing the small print. The interest rate is also linked to your credit rating which means that if you have a better rating, you will essentially pay less for your loan.
Repayment Periods On Personal Loans
Repayment periods are quoted per month and as such run over periods of anything from 5 to 60 months. The longer your repayment period, the lower you monthly repayments but you will also incur the interest rate charge for a longer period.
How To Apply For A Personal Loan
Applying for a personal loan can be a frustrating process as it often requires repeat visits to the bank and tedious paperwork. Applying through various online loan originators can save loads of time, as they run the application through a cursory review and will find the most suitable loan provider given your circumstances.