A personal loan is a sum of money borrowed at a certain interest rate and repaid over a set period of time. Even if you have low credit, personal loans can help you consolidate debt, enhance your house, or pay off credit cards. A personal loan can be obtained via a bank, credit union, or internet lender.
As things get more difficult for all of us, people might find themselves in need of some assistance to get you through a precarious economic period. Maybe your automobile struck a bump and need fixes, or perhaps a family issue has left you cash-strapped.
Regardless of your case, you’ve definitely considered if a personal loan is the best option for you to get through these difficult times.
01. Standard Bank Personal Loans
Standard Bank is one of the oldest and well established banks that offers various financial products and services, among them personal loans, home loans, vehicle loans, business loans just to mention a few. Their personal loans go as much as R300 000 with a repayment term of up to 72 months, and an annual percentage rate (APR) that is capped at 24.75 percent.
Find out more about Standard Bank Personal Loans.
02. ABSA Personal Loans
ABSA Personal Loans are financial solutions tailored to meet your financial needs, no matter what your goals are. The amount of the loan offered by ABSA and the time it takes to repay it are both flexible, giving as much as R300 000 in cash and repayment terms of up to 84 months.
Find out more about ABSA Personal Loans.
03. Capitec Personal Loans
Capitec Personal Loans are loans of up to R250 000 which may be taken out to help you achieve any of your financial objectives, whether it’s for your child’s education, home improvements, automobile purchases, or vacation expenses.
Capitec allows you to choose your desired amount, repayment terms and enjoy the benefits of loan terms of up to 84 months and low interest rates.
Their personal loans can also allow you to consolidate all of your existing debts to make one single.
Find out more about Capitec Personal Loans.
04. Old Mutual Personal Loans
Old Mutual Personal Loans are among the most trusted credit solutions on the market offered by South Africa’s oldest financial services company. Their loans go as much as R200 000 with flexible repayment terms and easy application processes.
Old Mutual also provides consolidation loans that will let you settle all your existing multiple debts and have them cleared, and can easily be applied for online or at your nearest branch.
Find out more about Old Mutual Personal Loans.
05. Direct Axis Personal Loans
Direct Axis Personal Loans offer up to R200 000 and are valuable credit solutions that can assist you meet personal and family financial requirements. You can easily apply for Direct Axis loans online in a secure and simple manner, and when your application is approved you will be able to access your money within 48 hours.
Find out more about Direct Axis Personal Loans
06. Sanlam Personal Loans
Sanlam South Africa offers a fixed-rate personal loan of up to R200 000, and offers flexible repayment terms that are tailored around your financial situation.
People looking for personal loans from Sanlam can easily lodge in their application online by filling out the application provided on their website, and their consultants are there to assist you with any questions you have.
Find out more about Sanlam Personal Loans.
07. Nedbank Personal Loans
Nedbank provides you with personal loans of up to R300 000 at a competitive interest rate, tailored to your specific financial needs, while also ensuring that you keep a strong credit history.
These personal loans can be applied for easily from their website or nearest branch, and their repayment terms are flexible.
Find out more about Nedbank Personal Loans.
What Is The Purpose Of A Personal Loan?
Microfinance is a term used to describe a type of personal loan. Unlike overdrafts and credit cards, they aren’t intended to be major secured loans like mortgages and autos, and they’re for a particular sum borrowed over a certain length of time. Smaller set sums are instead utilized for maintenance, particular purchases, unforeseen needs, and maybe debt consolidation.
There are two sorts of personal loans: secured and unsecured personal loans. Within these two categories, there are a number of loans available, each tailored for a unique purpose.
Interests and admin costs will rapidly build up, and you’ll be required to repay the original money plus all of these within the agreed-upon time frame, or face severe penalties.
Personal loans in South Africa have much higher interest rates than loans with collateral security (such as a house or car), simply because they are riskier for the lender- after all, they are simply taking a calculated risk that you will repay the loan, and they don’t have that asset to sell if you default!
Use this form of loan if you want to consolidate your debts and rearrange your payments in a more favorable way for yourself, or if you need money right away for an emergency. If you can live without the item you’re contemplating buying, it’s best to wait until you have real money in your bank account.
Obtain a personal loan for situations like unanticipated medical expenditures, burst geysers, and other situations that will have too much of an impact on your everyday life to wait.
Where you might be tempted to keep borrowing than you need and spend money on things which aren’t necessary or planned, it’s also critical to do your homework, always choose best loan company or bank, understand exactly what interest and fees you’ll be charged, and ensure your total loan is in line with the expenditures you’ll be facing.
What Is A Personal Debt Consolidation Loan?
A debt consolidation loan allows you to consolidate all of your debts into a single loan after that. This is neither a sequestration (bankruptcy) or a debt review; rather, it is a reorganization of your current debt in which all of your little sums owed to various institutions are paid off, and you instead make payments toward a single long-term loan at a more manageable rate.
Usually, you’ll be able to make a lesser minimum repayments on your debt consolidation loan than you were before, and you can choose an extended payment time to allow yourself some room to maneuver and minimize your monthly financial strain.
Getting A Personal Loan in South Africa
Many South African lenders will want identification, proof of residency, at least three months’ worth of payslips, and potentially bank statements.
Self-employed individuals seeking a personal loan will be required to provide additional documentation or may not be eligible for certain loans.
Check your credit score before applying, and contact just a few banks that provide products that are most relevant to your needs, since many applications, especially if declined, can harm your credit record and diminish your chances of acquiring a loan.
Before you take a loan from a lender you’ve discovered, be sure you understand the costs you’ll be paid.