ABSA Personal Loans | Interest Rates and Associated Fees

ABSA Personal Loans are some of the most sought after credit solutions popular among South Africans, giving you the access to various financial solutions that will allow you to live the lifestyle that you want.

Whether you want a loan to purchase your dream vehicle, money to buy your first house, want to finance your long overdue holiday abroad, ABSA has got a tailored credit solution for you.

A Brief History of ABSA Bank

ABSA Bank was founded in 1991 and is part of the ABSA Group Limited which is a South African based financial services conglomerate, giving their clients various personal and business banking services, corporate and investment banking, wealth and investment management services.

ABSA Bank is listed on the Johannesburg Stock Exchange and its vast footprint covers countries such as Botswana, Kenya, Ghana, Mozambique, Mauritius, Seychelles, South Africa, Tanzania, Uganda and Zambia.

It has representative offices in Namibia, Nigeria, London and New York.

What ABSA Personal Loans are on offer?

01 – ABSA Personal Loans
These personal loans from ABSA can help people looking for some financial boost to their finances, giving them as much as R350 000 with personalized interest rates and repayment terms that suits their unique situation.

ABSA has one of the longest repayment terms on the market, giving its customers as much as 84 months compared to its competitors which give an average of 60 months for their personal loans.

Whats good about ABSA Personal Loans is that you have the option to consolidate all your existing smaller loans and remain with one manageable loan, giving you benefits such as lower interest rates and flexible repayment terms.

Annual Percentage Rate (Interest Rates and Associated Fees)

ABSA Personal Loans come with a personalized annual percentage interest rate of +17.5%, depending on your credit score.

If you take a R350 000 with a repayment term of 84 months at 18% interest rate you will pay an estimated R8 675.62 in monthly installments, with a service fee of R69 and initiation fee of R1 207,50.

Interest rate that is charged on your loan will depend on your own credit score, but you can use ABSA’s loan calculators to calculate how much you will repay on your loan.

02 – ABSA Revolving Loans
ABSA Revolving Loans are another form of ABSA Personal Loans that people looking for finance can apply for, with the advantage of giving you a continuous line of credit provided you have repaid back at least 15% of the original loan.

As its name suggests this loan type has an indefinite loan term which means you can still apply for the money you have paid back on a continual basis without the need to apply for a new loan.

Revolving loans offer as much as R150 000 with fixed repayment terms, and a minimum of 12 month loan term.

Annual Percentage Rate (Interest Rates and Associated Fees)

If you take out a loan of R150 000 your monthly repayments are estimated to be R3 750, with an initiation fee of R1 050, and a service fee of R69. Interest rates are personalized based on your credit score up to a maximum prime rate of above 14%.

03 – ABSA Overdraft Loans
ABSA’s Overdraft facility gives you a flexible cover of up to R250 000 for those unexpected rainy days when you need quick access to cash for emergencies.

ABSA Overdraft Loans are a revolving credit facility that is linked to your Cheque account and can access it anytime you wish, provided you are eligible for the facility.

Whats beneficial about the Overdraft facility from ABSA is that it also helps you maintain a good credit history and ensures that you don’t experience debit reversals due to insufficient funds.

The overdraft limit will be pre-set at the branch and is reviewed annually, and you wont pay for the facility if you don’t use it.

If you have an overdraft limit of R20 000 for example and you use the whole of it you will pay an estimated monthly installment of R 235.67 at 10% interest rate, R 319.00 at 15% interest rate and R 402.33 at 20% interest rate.

The monthly repayment in the above illustration will be determined by your individual credit score.

04 – ABSA Home Loans
ABSA Home Loans are one of the easiest ways of making your home ownership dreams a reality, giving you as much as 100% finance on your home, and a choice to choose between fixed or variable interest rates.

Whether you buying your first property or purchasing a property to rent out, ABSA has a tailored home loan package for you.

05 – ABSA Vehicle Loans
Looking for finance to purchase the car you have always wanted to have?

ABSA has tailored vehicle loans that will allow you to purchase any car of your choice.

ABSA has four vehicle finance options that are Installment Sale Agreement, Lease Agreement, Rental Agreement and Islamic Vehicle Finance.

Installment Sale Agreement allows you to own the vehicle while you are paying it off, with an option to choose a finance term of 24 – 72 months. Benefit from reduced monthly installments by choosing a balloon payment or paying a deposit.

Lease Agreement gives you the vehicle to use for the lease period, and gives you the option of buying the vehicle at the end of the lease period without any obligations.

Rental Agreement allows you to drive the vehicle of your choice without the hassle of ownership, and comes with affordable fixed monthly payments.

Benefits of ABSA Personal Loans

Easy Online Application
The loan application process for personal loans is quick, flexible and are accessible on their digital platforms that include online banking, banking app and cellphone banking.

Higher Loan Amounts
Unlike its competitors ABSA offers much higher loan amounts of up to R350 000 which you can get transferred into your account immediately.

Competitive Interest Rates
ABSA’s interest rates on their personal loans are among the most competitive on the market, tailored to suit your credit profile.

Credit Protection Plan
ABSA Personal Loans come with a Credit Protection Plan that covers your outstanding loan balance in the event that you are no longer able to continue paying off your loan due to circumstances such as retrenchments, disability or death.

Consolidate Your Debts
With ABSA Personal Loans you can consolidate your smaller loans and have them paid off, leaving you with a much more manageable single loan, with lower interest rates and more savings.

How to qualify for ABSA Personal Loans

Basic requirements to qualify for personal loans include the applicant being in possession of a South African Identity Document, proof of residence and latest 3 months pay slip or bank statements.

You can conveniently apply for these personal loans in person at any of your nearest ABSA branch, online or by calling their agents on 0860 100 372.