What do I need for a Personal Loan? | Online Application

What do I need for a Personal Loan? | Online Application

Do you need an extra hand to achieve your goals? Don’t feel bad about it; we all do. Personal loans were created specifically for that purpose: helping people attain their objectives. In this article we are going to talk about different types of loans. We will explain to you what these loans are for, and we will help you answer the question most of us share: what do I need for a Personal Loan? Also, the best credit lending companies in South Africa will be discussed.

What to do if I Need a Loan Urgently Today in South Africa?

If you have an urgent need for money the best way to go about it would be avoiding traditional banks. These institutions tend to lend higher amounts of money and, thus, they usually take a longer time to process loan applications.

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2 Ways to Find Easy Instant Personal Loans in South Africa

As we said above, banks might not be the best solution when you need to get a loan right away. This urgency might be due to an unexpected and serious circumstance, for instance, a member of your family needing medical care. In these cases, money is needed on the spot and you cannot afford to wait the times of the bank.

You have two options:

  1. Online Credit Companies, such as Lime24. With this provider you will be able to have the money on your bank account in minutes!
  2. Pawn shops like Cash Converters or Cash Crusaders. These loans are secured against a valuable: your phone, an electrical household appliance, machinery, jewelry, and more. You bring your item and take out your loan instantly.

The Best 2 Banks to Apply for Personal Loan Options in South Africa

Although asking for a loan at a bank might take you more time, there is hardly any other option where you can request high amount of money and in the most secure way. Banks will be able to lend you amounts that you’d rarely find with online creditors or pawn shops. Moreover, the interest rates that a bank can offer you can also be considerably lower.

Now, let’s talk about the best 2 banks to ask for a personal loan in South Africa:

  1. African Bank is a locally controlled bank authorized as such by the South African Reserve Bank. This institution offers excellent personal loans that can be of a maximum of R250 000. It offers flexible term and fixed installments, so that you know from the very start how much money you will have to pay each month.
  2. The First National Bank belongs to the “Big Five” banks of South Africa and was founded in 1838. Impressive, right? FNB belongs to FirstRand Limited, a holding company. The experience they have gained over these 182 years allows this company to offer the best loans in South Africa and if you want to request a personal loan with them, you will be able to ask for up to R300 000.

What are Long Term Personal Loans in South Africa?

Most personal loans in South Africa are unsecured

Many of these unsecured personal loans are also for a long term. This means that you will be able to repay the loan in a period that ranges from 1 to 6 years.  

What is the Shortest Period of Loan Repayment?

Payday loans are one of the loans with the shortest period of repayment. These loans are the ones that you request when you have an urgent need for cash due to an emergency or an unexpected expense. For example, the one you take out when you need to fix your motorbike ASAP to go to work. These loans are called this way because you use it until you are paid your salary and the term can usually range from 4 to 35 days.

What is a Personal Loan Payment Holiday?

In exceptional circumstances, many banks offer their clients to take a break on the payment of the installments for the loans they have requested. Usually, this payment ranges from 1 to 3 months; however, this might vary from bank to bank. This will allow you to use the money from the installments to cover the urgent and unforeseen expense you need to incur in. Of course this does not mean that you will not have to pay for those installments at all. Fort this reason, it is very important that you request this payment holiday if you really need it.

Is it Necessary to Take out Personal Loan Insurance Cover?

With most banks you will be required to purchase insurance cover for their personal loans. However, these banks usually offer these insurance plans themselves. You can either take out their cover or buy the insurance cover you want that has the same characteristics as the one offered by the bank.

For instance, if you take out a personal loan at Standard Bank, you will have the option of purchasing their Loan Protection Plan. With this coverage if you are unable to pay off the loan due to a permanent disability or death, your loan will be settled. In this way, you will be able to enjoy peace of mind of knowing that you are protecting yourself and your family.

What is an Initiation Fee when Taking a Loan?

When you request a loan at a bank, you need to also take into account expenses other than the installments of the loan. In order to enter into this commercial agreement with the bank, you will also need to pay an initiation fee. This is an expense the bank charges you for starting your application and processing all paperwork involved in your loan. The National Credit Act stipulates the maximum percentages a bank can ask on these fees.

How long does a Loan Approval Take?

This period will depend on the specific credit lending company. As we discussed above, online credit lending providers can approve your loans in minutes. However, banks take longer to approve loans; usually a week or two.

What Kind of Loan can be Found at GBS?

GBS Mutual Bank is one of the oldest commercial banks of South Africa. It was established in 1877 and hasn’t stopped providing its services ever since. Despite the big bank crisis of 1999, they were able to overcome the crisis and open three branches in Cape Town, Port Albert, and Port Elizabeth. With this company you can find Mortgage loans to buy the house you always dreamed of, commercial mortgages to purchase a property for your business, or other loan options such as bridging loans.  

Is HBZ Bank a Legit Provider to ask for Loans?

HBZ Bank Limited is a subsidiary of Habib Bank AG Zurich, a bank of Switzerland established in 1967. The HBZ Bank Limited began operating in South Africa in 1995. Even though this bank belongs to a Switzerland bank, all the operations it runs in the South African soil comply with the rules and regulations of this country. For this reason, HBZ Bank is registered with the National Credit Regulator and strictly abides by all the norms set forth in the NCA.

4 Advantages of SA Cash Loans in South Africa

SA Cash Loans allows you to find loans from different credit lending providers. This is a company that charges no fees for their services to clients. Let us check out the four advantages of SA Cash Loans.

  1. Loans at SA Cash Loans can be applied online! You will only need to fill out a form with your personal and financial information.
  2. With SA Cash Loans you can request up to R150 000 that you can repay from 6 to 60 months.
  3. These loans are unsecured. You will not need to pledge any valuable asset to request these loans.
  4. You can choose from several credit lending providers.

What are the Requirements for Personal Loans at Auto & General?

Auto & General offers an excellent opportunity for you to build the present and future you envision for yourself. The personal loans you can find at Auto & General have fixed interest rate in order for you to know what your installments will be like and avoid ugly surprises. The maximum amount you can borrow is R150 000: imagine all you can do with that money! You can finally take that trip you always wanted, or you can use the money to make some repairs at home. That’s completely your call. The loan can be paid back in 1 month to 5 years. Now, let’s check out the requirements you need to meet to qualify for the loans offered by Auto & General:

  • Clear credit record
  • Regular income of at least R5 000
  • Your last three paysilps or bank statements
  • Credit references in good standing
  • Photocopy of your South African ID
  • Information about your bank account
  • Proof of residence

We believe that in this article we were able to answer your question: what do I need for a Personal Loan? You are now aware of the different options you have for personal loans in terms of how urgent you need the money or the amount you wish to borrow. Also, we recommended reliable and well-known credit lending institutions to help you make a more informed decision. 

Preguntas Frecuentes

I need loan to get a bigger house

The type of credit you need to take is a home loan. This loan will facilitate you enough funds to afford such acquisition. Of course, as we are talking about one of the most important purchase a South African citizen can have, the requirements and process are not easy. The bank will carefully verify your economic situation before granting you the loan.

Hi, I need a personal loan. I am 65old

You might think getting a loan will be difficult, if not impossible for you as you are 65 years old. However, it is normal companies accept granting their loans to citizens who are 65 or older. In fact, there are plenty of banks that establish the maximum age to take a loan in 75 years old. As long as you can prove you are given monthly money to cancel the credit, you can apply for a personal loan.

Can I apply for a loan via sms?

You will find banks offering to start the application for a loan through SMS. For example, Capitec Bank is one of them. But, It is important to clarify you will need to present documents that, clearly, can’t be sent via sms. So, sooner or later, you will need to approach the office or send an email to go on with the procedure.

Can I get help from you? Please help me understand how do I get a good deal

Before applying for the loan, go over these 2 points to have the most beneficial experience. To start, be sure to have your documents properly arranged to present the bank and not waste time. Then, remember you have our loan calculator at hand to find out the possible cost of your loan. Besides, you can compare different options to decide on the most convenient for you. Once you complete these points, you’ll have a clear idea on how to get the best deal.

My id is very old and doesn’t always scan, mostly i use my south african passport as i have never bothered to apply for a new id as my work requires that i use my passport more. Will i be able to apply with a passport?

Some South African banks issue their loans to passport holders. Obviously, you will be asked to verify you live in the country with a proof of residence and, that you work and get a regular salary presenting your pays lips. Ultimately, having a new SA ID will help you get everything faster and simpler with most banks so, you may consider update your document either way.

I’m looking for a personal loan to get new furnishing

As regards personal loan, there are a lot of options in South Africa. We can mention some of them like African Bank, FNB, Capitec, Nedbank, Absa and Capfin. An easy strategy to know about the instalments is to use our loan simulator that will show you the cost for your loan with many companies. When you get that information, you will get no trouble on detecting the lowest rate.

I want a loan and i'm from south africa the loan must be R$50,000 without any upfront payment or fee and i will pay it off in 30years if you can help me

Hello, you can certainly obtain R 50 000 with Albaraka since that amount is permitted. However, in order to know whether your salary is enough for such amount you should phone on the following number and let a rep talk about it in detail:086 000 4249

I have a permanent job, salary after deductions is r3500. Which bank should i visit for a personal loan of r20000?

You can contact Finbond so as to apply for its Mid Term Loan, whose maximum happens to be of R 30 000. The maximum will always depend on your ability to repay for it, in this case R 2500 is needed.

Do companies make you pay extra fees?

Only if there are penalizations for not paying installments

When do you pay installments?

On a monthly basis

Are all the rates the same?

Rates are fixed based on each client

Can I please get a loan of 1,000 rand and have it deducted with its interest within 3 months time? I don't have a salary as yet, but I have a job.

Unfortunately, you will not be able to apply for a personal loan of 1,000 rand if you do not have a payslip. Most of the banks will ask you to provide proof of income as the company needs to analyse if you have enough money in your account to pay the loan back. When you show your last payslips and if you have a good credit record, you may qualify for a loan. In this way, the instalment plus the interest rate can be deducted directly from your account. 

How can I get a top-up loan with Capfin?

It is quite simple to obtain a top-up loan with the private company Capfin S.A. as usually the company sends an SMS informing how much money is available for the clients to obtain. The amount of the line of credit will be based according to your income, affordability capacity and also your credit profile. 

I am a student , I receive NSFAS ,can I qualify for R3000 loan?

If you are a student and are receiving financial help by the organization NFSAS, you may qualify for a personal loan of around 3,000 rand providing you comply with the eligibility criteria. Please, consider that the entities will analyse your financial situation, credit profile and affordability capacity in order to determine if you can afford monthly instalments.

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