Personal Loans: Debt Consolidation, Quick & Easy Application

Are you looking for a personal loan? Do you want to find the best options to consolidate your debt? Personal Loans are possible to get, even with a bad credit score! Check out our guide to personal loan offers below.

UNSECURED PERSONAL LOANS IN SOUTH AFRICA.

Unsecured personal loans are loans that do not require a collateral to qualify. However, you need a good credit score to be approved. Also, your valuable assets will not be affected in anyway if you default in your loan repayment. It is faster and easier to get as long as you meet the requirements.

REQUIREMENTS TO QUALIFY FOR A PERSONAL UNSECURED LOANS IN SOUTH AFRICA.

Every financial institution in the Republic has its requirements. However, below are the general requirements.

• South African identity card.
• Proof if income, usually a 3 month bank statement or pay slip.
• Proof of residence.
• A minimum monthly income which is set by the lender.
• Must be at least 18 years of age.
• A good credit score.

WHAT CREDIT SCORE IS NEEDED FOR AN UNSECURED PERSONAL LOAN IN SOUTH AFRICA?

A credit score of 650 and above is needed to get an unsecured personal loan in South Africa. Some financial institutions might lend you money when you have a lower or poor credit score. However, be ready to pay high-interest rates.

PERSONAL LOAN INTEREST RATES IN SOUTH AFRICA.

The annual percentage rate/interest rate on personal loans in South Africa ranges from 16%-24.9%, but the maximum interest rate for personal loans in South Africa is 27.5% per annum.

HOW YOUR CREDIT SCORE / FINANCIAL HISTORY AFFECT THE LOAN DECISION.

One of the major requirements to get approved for a personal unsecured loan is to have a good credit score/credit-worthiness. Personal unsecured loans do not require you to have collateral. This makes it very risky for lenders to approve your loan. Therefore, a good credit score tells your lender that you have been faithful with repaying your past loans. With a high credit score, lenders believe that you are going to repay your loan.

5 TIPS TO BOOST YOUR CHANCES OF GETTING APPROVED FOR AN UNSECURED LOAN.

Approach the right lender. The right lender that fits your needs gives you a higher chance of getting your loan approved.

Ensure that your credit score is high. Unsecured personal loans are risks to lenders. This is because the lender has no guarantee that you will pay it back. The only way they can be sure that you will repay is to maintain a high credit score. A high credit score tells your lender that you have paid back the loans you borrowed in the past and you repaid on time. Therefore, you can be trusted with a new loan.

Prepare all the necessary documents. An incomplete or wrong document can delay or cancel your application.

Keep your loan term short. A short loan term shows your lender that you are willing to repay their money within a short period. It will boost your chances of getting your loan approved.

Do not ask for large amounts. One of the best ways to get your loan approved is to ask for loans that will not put a strain on your finances and income. Your lender must be able to see that after repayment of your loans, you will still have a substantial amount in your account.

TRENDING FIVE BANKS FOR UNSECURED PERSONAL LOANS IN SOUTH AFRICA.

FIRST NATIONAL BANK (FNB).

FNB’s personal loan is one of the easiest to get in South Africa. You can apply for the FNB personal loan online. This makes the process easier and faster. With your South African ID, your cell phone number and your email address, you are on the way to getting your loan. FNB personal loan comes with a package called “FNB take a break.” This package gives you the option to skip your loan payment in the month of January alone. If your loan payments are up to date, you can decide to take a break from your loan payment in January. This tends to relief you from the occasional financial stress that comes in January. Only those who have not missed any of their instalment payments qualify for this package.

HOW TO GET A PERSONAL LOAN FROM FNB?

Getting a personal loan from FNB is pretty much straight forward and easy. The following questions and answers below will help you navigate your steps to securing a personal loan with FNB.

FNB INTEREST RATES FOR PERSONAL LOANS.

FNB’s interest rate for personal loans starts from 12.75% per annum. However, FNB needs to know where you stand financially before it can set the interest rate for your loan. Also, if your credit history/credit score is right and you do not have existing loans, your chances of getting a lower rate are high.

REQUIREMENTS/HOW TO QUALIFY FOR FNB LOAN.

• You must be older than 18 years old, but younger than 64.
• 3 months’ bank statements.
• Have a permanent job.
• If you are self-employed, you will need to present previous 6 months’ bank statements.
• Your monthly wage must be paid in a bank account.
• South African smart ID.

HOW LONG DOES IT TAKE TO GET YOUR LOAN APPLICATION APPROVED?

FNB personal loan takes a couple of days before it gets approved. But, if there are any issues with your application, it might delay the process for a few more days.

HOW MUCH CAN YOU BORROW?

You can borrow from R1000 – R300, 000.

WHAT IS THE LOAN REPAYMENT PERIOD?

Repayment period is from 1 month to 60 months.

CAN I TAKE AN FNB LOAN IF I DO NOT BANK WITH THEM?

Yes, you can take a personal loan with FNB even if you do not bank with them. However, you will need a bank account to receive your loan and also to repay your loans. Also, your salary has to be paid into your bank account to allow FNB to make a direct debit for your loan repayment.

DOES FNB GRANT PERSONAL LOANS FOR SELF-EMPLOYED?

Yes, FNB grants personal loans to you if you are self-employed. But you will need to present a 6-month bank statement of your income to qualify for a loan.

ABSA.

Absa offers a personal unsecured loan to South Africans. Absa has one of the most interesting interest rate in South Africa. If you are offered a lower interest rates anywhere else, Absa Price Guarantee program promises to beat that rate and give you a lower interest rate from what the competitor is offering. If you ask me, I think that is a big deal.

APPLYING FOR ABSA PERSONAL LOAN.

An existing Absa customer should log-on to Absa Online, to proceed, click on ‘Apply’ at the top tabbed navigation and select ‘Personal Loan’ from the drop-down menu on the page.

Enter your requirements/details and as simple as that. You could have the money in your account in less than 20 minutes. Also, note that collateral is not needed to apply for this loan. Your application will be examined based on your creditworthiness.

If you are new to Absa, all you need to do is apply online or visit the nearest Absa branch to complete the quick and easy form.

REQUIREMENTS/HOW TO QUALIFY FOR ABSA LOAN.

To apply for a smaller personal loan over 2 to 6 months, you need to: Earn a regular monthly income of at least R1 500 per month. Must be 18 years or older. You need an active Absa bank account into which your salary is paid.

To apply for a personal loan over 12 months or more, you need to:

• You must be at least 18 years or older.
• Earn a regular monthly income of at least R2 000/month.
• You must have a bank account into which your income is paid.

HOW LONG DOES IT TAKE TO GET YOUR LOAN APPLICATION APPROVED?

Once you have completed your application, it will only take a couple of days for your loan to be approved. Provided you have a good credit score.

NECESSARY DOCUMENTS TO FACILITATE YOUR LOAN APPLICATION.

• Last 3 months payslips or bank statements.
• Your ID book or card.
• Proof of residence (not older than 3 months).

HOW MUCH CAN YOU BORROW?

You can borrow from R250 – R350, 000.

WHAT IS THE LOAN REPAYMENT PERIOD?

Loan repayment can be between 12 months to 84 months.

NEDBANK.

Nedbank personal loans help you cover your urgent personal needs. If you are thinking of financing your education, home improvement or fixing a car, Nedbank personal loan comes handy.

You can apply for Nedbank personal loan from their offices nationwide, also, you can apply online from the comfort of your home. It takes about 3 minutes to apply through their webpage. Once your loan is approved, Nedbank will deposit the money directly into your bank account.

Below, you will get information about the requirements, rates etc.

NEDBANK INTEREST RATES FOR PERSONAL LOANS.

Nedbank has a customized interest rate. The interest rates are calculated based on the amount you want to borrow and your repayment period. However, Nedbank’s interest rate can go from 17% - 24.50% per annum.

REQUIREMENTS/HOW TO QUALIFY FOR NEDBANK LOAN.

• A minimum basic salary of R3000 per month.
• Proof of residence for FICA (not older than 3 months).
• Permanently employed or employed under a fixed-term contract (not self-employed).
• Your salary must be deposited into your bank account electronically.
• Proof of income (3 months bank statements or payslips).
• South African ID number.

NECESSARY DOCUMENTS TO FACILITATE YOUR LOAN APPLICATION.

• Your South African green bar-coded Identity Document.
• Your latest 3 months bank statements.
• Proof of residence for Financial Intelligence Centre Act.
• Your most recent payslip (s) for one month.

HOW MUCH CAN YOU BORROW?

Nedbank Personal loans are available from R2 000 to R300 000.

WHAT IS THE LOAN REPAYMENT PERIOD?

You get a flexible repayment periods from 6 up to 72 months.

AFRICAN BANK.

The first step to get a personal loan from African Bank is to understand the processes before applying for the loan. You have the choice to apply over the phone, online or by visiting the nearest branch. Once you have applied for the loan, your information will be reviewed, if the loan is approved, the loan amount will be paid directly into your bank account. African Bank also has an offer called “Choose your Break”, with this offer, you have an option to choose a break from loan repayment for a month. This can be a saving grace when you are on a very tight budget.

AFRICAN BANK INTEREST RATES FOR PERSONAL LOANS.

African Bank interest rate for personal loans depends on the amount you want to borrow and also the repay duration. It has a short term personal loan for a small cash injection, but it comes with a high-interest rate. Also, the long term personal loans are for larger amounts which can take several years to repay and it has a lower interest rate. The interest rate can go from 15% - 27.50% per annum.

REQUIREMENTS/HOW TO QUALIFY FOR AFRICAN BANK LOAN.

• South African ID number.
• Your cellphone number.
• Pass affordability and credit scoring assessment.
• Proof of residence for FICA (not older than 3 months)
• Must be 18 years old or older.
• Proof of income (3 months bank statements or payslips)

HOW LONG DOES IT TAKE TO GET YOUR LOAN APPLICATION APPROVED?

You could get an online personal loan offer in 3 minutes.

NECESSARY DOCUMENTS TO FACILITATE YOUR LOAN APPLICATION.

• Most recent proof of income e.g. latest payslip.
• Latest bank statement, reflecting 3 salary deposits.
• Proof of residence.

HOW MUCH CAN YOU BORROW?

With African Bank personal loan, you can borrow from R500 – R250, 000.

WHAT IS THE LOAN REPAYMENT PERIOD?

African Bank flexible repayment plan gives you room to pay from 7 to 72 months.

CAPITEC.

Capitec personal loan works differently. The amount of loan you can get and the interest rate you can qualify for is subject to your income and your credit profile. The higher your earnings, the more money you will be able to borrow, also, the healthier your credit history, the lower your interest rate. To complete a Capitec personal loan application, you can either make a phone call or visit the nearest Capitec branch. However, the easiest way is to apply online. It is faster and saves you time.

CAPITEC INTEREST RATES FOR PERSONAL LOANS.

Capitec lowest interest rate starts at 12.9% - 24.9% per annum.

REQUIREMENTS/HOW TO QUALIFY FOR CAPITEC LOAN.

• A copy of your latest pay slip.
• Proof of residence (document must display your name and your street address).
• A stamped 3-month bank statement showing your last 3 months salary deposits.
• A copy of your South African ID.
• You must be 18 years old or older.
• You need to have a good credit rating. Before approving your loan application, Capitec performs a credit check to see if you have a good credit score.

HOW LONG DOES IT TAKE TO GET YOUR LOAN APPLICATION APPROVED?

You can apply for a Capitec personal loan online. If you qualify, you can get approved in a few minutes. This makes the process fast and time-saving.

NECESSARY DOCUMENTS TO FACILITATE YOUR LOAN APPLICATION.

• Depending on the amount you want to borrow, you might be required to provide your assets, expenses and liabilities as proof that you will be able to pay back the credit.
• Proof of residence, this could be your utility bills or lease agreement.
• Government-issued South African identity document or card
• Proof of income and your latest three months’ bank statements.

HOW MUCH CAN YOU BORROW?

You can borrow from R1000 – R250, 000

WHAT IS THE LOAN REPAYMENT PERIOD?

You can choose from 1 month to 84 months to repay. However, this depends on the amount you borrow.

OUR VERDICT ON THE BEST UNSECURED PERSONAL LOAN IN SOUTH AFRICA.

All the banks have great offers for anyone who needs an unsecured personal loan. However, Absa’s Price Guarantee program gives it an edge over other banks. If you are offered a lower interest rate anywhere else, Absa promises to award you a lower interest rate than any competitors offer. This means that with Absa’s price guarantee program, you will always have the lowest interest rates in the country.

WHEN IS THE BEST TIME TO GO FOR A PERSONAL UNSECURED LOAN?

An unsecured loan can be used for any purpose. However, it is best to get unsecured personal loans when it is necessary. Since they come with a high-interest rate, you should ensure that the loan is used on something of value.

• When there is an emergency: A medical emergency, a broken car or family emergency can prompt you to get an unsecured personal loan.
• To pay for something that gives you value: An Unsecured personal loan can be used to pay for tuition fees or weddings.
• To invest for profit: Unsecured loans can be used to start a small business that will give you more money. You can easily take some profit from your business to repay the loan.

PROS AND CONS OF UNSECURED PERSONAL LOANS.

PROS:

1. Unsecured personal loans are less risky because there is no danger of losing any valuable assets if you can no longer repay the debt.
2. Money borrowed can be used for any purpose.
3. The application process is easier and faster to complete.
4. A repayment plan can take from 1 months to 7 years.

CONS:

1. Unsecured personal loans have a high-interest rate.
2. You have a limited amount to borrow.
3. Unsecured personal loans are not flexible. You have to be committed to repaying specific amounts in instalments, this makes it hard to adjust to a lower repayment plan.

NOTE:

HOW UNSECURED PERSONAL LOANS WORK: Unsecured personal loans are instalment loans, you do not have to use your property or assets as collateral. Also, you will not lose your property if you are unable to pay back the loan.

Due to the high risk associated with unsecured personal loans, unsecured loans usually have high-interest rates. Lenders do not have any of your property to sell when you do not repay your loans, although, lenders can take legal action against you, this will cost them money and time. Because of this high risk, lenders tend to charge high-interest rates on unsecured personal loans.