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Capitec Personal Loan Review 2022

Capitec Personal Loan Summary

Capitec Personal Loan is a loan program designed for those over the age of 18 who have a steady source of income. The interest rate is variable, beginning at 12.9 percent. R250000.00 is the maximum loan amount. Capitec Bank provides fascinating financial solutions to its customers, and its personal loan facility is no exception. Capitec personal loan, also known as Personalized loan by the bank, has only one choice to pick from.

Given Capitec’s age in the industry, this is tolerable. Capitec, one of the top five banks, has narrowed its concentration to one sort of personal loan. This offers them an advantage in constantly refining the loan offering.

Compared to other banks

The Capitec personal loan is similar to term loans offered by other banks. Their personal loan, on the other hand, has longer payment terms than the other big 5 banks. Capitec offers personal loans with repayment terms of up to 84 months. This, however, implies that higher interest will be paid for the additional time. It is simple to apply for a Capitec personal loan.

For mobile app users, the application can take minutes. It may take a day or more for individuals who are not Capitec clients, depending on document availability. Existing Capitec customers are not required to provide documentation when applying for a term loan. As long as you receive your salary/income from the same account.

Capitec bank loan benefits

  • Loan approval within minutes
  • Fixed monthly repayments
  • Interest rates from 12.9%
  • Consolidate all your existing loans for easier monthly repayments
  • Affordable credit insurance including retrenchment and death cover
  • Manage your credit using our app
  • Loan amount of up to R250,000.00 depending on how much you earn.

Interest rate will vary depending on your credit risk. High risk borrowers tend to receive high interest rate because of the risk factor involved. Making sure that your credit score is good will reduce your loan repayment amount.

You can consolidate existing loans to make repayments easier.

Requirements

  • 18 years old or older
  • Proof of income (3 months bank statements or payslips)
  • Proof of residence for FICA (not older than 3 months)
  • South African ID number

It’s critical to follow the Capitec Bank personal loan guidelines. Your credit score is used to determine how much credit you are eligible for. The higher your credit score, the better your chances of getting authorized for the loan. You will benefit from a reduced interest rate if you have a good credit score. With the exception of existing Capitec bank customers, applications cannot be completed without submitting FICA papers.

Your Payslip will be required as proof of work, among other papers.

Credit insurance on personal loans

To qualify for Capitec personal loan, you must have Credit insurance valid for atleast 7 months or longer. The insurance covers death, permanent or temporary disability, unemployment, the inability to earn an income or retrenchment.

Personal loans insurance benefits

  • Insurance contract is valid immediately.
  • No paperwork required when applying.
  • Claim is simple

Personal loan insurance payout

  • Pay full amount owed upon death.
  • A maximum of 12 payments upon temporary disability.
  • Pays out full amount owed on personal loan upon permanent disability.
  • If facing Unemployment, inability to earn income or retrenchment, outstanding loan amount will be paid fort 3 consecutive months.

Capitec insurance only covers those with Capitec personal loan. Insurance holders must be 18 years old. The insurance is restricted to those who are below the expiry age. The expiry age is the last day on the month where one turns 65 years.

Permanent disability claims will only be paid after 6 months. This is due to the fact that assessment has to be done to verify the claim. Only the amount outstanding upon death will on be paid to cover the loan debt. For temporary disability, Capitec may waive the 3 months waiting period if the condition is established earlier.

Capitec personal loan competitive advantages

  • The personal loan comes with insurance to cover debt if retrenched, unemployed, dead, and unable to earn income.
  • Can get loan of up to R250,000.00.
  • The loan is easy to apply and can be pre-approved in minutes.
  • Minimal paperwork needed to finalize the application.
  • Customize interest rate starting from 12.9%.
  • Can easily manage your personal loan using the mobile app.
  • Money is transferred immediately upon approval.

Capitec personal loan competitive disadvantages

  • There is only one personal loan type, therefore, there are no choices.
  • First time borrowers are charged higher interest rates.
  • Loan term can be too long causing high interest charges.

How to apply for the loan

  • Must have the original identification document (must be 18 years or older).
  • Latest salary slip
  • Any original bank statement showing your latest 3 consecutive salary deposits into an account in your name. No need for a bank statement if you bank with Capitec bank.
  • You can start your application online
  • If you are a Capitec client you can use the mobile app.
  • Alternatively you can visit the nearest capitec bank branch. Take your ID, payslip and bank statements.

The application process for a Capitec Bank personal loan is straightforward. Anyone with a monthly income of R3000 or more is eligible to apply for a capitec personal loan. You can begin by determining how much assistance you are eligible for. You can use the affordability checker to get an idea of how much you might qualify for in terms of financing. Capitec can provide you with advice on how to keep your credit in good standing.

Capitec Bank provides a free credit education brochure to anyone interested in learning more about credit. The brochure contains information on a variety of topics, including how to maintain a decent credit score and how to become financial aware. Having a basic understanding of how credit works will assist you in managing your credit affairs.

Obtaining the correct information before to applying for a loan will help you avoid getting into problems. The Capitec bank pamphlet can be a useful tool in developing credit literacy. Your understanding of credit is critical to your financial well-being. Knowledge will assist you in running your business, paying your bills, and obtaining your personal loan.

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Capitec Personal Loan Review 2022

Staff Writer

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