Standard Bank Personal Loan is a term loan for individuals over the age of 18 who earn a minimum income of R3,000.00 per month. The maximum loan amount is R300,000.00.
The repayment period for the Standard Bank Personal loan ranges from 12 to 72 months. A monthly service fee of R69.00 is payable during the loan’s term.
An initiation fee of R1,207.50 is required to activate the personal loan. The loan’s interest rate is personalized and has a maximum of prime lending rate + 17.50%.
Personal loan account holders who participate in the UCount rewards program can earn UCount rewards. Account holders can receive up to 20% in rewards.
What you need to know to get the loan
Getting a Standard Bank Personal loan is not that difficult. You need to understand their loan offerings and apply for one that suits your needs.
The Standard Bank offers two types of personal loans. These loans are different and are used for different reasons.
Standard Bank has some of the most sought-after Personal Loans in South Africa. And if you are in need of Business loans it has that facility as well. However, in the interim, we will dive deep into Standard Bank’s personal loan offering.
Before deciding on a loan, you must think hard and long about it and weigh your options. There are many options you may take into consideration, You may discover that getting a Standard Bank credit card is much better than applying for a personal loan.
Standard Bank offers term loans and revolving loans to both customers and non-customers.
Standard bank loans come with uCount rewards and a personalized interest rate. If you are a good creditor who pays loan installments on or before the due date, your interest rate will be lower.
Difference between terms loans and revolving loans
What is a term loan?
A term loan is a loan with a set of scheduled payments lasting over a certain period of time. This type of loan has a time factor and is usually paid off within 72 months.
Term loans have equal payment intervals meaning installments are paid every month until the loan and interest is settled.
What is a revolving loan?
Revolving loans are more flexible loans that allow the borrower to withdraw, repay, and withdraw again. The lender gives the borrower a facility, which he maintains through constant repayments. Generally, revolving loans have higher interest rates.
Revolving loans are ideal for emergencies.
Standard bank term loans overview
Standard bank term loan is one of the most popular personal loans in South Africa.
Depending on how you use your term loan, you can earn standard bank uCount rewards. It also comes with Term loan insurance, which insures for unforeseen events like death, retrenchment and disability.
Standard Bank Personal Loan Application
- SA ID number
- Proof of residence not older than 3 months
- 1 month’s payslip
- 3 months’ bank statements, if you don’t bank with Standard bank
- Must earn at least R3000 per month
- Have a good credit score
What you get from a Standard Bank Personal Loan
- Insurance in case of death, disability and retrenchment
- Loan amount up to R300,000.00
- Personalized internet rate
- Get uCount rewards
- Option to pay the loan amount between 12 to 72 months
- Access financial tips to manage your finances.
Standard Bank term loan’s competitive advantages
- Can apply for a term loan even if you don’t bank with Standard Bank.
- Your interest rate is personalized. You can negotiate interest rates depending on your credit score and debt history.
- The loan period is flexible. You can choose the time period that you are most comfortable with.
- You get rewards if you use your loan to buy at selected uCount merchants.
- The minimum amount required is low.
Standard Bank term loan’s competitive disadvantages
- Your financial history will impact the interest amount you pay. If you have a bad credit history, you will get a high-interest rate on your term loan.
- Comes with a monthly fee of R67
- There is a once-off initiation fee.
Additional Considerations
Standard bank term loans come with great perks. The application process is fast and easy. The application can be done and finalized online without going to a Standard Bank branch. Furthermore, it doesn’t require any collateral.
Word of Caution: Avoid late payments and make arrangements to ensure that the bank doesn’t add any interest on your loan.
Standard bank revolving loan overview
Standard bank revolving loans offer flexibility in repayment periods. You get to choose the period of repayment. However, the total amount of credit that can be borrowed is completely set by Standard Bank. It is up to you as a customer to choose the amount you want, but it can not exceed the total amount you are eligible for.
Standard bank revolving loan requirements
- SA ID number
- Proof of residence not older than 3 months
- 1 month’s payslip
- Last 3 months’ bank statements, if you don’t bank with Standard bank
- You need to earn at least R8000 per month to qualify.
- Have a good credit score
What you get on a revolving loan
- You can increase or decrease your revolving loan amount.
- Get up to R300,000.00 in revolving cash.
- You can access funds if you paid 15% of the loan amount.
- Fixed monthly repayments
- Optional insurance on the loan amount to cover disability, retrenchment and death.
- Expert advice on how to manage your finances.
Standard bank revolving loan competitive advantages
- You can apply for a revolving loan using the app or online and get instant approval.
- Money is sent to your account after a call and is approved.
- You get access to uCount rewards after approval.
- An application can be done anywhere and at anytime.
- You choose the loan amount that you want.
- You choose the payment period that you want.
- Can check repayments online using standard financial tools.
- This loan is available when you need it.
Standard bank revolving loan competitive disadvantages
- The interest rate is high on revolving loans.
- There is an initiation fee.
Additional Consideration
Having access to a revolving loan is a good way to stay liquid, but this loan comes with a high-interest rate compared to traditional loans.
It is a good option to have considering that life is full of uncertainties. You can use your revolving loan for seasonal purchases like fixing your vehicle or house. If you use it on luxury items it can be bad and uneasy to repay. You need to be conscious of how you use this type of loan.
How to apply for standard bank personal loans
- Make sure that you have your last 3 months’ pay slips and they must be current.
- Make sure that you have your last 3 months’ bank statement and it must be current. Your bank statement must show your income. If you bank with Standard Bank, then you don’t need a bank statement.
- Check your credit score and make sure that it is good. If not, pay the amounts in arrears. Visit clearscore.com to check your credit score and get tips on how to improve it.
- Make sure that you earn at least R3000 for a term loan or R8000 for a revolving loan.
- Start your application online or use a mobile app if you bank with Standard Bank.
- After completing your application, you will be approved or declined.
- If approved, you will receive a call from a consultant to finalise your application.
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