African Bank personal loan review 2024

The African Bank Personal Loan offers credit from R2,000.00 to R350,000.00, with interest rates varying between 15% and 24.50%. Repayment […]

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The African Bank Personal Loan offers credit from R2,000.00 to R350,000.00, with interest rates varying between 15% and 24.50%.

Repayment periods span from 7 to 72 months, and insurance, mandatory for this loan, costs between 5.04% and 5.40% of the loan amount.

African Bank Personal loans offer flexibility as funds can be utilized for various purposes without restrictions. Whether it’s vacations, home renovations, or other needs, once approved and funded, you have the freedom to use the loan amount as desired.

African Bank stands out as the preferred choice for individuals seeking a personal loan for financial flexibility.

African Bank Personal Loans

Eligible applicants for African Bank personal loans:

  • Most recent proof of income, such as your latest payslip
  • Applicant must be over 18 years old to apply for the loan
  • Submission of the latest 3 months’ bank statements

How it works

Application process

There are 3 ways to apply for an African Bank personal loan;

Online: you can choose to apply online from African Bank’s website by filling in your personal details and following the simple step by step application process shown therein.

Phone: applications can also be done by sending through a call back form that is provided in their website, and you will receive a call from their consultant.

Visit branch: most people still prefer walking in a bank for loan applications, you can choose to visit your nearest African Bank branch and have a consultant assist you with the application process.

Why you need a loan

It is wise to assess the reasons why you need to take up a loan before applying. When you have a justifiable reason to take up a loan, the African Bank personal loans will be most convenient. Below are 6 reasons you might take up a loan:

  • for paying school fees
  • making a big purchase like a car
  • financing home renovations
  • debt consolidation
  • financing events like weddings or a funeral
  • vacation

Justifying your reasons to take up a loan can help you decide how much you need and determine how you are going to pay it back.

Loan amounts

African Bank’s personal loan amounts vary from R2,000.00 to R350,000.00. However, the bank determines the maximum loan amount you are authorized to borrow. To come up with a fair maximum amount of your debt, your income ratio, credit score, credit history and financial profile will be considered.

Repayment Period

Depending on your cash flow and the amount you loaned, you can choose to repay the loan over a period of 7 to 72 months. The monthly repayment amounts are fixed; therefore you will know exactly how much you will be repaying each month.

You can make your installments by setting up a payroll deduction or set up a debit or stop order from your bank.

African Bank’s existing customers enjoy the credit insurance feature that allows them to take a break on repayments during the course of the loan.

When your credit has been insured the bank does not penalize you for skipping payment because of a justifiable situation you are in.

Interest charged

The interest rate on the African Bank is fixed for the duration of the loan. African Bank charges a fixed interest rate of up to 24.50%.

Competitive advantages of African Bank personal loans

Flexible loan terms

African Bank offers both short term and long term personal loans, allowing you to take the more convenient loan period.

Should your cash flows allow you to make large monthly instalments to repay the loan in the shortest time possible then you are welcome to take a short term loan.

Also, should your income only allows you to pay small instalments over a longer period, African Bank still has a deal for you since their loan terms go up to 72 months.

Improve your credit profile

One of the ways of improving your credit score is through taking up a loan and honouring the obligations thereof.

To make the loan work in your favour so as to improve your creditworthiness, you will have to pay and manage your loan well. There are 3 habits you have to practice when managing your loan:

  • always pay your loan on time and without waiting for the follow-up calls
  • avoid taking many loans at one go
  • never exceed 30% of your credit limit

Competitive Advantages of African Bank Person Loans

  • The maximum loan amount is high.
  • Interest rate is fixed over the duration of the loan.
  • Repayment is adjustable.

Competitive Disadvantages of African Bank personal loans

  • There is no rewards program for making early repayments.

Conclusion

African Bank is one of the best banks that provide personal loans in the country.

African Bank has also grown as an establishment since its comeback acquiring great satisfaction from its clients for their low bank charges and great customer bank services.

It is a go-to bank when you need a loan that will be approved and advanced in the shortest time possible.

If you are happy with the interest charged and pay off your loan well, then your commitment will pay off through a healthy credit profile.

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