Posted on January 3, 2021 by Staff Writer
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A personal loan is a great way to get financial relief in the case of an emergency. African Bank personal loans are offered up to an amount of R250,000.00. The bank offers short term loans as well as long term, depending on your need and repayment period.
Unlike home or a car loan where the funds are specifically for the mentioned purpose.
African Bank Personal loans have no restrictions on how you spent the funds advanced to you.
You can use the funds for your vacations, home renovations and much more as long as you have been approved and have received the funds.
The African Bank is the ‘go-to’ bank whenever you are in need of personal cash injection in the form of a loan.
African Bank Personal Loans
Eligible applicants for African Bank personal loans:
- South African citizen who has an Identity Document
- You must be over 18 to apply for a loan
- will need to produce a recent proof of income which reflects at least three salary deposits
- proof of residence not older than three months
- a recent bank statement reflecting three salary deposits
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 R1 000 to R250 000. 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.
Your first repayment is due seven days after the loan has been deposited into your bank account. The rest of the installments are due on the first day of every month till you pay off the loan.
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 charged on your loan is influenced by your credit score, the loan amount and your credit history. On average, African bank charges 15% – 25% interest on personal loans taken.
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, without waiting for the follow-up calls
- avoid taking many loans at one go
- never exceed 30% of your credit limit
Competitive Disadvantages of African Bank personal loans
The interest rate charged by the bank is too high. While gathering customer reviews of the bank’s loans we discovered that most of African Bank’s clients are not happy with interest charged on their personal loans.
Conclusion
African Bank is one of the best banks that provide personal loans in the country.
African Bank has 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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