So you’ve decided to apply for a loan to help you pursue your studies. You’ve never taken out a loan from a bank before, and even if you just need a short-term loan, you’re still unsure whether lending money is a good idea.
There are numerous reasons to lend money. Fill out a personal loan application only if your reasons for requesting the loan will bring value to your life. A loan can help with things like education, property purchases, and investing in a good opportunity.
You can also do things that you would not be able to do otherwise, such as visiting family overseas or sending your children to study abroad.
Simply explained, a personal loan is money obtained from a bank or other credit source that you repay in fixed monthly installments. A personal loan is an unsecured loan, which means it is not secured by collateral (such as your home when you take out a bond – the bank always has your home as security and can sell it to recover the debt if necessary).
Can I Apply For Loan If Am In Debt And Battling To Pay Off?
If you currently have debt from store cards or credit cards, you may believe that taking out a loan will merely add to it. In reality, taking out a loan to combine your debts is a wise decision. In fact, it is one of the most popular reasons for borrowing money.
Paying off debts to various creditors entails a variety of balances due, interest rates, and terms and conditions. With a personal loan, you can combine all of your outstanding liabilities into a single monthly payment.
This not only makes your debt much easier to manage each month, but it also allows you to set out a realistic schedule for paying off your debt without being overwhelmed.
For example, if you owe R8 000 to Store A, R4 000 to Store B, and R3 500 to Store C, your total debt is R15 500. You apply to the bank for an R20,000 short-term loan (duration less than a year). If your personal loan application is approved, you can use the funds to pay off all of your debts, leaving you with just one monthly payment – the loan repayment to your bank.
Their customers can consolidate up to five loans into a single consolidation loan of up to R250 000, with the benefit of a single cheaper repayment!
Other Common Reasons For Personal Loans:
Pay medical expenses
Finance a funeral
Pay for a wedding
Renovate your home
Buy a car
Pay for studies
Start your own business
What Do I Need To Apply For A Loan?
To apply for a loan, you must be over the age of 18, and you must provide recent proof of income that represents at least three salary deposits, proof of residence that is no more than three months old, and a recent bank statement that reflects three salary deposits.
You can repay a loan at African Bank over a period of seven to 72 months. The funds are sent directly into your bank account, and you know precisely how much you will be repaying each month because the amount is fixed.
Many customers contact us because they are unable to repay their loan due to circumstances beyond their control. What happens next?
They understand that you may find yourself in an unexpected situation, such as permanent disability, temporary disability, or retrenchment, or you may even die soon after taking out the loan. It is critical that the financial decisions you made previously do not become a burden to others.
As previously stated, a personal loan provides far more benefits than you might imagine – including coverage for events beyond your control. When applying for a loan, it is critical to inquire about this form of protection.
The most important thing to know about a loan is that it must be returned according to the terms and conditions of the contract you sign with the bank. Failure to do so can harm your credit history, making it difficult to obtain credit for anything in the future (like a phone or car or even rent a home). The money you owe remains your obligation, and the longer you take to repay it, the more interest accrues, increasing the amount you owe.
How does African Bank Loans Work
When applying for personal loans with African Bank, it is best to select the one that best matches your requirements. They also provide tailored loan solutions that include the following features:
- Flexible terms: You can apply for a maximum of R250 000 and make repayments over 7 to 72 months.
- Fixed repayments: You stay in control of your budget with monthly instalments that never change.
- Easy application: You can apply online at your convenience if you want to avoid phone calls and branch visits.
What are the African Bank interest rates
For African Bank loans, interest rates are as follows:
- Interest rate (APR) from 15% to 27.75%.
- In addition, insurance rates range from 5.04% to 5.4%.
African Bank Loan Application Process
We recommend using the loan calculator before beginning the African Bank online application procedure. After you’ve determined your preferred monthly repayments, the following step is to click the “Go to Site” option. This will bring you to the African Bank’s website, where you can apply online.
You will fill out the application form after submitting all required papers. If you are deemed to be eligible, African Bank staff will contact you to finalize the offer.
African bank repayment method
The repayment dates are listed on the front page of the credit agreement. All following payments are due on the first of each month. The first repayment is due seven days after the funds are put in your account. You have the following options for repayment:
- Payroll deduction;
- Debit order or stop order from your bank account;
- A deduction from your paycheck every month;
- In-store payments;
- EFT; and
- Visa or Mastercard payment.
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