Personal Loans

Personal loans are loans where the money is paid directly to you for you to do with as you please. Please note that all loans require monthly repayments and failing to keep up with minimum loan repayments will result in an adverse credit record and will cause you to battle to have access to additional loans and financing in the future. The interest rates on the loans below will vary depending on your affordability and credit rating. Please note, the separate initiation fee (up to R1,140), is dependant on the size of the loan and includes VAT . Debt protection is also available should you want it.

Loan Information

Loan Provider Capitec FNB ABSA Woolworths Financial Services Standard Bank
Loan Amounts Available: R1,000 - R230,000

R1,000 - R150,000

R3,000 - R150,000 R1,500 - R8,000 (Express Loan)

R1,000 - R75,000 R500 - R300,000
Repayment Period 1 - 84 months 1- 60 months (every January you get a break from paying your loan installment) 12- 84 months 1,3,6 months (Express loan) 12, 24, 36, 48 or 60 months 3 - 42 months
To Qualify you need to be over the age of 18 and… -Must have a bank account for at least 3 months as well as proof of residence, proof of salary and ID document

-Must have a bank account for at least 3 months as well as proof of residence, proof of salary -Earn R700 pm after expenses

- be under the age of 65 -Must have R700 left over each month after all bills are paid

-Proof you have been employed for at least 6 months and have an active bank account for at least 3 months.

-Must have a valid SA ID
-Earn a salary of at least R2,000 pm
-You must be permanently employed and have an active bank account

-You must be formally employed and have a valid SA ID and be aged between 18- 65 -Earn a salary of at least R3,000 pm

-Salary must be automatically deposited in your bank account

Monthly service fee (VAT included) R57 R57 R57 R57 R57
Initiation fee (once off) R1,140 R1,140 R1,140 R100 - R250 R1,140

Helpful Information about Personal Loans:

1) Should I rather get a personal loan or a payday loan?

When you are looking to get a loan, the first question should be how long you want the loan for (how long will it take me to repay...?). The amount of interest you will pay back on the loan is greatly influenced by the time period of the loan. If for example you borrowed R10,000 at 18% per annum interest for 4 years, you would end up repaying around R20,000! If that same R10,000 was borrowed for only 2 years your total repayment amount would be in the region of only R15,000! You can clearly see by this illustration how the time frame of the loan dramatically affects the total repayment amount.

So where does this leave us in terms of choosing the right loan for you? As a general rule of thumb it is always best to repay any amount that is borrowed from a financial institution in the shortest possible time (of course this depends entirely on your affordability) to avoid unnecessary interest.

Payday loans and personal are quite different in that they offer very different repayment periods. Payday loans are generally offered for a maximum of 45 days whiles personal loans are offered from periods starting from 1 month and up to 5 years in some cases.

The other big difference in terms of these 2 loan types (besides the loan amount) is that payday loans are available in your account within a few hours of your application and that absolutely no paperwork needs to be sent through as the whole process is done online. Personal loans on the other hand are slightly more complicated in that you will need to produce numerous documents and the process cannot be done online.

When choosing a loan take some time to weigh up all your options with regards to how much you really need to borrow, how long will it take to repay and from there decide on what the best options are going forward.

In terms of loan amounts available, Capitec currently offers the highest at R230,000 for personal loans, while for payday loans GetBucks offers the highest at R4,000.

2) Secured vs unsecured personal loans

If you are looking for a Personal Loans, you might want to know what the difference is between secured loans and unsecured loans. For those individuals who are not aware what the dissimilarity between the two are, there are distinct differences between these two types of loans and are mostly reliant on how much you would like to borrow and what your financial situation looks like.

This is what you can expect if you are looking for a secured loan and what it entails:

  • A secured loan means it is secured against an asset such as a property, building, home or other valuable assets.
  • If the borrower fails to honour his or her loan it could result in the individual losing this particular asset.
  • It is therefore wise to think things through carefully if you want to attach an asset to obtain a secured loan.

There are a couple of distinct advantages when taking out a secured personal loan:

  • Chances are the amount you can borrow for could be a lot more when taking out a secured loan than the amount for an unsecured loan.
  • With secured loans it is often possible to spread the repayments over a longer period of time.
  • Lenders are not as pressed for repayments when they have your asset as security as they could be for an unsecured loan.
  • Interest rates are usually lower than for unsecured loans.
  • At times if you have a bad credit history, you could Personal Loans as the asset you are securing against the loan could be beneficial.

This is what you can expect if you are looking for an unsecured loan and what it means:

  • An unsecured loan is just that – unsecured and requires no assets as collateral against the loan.
  • Unsecured loans are often more expensive to take out as there is no security against the amount borrowed therefore the lender is at risk.
  • Amounts borrowed for an unsecured loan is often less than amounts borrowed for secured loans.
  • These unsecured loans are usually determined according to your credit history and your income.

What are the advantages of an unsecured loan?

  • Unsecured loans means you don’t need to have an asset as equity against the amount lent, which could result in losing your assets or home should you secure these against a loan and unable to pay it back.
  • If you are not a property owner you will not be disadvantage against when applying for an unsecured loan.
  • It is no secret that using store cards is an expensive way of making purchases, therefore using a loan instead to service these needs might be a better idea.

As you can see, unsecured and secured loans are used for very diverse purposes. Most people only take out a small amount of secured loans due to the amount of wealth they have invested in them. Unsecured loans are more common because they’re much easier to attain. If you are not sure which one’s for you, peruse our site to make comparisons in order to find the one best suited to your needs.

3) How the NCR assists with debt resolution

Do find yourself drowning in debt and not sure how to repay all those credit card bills, accounts and Personal Loans? When the National Credit Act came into being in 2005, the National Credit Regulator was established which oversees the regulation of the credit industry in South Africa.

What are the most important roles that the NCR undertakes?

  • The NCR plays an integral part in the banking industry in South Africa.
  • The NCR monitors all credit practices in South Africa.
  • The NCR deals with complaints from consumers regarding unfair credit practices enforcing the rights of the consumer in the National Credit Act and in doing so sifting out all unjust and unprincipled credit practices.
  • With so many individuals battling to stay on top of debt, debt counselling has come to play an important role in the lives of many individuals. The NCR has implemented stringent criteria for those wanting to practice as debt counsellors.
  • For those individuals wanting to know their rights regarding their debts and how to go about tackling debt head-on, the NCR is there to educate consumers regarding these rights.
  • One of the most important roles that the NCR plays is as a go-between creditors, government institutions, creditors and debtors ensuring that effective communication and understanding is established.

Have you had enough of debt? If you have tried your utmost but cannot seem to get out of debt it is time to approach a debt counsellor, but ensure that you choose someone who is registered with the NCR and has the correct credentials.

How does debt counselling work?

  • In short, debt counsellors assist and help you to budget and work out your repayments so that you can successfully clear all your debts.
  • They will also negotiate with your creditors on your behalf.
  • The first requirement for debt counselling is that you should earn a fixed income.
  • You can approach a debt consellor of your own accord; but usually a magistrate or your creditors will appoint one on your behalf.
  • For information on registered debt counselors you should contact the NCR or the Debt Counsellors Association of South Africa (DCASA).
  • Debt counsellors will look at all your earnings, essential expenditure and debts and come up with a debt restructuring proposal.
  • Debt counsellors are there to assist – your new ally will stick by you until all your debts have been sorted out and repaid; they are there to ensure your name is cleared from all credit bureaus.
  • The proposal that your debt counsellor comes up with will be presented to your creditors which means you will not have to deal with your creditors personally which should come as a relief to those already stressed about debt.

If you are not sure how to repay your debts, credit cards or Personal Loans, help is available through the NCR – visit our site to find out about Debt Consolidation.

4)Personal Loans Tips:

Do you need a new car, new wardrobe, getting married, money for university fees or need a well-deserved holiday? No matter what the reason or circumstances you need for a personal loan, there are ways and means of getting that lump sum you require almost right away. If you are in a quandary as to how much you can take out to see you through the tough times or whether you qualify at all, or even how much you need to pay on the loan every month, our site is designed in such a way so that you will know exactly how much, where and how to go about obtaining personal loans no matter what the reason you require it for.

Do I need collateral for personal loans?

  • With unsecured loans you need not put up any collateral whatsoever to obtain a loan.
  • This might equal less risk (you don’t lose your house if you cannot honour the loan agreement) but it does mean that you are more than likely going to pay more for Personal Loans.
  • Many unsecured loans have a fixed interest rate which means that you will pay back the same amount of money every month for the duration of the loan period.

How much will your lender be prepared to offer you?

  • It all depends on what your credit record looks like and also how much you earn on a monthly basis.

When applying for that much-needed personal loan do a little bit of homework.. This is what you need to ask yourself:

  • How much can I afford to pay back on my personal loan every month?
  • Always take your income and expenses into consideration so that you are certain that you can afford the repayments.
  • You will also need to know exactly what amount you are entitled to borrow.

Why you need to compare loans and debt consolidation with Wheretobank! Trying to find and compare the merits of a plethora of lenders can be a chore of note. The thing is we will do all the legwork for you so that you will be able to work out exactly how much you are entitled to borrow and exactly how long the loan will take to repay. If you are looking for personal loans, visit our user-friendly site today to compare packages and options.

5) Difference between bridging finance and personal loans:

What is bridging finance and how does this differ from ordinary personal loans? Bridging finance has been designed to help you out while waiting for funds to become available – but beware they can cost a small fortune! In the past many banks provided bridging finance but many financial institutions specialises in this type of loan these days. First and foremost you need to be sure you really need this kind of personal loan.

This is how bridging finance works:

  • If for example you sell your house you normally have to wait for the transfer to be registered before any monies can be released.
  • While waiting for the money you might need to cover costs, for example a deposit for another residence or to pay for transfer of ownership.
  • Bridging finance is one way of making up the shortfall of cash.
  • In effect bridging finance is the same as short-term personal loans or a micro-loan.
  • When the sale of your home is concluded and you receive the monies from the buyer’s payment you repay the bridging loan.
  • This kind of financing is also available as an advance loan when expecting a pension pay-out of third-party claims.
  • As a rule of thumb, lenders provide a percentage (usually about 80%) of the net future amount against which you are taking the loan.

As with all things in life there are pros and cons:

  • The advantage of bridging finance is that money is available at very short notice.
  • Applications for loans of this nature are simple to apply for.
  • The disadvantage of course is the high interest rate you will more than likely have to pay – in general bridging finance is considered to be a high-risk loan.
  • Remember that if there are any delays in pay-outs you could end up with huge interest rates for this kind of short-term loan which could become problematic.

If you are looking for finance to bridge the gap and don’t want long or short-term personal loans, bridging finance might be the solution. Find out more how personal loans, bridging finance and other loans work by visiting our site and comparing what various financial houses have to offer.

6) 4 key factors when raising capital and securing a loan:

By addressing these 4 key points both confidently and concisely when looking for a personal loan or a loan for your business, potential investors are likely to jump to assist you. It is no secret that when looking to raise capital as a start-up or when you want to expand your business or even when investing in property, that raising capital or securing a much-needed loan is becoming harder and harder. Traditional lenders and banks need you to jump through many hoops and they are applying less attractive terms after all the jumping is done and dusted. Private lenders and investors are becoming more cautious and are expecting more and more from those wanting to borrow money. If it is funding you need for personal loans to fund your business, then these four key points should assist.

These are the 4 key points you need to take into account when looking to raise capital and some advice from Where To Bank,

The Project:

  • What is the project the lender or investor is providing your capital funding for - if it is for your business then what kind of business operation are you running?
  • What is it that sets your business apart from your competition?
  • What does your business have to offer that inspires enthusiasm and interest from your investors?
  • It is important when pitching to investors that you keep it simple, real and concise.

The Partners Matter:

  • Who are the main partners involved in the project going to be?
  • Who is responsible for putting the deal together?
  • What kind of experience do the partners have and who is the person responsible?

The Financing:

  • It is important to show the real figures – but for start-ups this might prove to be quite difficult.
  • Previous experience could overcome the obstacle of not having real figures when pitching if the business is just starting out.
  • Being realistic is all-important – pretending that your business will never have issues or problems simply makes you to look like an amateur.

The Management:

  • Investors like to know who will be running the everyday operations of the business.
  • This is of course key to the success of any operation.

Raising capital does not have to be a nightmare – keep to these four points and soon you will be able to secure the kind of personal loan or business loans to propel your business forward or to start-up the business of your dreams. When looking for personal loans to suit your individual needs, it is a great idea to compare options and packages available on our site to give you the kind of educated information you require.