African Bank Loans

African Bank Loans: Get an Affordable Personal Loan With Less Hassle

It is not uncommon to find yourself seeking for a loan during this time and era.  The South African economy has been experiencing slow growth.  South Africans have to deal with a plethora of problems. Unequal wealth distribution, rising unemployment rates, taxes, surging debts, and increased poverty levels. Data from TransUnion highlighting Q2 of 2019 reveals that many South Africans are seeking for unsecured credit.  The appetite for personal loans grew by 9.6% and 13% for both banks and non-bank providers.

Your savings may hardly get you by a tough financial situation and your paycheck may not even allow you to budget for some needs. Undoubtedly, it is true to say you need that loan. 

African Bank offers unsecured personal loans to SA citizens and foreigners too. It is one of the first private banks in South Africa to offer consumers unsecured personal loans. African Bank loans can help you pull through a rough financial situation.

Available African Bank loans 

African Bank offers three types of loans. Let’s look at each loan in detail.

1. Personal loans

A personal loan is one of the loans available for SA consumers.  Many situations exist where you could find yourself in need of a personal loan. You could be planning to finance a home renovation. You could be having an emergency.  It could be you want to finance moving home or your repair your car. Or it could be you are in dire need of cash, and a payday loan is not an option.

A personal loan from African Bank attracts the following features:

• You can get loans of up to R250, 000.
• Flexible repayment term: 7 and 72 months.
• Interest rates range between 15% and 27.5%.
• Insurance rates range from 5.04% to 5.4%.

You need to fulfill the following requirements to get a personal loan:

1. Your recent proof of income.  The slip should reflect at least three salary deposits.
2. A document showing proof of residence. Again, a recent document reflecting the last three months.
3. You should be above 18 years of age.
4. A copy of your latest bank statement, capturing at least the past three months.

2. Consolidation loans

When your debts are piling up, and you can’t seem to keep up with the minimum monthly payments, consolidating the debt has proven to be manageable. Debt consolidation involves combining all your debts into a single, manageable debt. That means you will pay less monthly payments towards a single debt, thereby saving some money.

The features of this African Bank loan include:

• Consolidate up to R250, 000.
• Consolidate up to five loans.
• Get flexible repayment terms: 12-72 months.
• The application process is convenient. The bank does not need settlement quotes or payment proof that you have settled your loans.
• Insurance rates fall between 5.04% and 5.4%. 

Requirements for consolidating a loan:

1. Your recent proof of income.  The slip should reflect at least three salary deposits.
2. A document showing proof of residence. A recent document highlighting the last three months.
3. You should be above 18 years of age.
4. A copy of your latest bank statement, capturing at least the past three months.

3. The 15% Loan

The 15% loan is the other type of product the African Bank offers SA citizens.  With this product, the starting interest rate is fixed at 15%. Getting the 15% loan will give you peace of mind as its interest rate is at a lower interest rate.

The 15% loan has the following features:

• A fixed interest rate.
• Fixed monthly repayments: 9 to 72 months.
• Easy to apply. You can apply over the phone, online or the nearest branch.
• Payable interest rate ranges between 15% and 27.5%.
• Insurance rate ranges between 5.04% and 5.4%.

You must meet the following to the 15% loan:

1. Show a document with your recent proof of income.  The slip should reflect at least three salary deposits.
2. Provide a document showing proof of residence. It should be a recent document reflecting the last three months.
3. You should be above 18 years of age.
4. Submit a copy of your latest bank statement, capturing at least the past three months.

African Bank loans life insurance 

Every credit agreement with the African Bank is life insured.  The insurance rate ranges between 5.04% and 5.4%. A credit life insurance can assist you with making minimum payments should you fall behind in paying installments.

You have two options when it comes to insuring a loan with the African Bank:

• African Banks provides various insurance covers to choose from.
• You may submit an insurance cover from another company. Still, your policy benefits must be in line with that of the African Bank.

If you are an employee, the insurance policy can cover you in case of death, temporary disability, if you get retrenched, or if you get laid off. As for the unemployed persons, the insurance coverage applies only if the death happens.

It’s critical to note the insurance policy does not cover all scenarios. There are some exclusives.  Such as if you lose your job due to misconduct, voluntary retrenchment or retirement. Also, the policy does not cover customers for acts like willful, self-inflicted harm or suicide. See African Bank Brochure for more information on this.  

How to apply for African Bank Loans

Applying for an African Bank loan is quite simple. You can try the online approach, you could do it over the phone, or you could visit a nearby branch.

A few of the branches you can visit in person if you live nearby include:

• Cape Town, Cradock, 16 Adderley Street.
• Rouse Court, Elleerines shop.
• East London, Hemmingways Mall.

Use the African bank branch locator tool to locate a nearby branch.

You will need to submit all relevant information to the bank for analysis. Such includes documents like ID card and receipts reflecting your monthly income and expenses. The personnel at the African Bank will review your application once you make your request.

For the bank to determine if you can afford the loan, it will review your monthly income and expenditure. Also, it will review your credit profile.  If you have a good credit history with the credit bureau, you have a higher chance of receiving the loan. That is; if the bank determines you can afford to pay for the installments.

If the bank approves your loan, it wires the money straight to your account. Although loan application is fast, loan approval can take several business days as the bank has to review your documents in detail. In case it declines your application, you may ask for reasons for rejecting your application in writing.  If your loan is unsuccessful due to poor credit profile, the bank will notify you if that's the reason.

What other products does African bank avail?

Apart from offering loans, the African bank also provides SA citizens with unique credit services.

Value Added Deals is of the special service you get to enjoy from African Bank. With this option, the bank allows you to own exclusive deals like mobile devices and laptops.  The bank lends you a gadget, and you get to pay for it as part of your loan.

For instance, you could own the HP15 Celeron Notebook bundle at only R5999.   If you get this particular Notebook, you save about R1400.  Your monthly installments would only add up to R284p.m.

Suppose you wish to get the HPI5 i3 Notebook. You would save as much as R4000 by getting it at African Bank.  It costs R11000 but with the African Bank loan, you only pay R7999.

Apart from this, African bank also offers banking services, credit/debit cards deals, and investment options.

Before applying for African bank loans, remember this…

Before you think of African bank loans, here are several points to keep in mind:

• The institution focuses only on unsecured loans.
• It does not offer business loans and home loans.
• You can’t get a loan if you don’t have a credit profile.
• You need a payslip to get any type of loan.
• Your payslip needs to be older than three months before you apply.
• You can apply for two loans if you have demonstrated the ability to pay installments for an existing loan.  

Final Thoughts

It is up to you to decide if you want to apply for African bank loans.  The terms may not be favor every South African.  But if you have to take out a personal loan, African bank is a well-reputed lender. The bank is a favorable spot to look for personal loan options.