When you make an application for a personal loan you’re applying for access to money from the creditor, which you’ll later pay. And once access is gained or approved of the loan it can be used at the borrower’s discretion to cover any expenses from home improvements or special occasions.
Personal loans in South Africa are available through a variety of financial institutions, and even online as the application processes are simpler and paperless.
Applying for a personal loan can be a frustrating process as it often requires repeat visits to the bank and tedious paperwork. And that a personal loan is generally more difficult to get as they have strict qualification requirements.
If you’re thinking about borrowing through a personal loan, here are our top five picks for South African Personal Loans offering flexible repayment plans or easy enough qualification requirements.
ABSA
Its personal loans range from R 3000 to R 150 000 and have negotiable repayment terms of up to 60 months. And to qualify for the loan you must at least only have a minimum salary of R 2000 per month.
Capitec
This is a bank that prides itself in simpler banking and it would seem no different for its personal loans. These range from any amount up to R150 000, with repayment terms ranging from 1 – 60 months. You also get free retrenchment and death cover which will settle the outstanding loan amount in full when you can no longer repay them.
Old Mutual’s
The company’s main personal loans product is called My Money Plan. It is loans of up to R 120 000, and it allows you to consolidate debt, combine it into one plan and pay a lower instalment.
Nedbank
Their personal loans range from R1 000 to R 120 000. Minimum salary requirements are lower at R1 200 per month, but you have to be employed with the same employer for 3 consecutive months.
DirectAxis
You can apply for a personal loan of up to R150 000 online that is unsecured and that you can pay back over a repayment term of between 2 to 6 years. You can qualify for the personal loan if you have a good credit record and a regular monthly income of at least R5 000.