If you need urgent money for medical emergencies, unexpected expenses, or to fund a project, personal loans are the best option. Banking institutions, online lenders, and established credit unions are probably the best places to apply for a personal loan. Your lender of choice should approve your loan amount at friendly interest rates and considerable repayment periods. However, to find the best, you will have to compare various personal loan lenders available1.
What to Look for in a Personal Loan
As mentioned, you should consider several factors before choosing a personal loan lender. Some of the specifics to examine include:
– The approval process – if you urgently need the personal loan, choose a lender that accepts online applications. Fortunately, most lenders in South Africa allow online applications. You should also check the lender’s approval timeline to find out how long they take before funding the loan. Some lenders provide same day approval.
– Credit requirements – your credit history plays a significant role in personal loan approval or rejection. However, note that the exact credit requirements vary depending on the lender.
– Interest rates – always go for lenders with the lowest possible interest rates on loan. This minimizes the amount you will have to pay above the original amount.
– Fees – some lenders charge set-up fees used to process the loan. To avoid incurring such costs, go for lenders who don’t charge such fees.
– Monthly premiums – you will have to pay some amount every month as repayment for the loan. Find lenders who provide manageable quotes.
– Repayment period – different banks/lenders provide varying repayment periods. Always choose one who provides flexible schedules according to your paycheck.
There are specific requirements that you should meet to qualify for personal loans in South Africa. These include:
– Be above 18 years of age
– Provide your South African ID
– Proof of home address not less than 3 months
– Proof of income
With this in mind, here are some of the best banks in South Africa you can choose from that offer customers competitive personal loan options.
Best Banks to get Personal Loans in South Africa
Some of the best banks to apply for personal loans in South Africa include:
African Bank
Over time, the African Bank has become a favorite for many South Africans for several reasons. For starters, this locally controlled bank is currently under the South African Reserve Bank. Among the best features of personal loans provided by the African Bank is that they enable customers to choose their break. Simply put, with a personal loan from the bank, you are allowed to choose a one-month payment break where you won’t pay the monthly premiums.
The bank allows for personal loans up to R250, 000 with flexible terms2. You can apply for the loan online, and once approved, the bank deposits it straight into your bank account. As for repayment terms, you can repay the loan between 7 and 72 months. The bank has a fixed repayment, which is beneficial as the amount to be repaid each month is pre-determined earlier. Interest rates range from 15% to 27.50%.
Standard Bank
The Standard Bank is another significant financial lender in South Africa that allows customers to apply for loans online through their internet banking platform or banking app and choose the best terms that suit their needs. One of the advantages of personal loans from Standard Bank is they are easy to get3. By simply filling an online form, you can find out the amount you qualify for.
They also provide personal loans at affordable interests and flexible terms. You can borrow as much as R300, 000 with a monthly income of R7, 500. You can choose your repayment period between 12 to 72 months at 24.75% annual percentage rate.
Sanlam
Sanlam is another established personal loan lender in South Africa with a good track record of offering its customers efficient and sensible financial options. The institution has made it easy to access personal loans by enabling online and mobile applications4. With this, you can quickly learn whether or not you qualify for a loan. They allow personal loans from R5,000 to R200,000.
Customers with personal loans from Sanlam enjoy flexible repayment terms, ranging from 24 months to 72 months. As usual, the interest rates charged vary depending on your chosen repayment period. However, the rate varies between 18.8% and 24.75%. The best thing about Sanlam is that Sanlam Reality Members enjoy up to 20% of loan repayments once they make 12 consecutive repayments.
Over To You: Find The Best Lender
Evidently, getting a personal loan in South Africa doesn’t seem challenging. If you are certain that you meet the requirements, your next step is to conduct thorough search to find the best lender. Always consider your financial position and ability to make payments before applying for a personal loan. With these tips in mind, you’ll be on your way to getting a personal loan that’s just right for you.
References
[1] “Fincheck”. 2020. Fincheck.Co.Za.
[2] Bank, African. 2020.
[3] 2020. Standardbank.Co.Za.
[4] 2020. Sanlam.Co.Za.
