Being a resident of South Africa, you might have already heard about Capitec. This is one of those banks in South Africa that has gained the trust of customers in the country. The bank has built a good reputation in the market and most people feel extremely comfortable working with Capitec.
Another thing that makes Capitec the first choice of banks for most people in the country is their easy and quick personal loan application process. The bank offers competitive interest rates making it easier for people to apply for a personal loan at this bank.
In this article, we will go in-depth and learn everything there is about Capitec personal loans. So, let’s get started!
Capitec personal loans- How it works?
- You can apply for unsecured personal loans. This means you don’t have to keep a property or an asset as collateral.
- The bank will offer interest rates based on your ability to repay and your credit risk report. The lowest interest rate offered by the bank is 12.9%.
- The bank gives you a chance to take flexible loan amounts. The approval of a loan amount will depend on your credit risk report and the purpose of using the loan. You can get a maximum loan amount of R250, 000 for covering your finances.
- The bank has mobile and internet banking services that make it convenient for you to bank anywhere, anytime.
- Capitec loan application process is quick and hassle-free. You can apply for the loan online and if you qualify, you can get approved in just a few minutes. So, applying for Capitec loans is also great if you need to borrow money immediately in your bank account.
Capitec personal loans- How much do they cost?
Here’s a quick overview of the Capitec personal loan plans.
- The interest rates offered by the bank fall in the range of 12.9% to 24.5%.
- You also get credit life insurance where you can pay between R4.00 to R4.50 for every R1, 000.
- You need to pay a once-off initiation fee which is a minimum of R1, 207.50 for an amount of R25, 000.
- You need to pay a monthly service fee of R69.00 for an amount of R25, 000.
- Depending on the loan amount and term, your monthly repayment amount is decided. This amount is fixed.
Capitec Finance- What types are available?
With Capitec finance you can get two types of loans:
- Personal loans: With Capitec personal loans, you can borrow a maximum amount of R250, 000 for a loan term of 84 months. You can repay the loan amount during the loan term or you can also repay the loan early if you can afford it. You can also opt for credit life insurance to ensure that you are covered in the event of death or illness.
- Car loan: You can also get an unsecured loan to buy a car of your choice.
The total cost of your loan will include the monthly initiation fees and services fees. Don’t forget to read the terms and conditions of the loan on the Capitec website to get a better understanding.
Capitec personal loans: What are the requirements?
- You must have a valid South African ID that is issued by the government.
- You must be 18 years of age or above.
- Make sure you have an income that can help you cover your repayment costs. This will make the loan more affordable.
- Capitec will perform a credit check to determine whether you are a risk liability or not. So, make sure you have a good credit score. This will ensure that your application is processed and approved easily. If you don’t have a good credit score, your application might not be approved.
Capitec personal loan application: What are the documents required?
When you want to apply for loan online, here are the following documents you need to have in your hand.
- Your valid South African ID
- Residence proof: you can give your utility bills such as water bill or electricity bills
- Proof of income: You can give your bank account statement for the past three months. You can also submit your payslips.
- Capitec might also want you to declare your assets, expenses, and liabilities to ensure that you can afford the loan. This depends on the loan amount you have taken.
Capitec personal loan application online
You can apply for the Capitec personal loan in two ways:
- Offline application: You can visit the nearest Capitec branch or make a phone call. You will be guided by the staff for the application process.
- Online application: The easiest way to apply for Capitec loans is through an online application. You can visit the website of Capitec loans and start filling the form along with the documents. You need to select the loan amount and term and upload the documents from your device.
If you also want to know how much your monthly repayment amount will be you can use the Capitec calculator to find the amount. Once you have submitted your application, wait for approval. Once approved, you will get the amount in your bank account.
Capitec evaluates your loan application based on three factors:
- Your credit history: With a good credit score, the bank can easily approve your loan.
- Income and expenses: If you have declared your income and expenses during the application, it can also determine the approval.
- Stability of income: Based on the stability of your income, your loan application approval will be determined.
Capitec personal loans: Advantages
- You can borrow a maximum amount of R250, 000. The bank offers flexibility in choosing your loan amount and term. However, the approval will depend on the above-mentioned three factors.
- You can get credit insurance with Capitec loans.
- The loan repayment amount is fixed so you can plan your budget efficiently.
- The bank also offers flexible payment terms so you can afford the loan.
- The loan you will get will be based on your credit score.
Before you get loan online with Capitec, you can browse the existing loan offers from the bank on our website Snappy Loan.
We have curated the latest loan offers from all the lenders and banks on our website making it easier for you to choose the loan that suits your needs.