Category: Personal Loans

Review and compare all South African banks and lenders that offer Personal Loans in South Africa.

Categories
Personal Loans

Everything You Need to Know About Building Emergency Fund

apply for loan online

Life is uncertain and you might end up in some emergency that might need you to have enough funds to cover the expenses. But what if you don’t have enough money in your bank account to cover the emergency expenses? In such a case, having an emergency fund will come in handy. 

Of course, you can take a personal loan to cover your financial gap, but this might take some time for approval and in an emergency, this might not be the right option. So, if you haven’t set up an emergency fund, now is the time. 

But do you know what an emergency fund is and how you can set it up so that you always have some money just in case you need it immediately? If not, keep reading this article to find out more. 

What is an Emergency Fund?

An emergency fund is defined as the money you save in your account. It is the money you can use only when you have unplanned expenses. 

Usually, while you are creating a budget, you know how much money will be needed for your usual expenses such as electric bills, groceries, water bills, house rent, and more. But you don’t know how much you will need when you or anybody from your family falls sick or loses their job or the only source of income. In situations like these, having an emergency fund will be beneficial. You will be able to pay your medical bills or cover your living expenses until you find a new job. 

Therefore, if you haven’t set up an emergency fund, you must take the required step to set up an emergency fund. 

Another reason why an emergency fund is important especially in South Africa because most people live on a paycheck to paycheck basis. So, when they don’t have money to cover emergency expenses, they take a long-term or short term loan. This strategy might seem like a good one at the time, but it backfires when they have to repay the loan over time. 

So, instead of taking out a loan every time you need money, it is better to save up every month. This gives you peace of mind when you have an emergency.

Emergency Fund: How to Create it?

If you thought keeping extra money under the mattress or in your pant pocket is what we mean by the emergency fund, then you are wrong! Setting up an emergency fund takes consistency and dedication with a thought to have a better future. Here are two ways you can set up an emergency fund:

  • Savings Accounts

As the name suggests, it is an account specifically created to save money. Most banks offer savings account where you can save money that also builds interest over time. You can make withdrawals but can’t use them on day to day basis. So, this makes it a perfect type of account to save money. 

Savings account agreement that you sign might require you to make monthly deposits. You can also find high-yielding accounts that are insured. 

  • Transactional accounts

As the name suggests, these are the accounts that you can use for making daily transactions. The type of account you receive your monthly income to is transactional accounts. You can also have a different transactional account to build your emergency fund. 

But know that most transactional accounts don’t build any interest. Also, they might have monthly charges. To find what is the best option for you, make sure you get in touch with a financial advisor. 

Emergency Fund: How much money you should put? 

One thing you must know is that building an emergency fund will take time and consistent effort from your end. So, start your emergency fund with an end goal in mind which is to have enough money that allows covering your emergency expenses if the need arises. 

If you ask the experts how much money you should put in your emergency fund, they will say money at least worth your salary for three months. Some will say you must have enough money in your emergency fund that allows you to sustain for six months in case you lose your job. 

All in all, you must make sure that you have a strategy in place for building the emergency fund such as:

  • Put some money aside every month after you have made your budget. It doesn’t need to be thousands of Rands, instead, you can put R100 or even R50 to the very least. This will build up over time. 
  • When you find lose money in your home or at the end of the month, make sure you save it up rather than spending it.
  • Another way to ensure that you put money in your emergency fund every month is by setting up a debit order from your salary account. The amount will be automatically transferred to your emergency fund account. 

Emergency Fund: What are the benefits?

  • You will learn the best way to handle personal finances.
  • You will be disciplined and would avoid the temptation to make unnecessary expenditures. 
  • If you have an emergency, you don’t need to borrow money from your family or friends or apply for loan online.
  • When you have an emergency fund, you can earn more money with high interest rates. 
  • You will always have peace of mind because you know that you always have backup money to cover your expenses. 

Emergency Fund: What are the features it must have?

  • Make sure your emergency fund is easily accessible when you need it. You shouldn’t be in a position where you can’t withdraw money from your emergency fund due to some regulations. 
  • Make sure you create your emergency fund in a bank that is registered with a good reputation. 
  • Make sure your emergency fund is always gaining value. It shouldn’t lose value due to inflation. 

When you have set up an emergency fund, you can rest assured that you have a backup. However, if you want to take out a loan, make sure you visit our website Snappy Loan where you can compare, search, and review the different loan offers in South Africa.

Categories
All Personal Loans

Thinking of Getting an Absa Personal Loan? Read This Article Now!

personal loan

Have you been experiencing financial issues and unable to cover your immediate finances? Or maybe you want to buy a home or car or need finances for some other personal expenses? If such is the case, getting a personal loan might be a great idea. 

A personal loan gives you the ability to cover your finances without putting immediate pressure on your budget. However, remember that you need to repay your loan over time every month. 

But which bank you should choose to get a personal loan from? The answer is simple. You can get a personal loan from Absa, a registered credit provider in South Africa. Absa personal loans will surely accommodate your needs easily. 

Sinceit is a registered credit provider, you can rest assured that you will be easily able to cover your finances. You can take out a loan between R250 and R350, 000. You can get a loan based on your individual circumstances and cover any personal needs you might have. Let’s get to know about Absa loans in detail in this article. 

Absa personal loans: How do you qualify?

Following are the requirements for you to qualify for Absa personal loans:

  • Proof of residence
  • Minimum age of 18 years and above
  • Valid South African ID book or card
  • Credit protection
  • Bank statements of the past 3 months as proof of income

For credit protection, you can either have your plan or you get the credit protection plan offered by Absa. 

Absa personal loans: How to apply?

Following is the process to apply for Absa personal loans:

  • Before you apply for a personal loan with Absa, you should use the monthly repayment calculator to determine your monthly repayment amount for a specific loan amount and term. Once you have found the monthly repayment amount that suits your budget, you can start filling the application form. 
  • To go to the website of Absa personal loans, you can click on ‘Snap It’ on our website Snappy Loan. This will take you to their website. 
  • If you already have an Absa bank account, you can directly login online using a tablet, mobile or PC. 
  • From the menu, you can choose Apply and Personal loans.
  • Fill the application form with the required details and submit the required documents.
  • Once your application is approved, the amount will be transferred to your bank account in a few hours.
  • You can either apply for loan online at the Absa website or visit your nearest Absa branch and talk with an official about the process. 

Absa personal loans: How much money can be borrowed?

When you apply for a personal loan online at Absa, you can get a minimum amount of R250 and a maximum amount of R350, 000. If you want a larger loan amount, you need to earn a minimum of R2, 000. However, if you are applying for a smaller amount, you need to earn a minimum of R1, 500. Also, smaller loan amounts up to R8, 000 get repaid in a short duration of 2-6 months. 

Absa personal loans: What are the repayment terms? 

To repay your Absa personal loan, you get a loan term of 12 months to 84 months. However, for current Absa customers, the minimum loan term is of 2 months. If you have taken smaller amounts, they usually get repaid in 2-6 months. 

Apart from an interest rate, the bank also charges an initiation fee and service charge on the loan amount.

Absa personal loans: What are the benefits?

  • With Absa’s personal loan, you don’t need to provide any personal property as collateral. This makes it easy for you to get a personal loan. However, the loan approval depends on your credit history.
  • You can find a personal loan calculator with Absa that will help you calculate your monthly repayment amount for a loan amount and term to help you make an informed decision.
  • Once your application is approved, the loan amount is transferred to your account quickly, usually, within a few hours.
  • With Absa personal loans, you can get competitive interest rates. 
  • With Absa personal loans, you also get credit protection. This ensures that your debt is paid in the event of an illness, disability, or death. 

Absa study loan: A brief introduction

Apart from a personal loan, you can also get a study loan from Absa. This loan will help you fund your education. Following are the things you need to qualify for an Absa study loan. 

  • Valid proof of South African citizenship
  • Proof of residence
  • Minimum salary of R3, 000
  • Acceptance or registration certificate for any undergraduate and postgraduate program from a university. 

The student loan offered by Absa is available for parents, guardians, and students who have a part-time or full-time job with proof of income. You can get a minimum study loan of R3, 000 and a maximum loan of R150, 000. 

You can use the Absa study loan for covering your costs for every year of your study. You can use the money to cover the expenses of 

  • Tuition fees
  • Prescribed textbooks
  • Accommodation
  • Registration fees
  • Any computer equipment that you might need to cover your educational needs

To apply for the Absa study loan, you can visit the nearest Absa branch, or apply through their student bureau or by calling their call centre. 

Absa express loan

The express loan offered by Absa is a type of short term loan that is usually repaid in 2-6 months. If you have a regular monthly income, you can get an express loan of a minimum amount of R1, 500 and a maximum amount of R8, 000. 

When you take the first express loan from Absa, you need to give an interest rate of 5%. If you take any subsequent credit in the same year, you need to pay an interest rate of 3%. You need to pay service and initiation fees as applicable. 

If you have a good credit score, you can get your Absa loan application approved in a few days. Once approved, you will get the amount in just a few hours. 

If you want to know more about Absa loans, you can visit our website Snappy Loan. You can search, review, and apply for Absa personal loans with just a few clicks.

Categories
Personal Loans

African Bank Personal Loans: Get a Loan Up to R250 000

get loan online

One of the things that are crucial for a comfortable life is having enough money to cover your expenses. For most of our lives, we are trying to figure out how we can best use our finances so that we can make every dollar count. We are always planning on how to pay the bills, cover our rent, groceries, and more. 

This becomes difficult especially when we are in a tight financial situation. That’s when having a reliable and trusted bank by your side that can offer you a personal loan becomes crucial. One of the banks that you can trust to get a personal loan is Africa Bank. 

There are several reasons why African Bank is a great choice to get a personal loan from. 

  • The bank has been in South Africa for several years. This allows them to understand the specific financial needs of the South Africans. This prompted them to create personal loan plans according to these requirements. 
  • African Bank is transparent with its customers. They will let you know the total costs of your loan before you borrow it. 
  • Lastly, the bank works in compliance with the National Credit Act No, 34 of 2005. This makes them a certified credit provider in the country. 

African Bank personal loans: How does it work?

If you are thinking of applying for African Bank personal loans, here are a few things you must know.

  • Loan amount: When you apply for a personal loan at African Bank you can get a maximum loan of R250, 000 with a repayment term of 7 to 72 months. 
  • Fixed repayments: The bank gives fixed repayments which means you can always plan your budget prior. 
  • Easy application: The bank has a simple, quick, and easy application process. You can either apply online or visit the nearest branch for the application process. 

African Bank personal loans: What are the requirements?

If you apply for loan online with African Bank, these are the requirement you need to fulfil. 

  • Proof of residence
  • Proof of income that shows salary deposits for the past 3 months
  • Bank statements that show salary deposits of the past 3 months
  • The minimum age should be 18 years or more
  • Active email address
  • Valid ID issued by the South African government

African Bank personal loans: What are the interest rates?

The interest rates at African Bank range from 15% to 27.75%. The insurance rates range from 5.04% to 5.4%. 

African Bank personal loan: What is the application process?

The first step to applying for a personal loan at African Bank is using the loan calculator. The loan calculator will allow you to determine the monthly repayment amount for the loan amount and the terms you have chosen. This will allow you to make an informed decision. 

Once you have chosen the loan amount and term that suits you best, you can fill out the application form and upload the documents. The representatives from the bank will get back to you for verifying the information. Once your application is verified and approved, the loan amount will be deposited in your bank account right away. 

African Bank personal loans: Advantages

  • The bank deposits the loan amount in your bank account after the approval of your application. 
  • The repayment amount is fixed that allows you to plan your budget prior and never miss a payment. 
  • The bank provides flexible repayment terms with a maximum loan term of 72 months. 
  • You can easily make the application online. You don’t have to go anywhere to make the application. 
  • If you choose the break option, you can skip few payments on qualifying products. 
  • The interest rates offered by the African Bank are competitive. 
  • The bank also provides loan settlement options in the event of disability, illness, death, retrenchment. 

African Bank personal loans: Repayment options

If you want to know your repayment dates, you can check the loan agreement. You need to make the first repayment seven days after the loan amount is deposited in your account. 

After this, you can deposit the repayment amount every first day of the month. You can use the following modes of repayment:

  • Direct debit order from your bank account
  • Payroll deduction
  • In-store payments
  • Monthly deduction on your payday
  • Visa or Mastercard payment
  • EFTs

African Bank personal loans: Benefits of applying

  • Manageable

One of the biggest benefits of African Bank personal loans is that you have a large amount to cover your expenses rather than smaller and multiple amounts generated from your credit card. This allows you to manage everything easily. 

  • Improve Credit Score

Taking out an African Bank loan will allow you to improve your credit score. You can use the loan to repay your other debts thus giving a boost to your credit score. You can also improve your credit score by paying back your African Bank personal loan in the given time. Having a good credit score is important as banks will check the score before approving your loan application.

  • More Money than Credit Cards

African Bank personal loans give you more money than credit cards at fixed interest rates. This makes it easier for you to cover your expenses. 

African Bank: Other types of loans available

  • Debt Consolidation Loan

If you want to get loan online, you can also apply for a debt consolidation loan. This will allow you to repay all your smaller loans. 

  • 15% loan

A low-interest loan offers fixed interest rates of 15%. This loan has flexible payment terms and fixed interest rates. You can get this loan online, over the phone, or by visiting the nearest African Bank branch. 

  • Value-Added Deals

The bank goes a step further by collaborating with South African brands that can offer you education and entertainment vouchers. This will improve your credit. You can choose the deal as per your preference and add it to your credit. 

There are few other things you should know about African Bank loans.

  • You can’t get a loan from an African bank if you are blacklisted. You can apply for a consolidation loan.
  • The maximum loan amount you can get from African Bank is R250, 000. 

Now that you know everything about African Bank loans, you can visit our website Snappy Loan to search, review and compare different loan offers. 

You can not only find loan offers from African Bank but also other lenders and loan providers. Visit the website now.

Categories
Personal Loans

First National Bank Personal Loans: All Things You Must Know

short term loan

The First National Bank (FNB) is amongst the leading banks in South Africa trusted by several people in the country. Being a certified lender under the National Credit Act, this bank is one of the best choices you can make if you want to take out a personal loan. 

But do you know the complete process of applying for an FNB personal loan? Do you have a comprehensive knowledge of different aspects of FNB personal loans? If not, keep reading this article to find out more. 

First National Bank- How do they work?

Briefly, in the First National Bank loans, you can take out a minimum loan amount of R1, 000 and a maximum loan amount of R300, 000. The minimum loan term is 1 month whereas a maximum loan term is of 60 months. 

The interest rates for FNB personal loan varies with a minimum interest rate of 12.75% and a maximum interest rate at 27.75%. 

Also, the overall process of applying for an FNB personal loan includes applying for a loan on the FNB website or in the nearest branch. You will also provide all the required documents with the application. 

Upon approval, the loan amount will be credited to your bank account. You can use the loan amount for any purpose you want and start repaying your loan on the agreed amount and term. 

FNB personal loans- How to use them?

FNB personal loans are a general credit loan, hence they can be used for several purposes such as 

  • Building your new home or renovating the existing one
  • Covering your wedding expenses
  • Use it to cover your holiday expense
  • Cover any other unplanned or planned costs

First National Bank personal loans- Advantages

Applying for a personal loan at FNB has several advantages. This is the reason why FNB personal loans are popular in the country. 

  • Based on individual circumstances and credit reports, FNB offers personalized interest rates when you apply for the loan. 
  • FNB offers flexibility in the loan amount. You can apply for a minimum loan amount of R1, 000 and a maximum loan amount of R300, 000. 
  • FNB loans also provide unsecured loans that mean you don’t need to give any collateral.
  • FNB loans provide flexibility in making repayments. You can maximum loan term of 60 months. Also, since you have a fixed interest rate, the repayment loan amount doesn’t change making it easier for you to manage your budget every month. 
  • FNB also protects its customers with a Customer Protection Plan (CPP). This plan is much like credit insurance that protects you in case you fail to repay your loan in situations like death, illness, disability, or a global pandemic. 
  • You don’t have to pay any penalty fees if you make early repayments. 
  • With FNB, you also get Take-a-Break January where you can skip repayment for this month if you have spent too much during the holiday season. However, this just an option. If you wish to repay in this month too, you can very much do so. 

Take-a Break January: Little more info

As mentioned above, Take-a-Break January is a convenient option offered by the FNB. In this option, you can skip your repayment for January. However, if you have enough budget for the month, make sure you make the repayment. 

Also, this option is available for those customers who have a loan term of more than 6 months. And to avail of this option, make sure you have an up-to-date monthly repayment deposits for the past months. 

FNB personal loan interest rates: Briefly explained

The FNB interest rate is capped at 27.75% as per the regulation set by the National Credit Act. Also, the bank provides a fixed interest rate.

This fixed interest rate is personalized based on the individual customer’s circumstances. The two factors that are considered for this personalization are the credit score and current financial conditions. 

FNB personal loans: How to apply online?

If you want to apply for loan online from FNB, you need to fulfil the following requirements:

  • You must be a valid South African resident
  • Must be 18 years of age or above
  • Must have a valid and active South African bank account where your salary is deposited
  • You must be either employed or self-employed

You also need to provide the following documentation during online loan application:

  • Your latest payslip
  • A valid South African ID issued by the South African government
  • Proof of residence
  • You need to provide 3 months of bank statements if you don’t have an FNB account
  • If you are self-employed and don’t have an FNB bank account, you need to give bank statements for the past 6 months

FNB personal loans: A few key points to know

  • Using an FNB personal loan calculator, you can calculate your monthly repayment amount. You can read our previous blog on FNB personal loan calculator on our website.
  • If you want to make an online loan application for FNB personal loan, you can visit our website Snappy Loan. We give you a quick way to review the latest loan offers from FNB bank. You can click on ‘Snap It’ and will be taken to the lender’s website for online application.
  • When you have applied for FNB personal loan, the loan amount will be credited to your account either in a couple of hours or a few days upon approval. However, the pay-out time also depends on the type of credit you are applying for. 
  • You can easily make your repayments for FNB personal loans. You can do it via FNB ATM, FNB app, online, and cell phone banking with EFT. You can also create a monthly debit order. Or you can deposit by visiting the nearest branch or ATM. 
  • With FNB loans, you also get a top-up option. If you have already taken out a loan with the bank, you can apply for additional funds. The maximum limit for additional funds is R300, 000 for a term of 60 months at fixed interest rates and no initiation fees. 
  • Apart from personal loans, you can also apply for student loans, debt consolidation loans, short term loan, revolving loans, credit cards, and overdraft loans. 

Now that you know everything about FNB personal loans, you can visit your nearest branch or our website Snappy Loan to make an application.

Categories
Personal Loans

Nedbank Personal Loans: Crucial Information You Need to Know!

personal loan

When you decide to take a personal loan, you need to make sure that you choose a lender that is certified and reputable. One of the lenders that you can choose to take out a personal loan is Nedbank. 

Nedbank is one of the reputed and trusted South African lenders that provide a personal loan that can be used for various purposes. But do you have complete information about the loan procedures at Nedbank? If not, you must keep reading this article to know more. 

Nedbank personal loans: Documents needed?

To apply for Nedbank personal loans, you need to present the following documents:

  • Valid South African ID issued by the government
  • Recent payslip for the past one month or an employment letter as proof of income. 
  • Bank statement of the past three months showing your account activity. 
  • Residence proof, you can give utility bills such as water bills or electricity bills. However, the proof should not be older than 3 months.

Nedbank personal loans: Other requirements?

Apart from the documents above, you need to also fulfill the following requirements:

  • Have a good credit score
  • Must be employed or self-employed
  • Must have a minimum monthly salary of R3, 500. Additionally, this salary must be deposited in your account electronically. 
  • You must be a minimum of 18 years of age or above. 

When you apply for a personal loan from Nedbank, you can get a minimum loan of R2,000 and a maximum amount of R300, 000. 

Nedbank personal loans: Interest rates?

When it comes to interest rates of Nedbank personal loans, you need to pay 27.5% on your loan. However, due to continually market changes, these interest rates can change. Sometimes, they can go as low as 10%. Whenever a bank provides an interest rate on its website, it is usually an estimate. 

This can change based on the amount you take out, the loan term, the day you are applying, and several other factors. Estimated interest rates are given so that you get an idea, and you can budget your monthly expenses accordingly. 

 Nedbank personal loans: Other costs?

As mentioned above, that apart from interest rates, there are some other additional costs involved in calculating the overall cost of your loan. For Nedbank personal loans, there is an initiation fee and monthly administration fees. Here’s an example of the calculation.

For example, you take out a loan of R50, 000 for a term of 5 years (60 months). The initiation fees for this loan will be R1,207.50 and an administration fee of R69. Say the current interest rate is 24.75% along with a maximum APR of 29.3%. Based on these parameters, the total cost of your loan comes out to be R95, 842. 

This gives you a rough idea about how the total cost of the loan is calculated and what costs are included in the calculation. This can help you better decide the loan amount and determine whether you can afford the loan. 

Nedbank personal loans: How to apply online?

Applying for a loan online with Nedbank is easy and hassle-free. You can follow these steps to apply for loan online with Nedbank.

  • Start by calculating whether you can afford the loan or not. You can use the Nedbank personal loan calculator to determine your monthly repayment amount for a chosen loan amount and term. 
  • Once you have chosen the loan amount you want to take out, you can begin filling the application. 
  • On the website, you can start by choosing ‘Apply’, followed by ‘Borrow’ and lastly ‘Personal Loans’. Start filing your application. 
  • You need to login into your Nedbank account. If you don’t have an account, you can open that in just a few minutes. 
  • You need to provide all the required information and documentation to finish your application. 
  • Once you have submitted your application, you need to wait for the approval. Once your application is approved, you will get the loan amount in your bank account directly. 

Nedbank personal loans: How do I pay the loan back?

When you have taken out a loan with Nedbank, you need to pay back the loan by depositing a monthly repayment amount. 

This amount will depend on the loan amount, the loan term, and interest rates. You can use the Nedbank calculator to determine the monthly repayment amount for your loan. This is usually the first step before application. You can also read our previous articles on using the Nedbank calculator. 

Nedbank personal loans: What if I fail to repay?

There can be certain situations where you might not be able to repay your loan. To tackle this situation, Nedbank asks you to take a personal loan protection plan. You can either opt for the protection plan provided by Nedbank or you can also choose another insurer. Make sure the insurer can fulfill the requirements of Nedbank.

Such a personal loan protection plan will prevent your rights during situations such as death, illness, disability, or retrenchment.  However, if you fail to repay your loan due to reasons not covered under the plan, you will face legal actions along with a bad credit score. 

Nedbank personal loans: Benefits

  • An easy and hassle-free loan application process
  • Affordable loan with the best possible interest rates
  • Upon approval of your application, you will get the loan amount in a few hours directly in your bank account
  • Repayment terms are quite flexible.
  • Direct debit of your monthly loan repayment amount from your account
  • Nedbank is certified and registered under the National Credit Act

Apart from personal loans, you can also Nedbank for other types of loans such as vehicle loans, student loans, home loans, credit card loans, and overdrafts.

If you want to get loan online from Nedbank, you can visit our website Snappy Loan to get a comprehensive overview of the loan offers from this bank. 

We have already researched and curated the loan offers from the best lender in the country. You can review and determine the loan offer you need with just a few clicks. So, visit our website Snappy Loan now and get the best personal loan for your needs.

Categories
Personal Loans

Calculate Your Monthly Repayment with Absa Personal Loan Calculator

personal loan

Are you planning on taking out an Absa loan? If so, you might want to keep reading this article for further information. Although taking out an Absa loan is not tough, making it stress-free is our goal with this article.

In this article, we will tell you about a free Absa loan calculator and some more information about the types of Absa loans. With this article as your guide, it will be easy for you to apply for Absa loans.

The repayment calculator offered by Absa will help you to calculate your monthly repayment. This will give a better idea if you can afford the chosen loan. But before we tell you about the Absa personal loan calculator, let us give a brief about Absa loans.

Absa personal loans: Quick information

  • The amount you can borrow: R250 and R350, 000 is the range of amount you can borrow from Absa personal loan
  • Loan term: The loan term range for making your repayment is between 12 to 84 months
  • Interest rates: The base interest rate for an Absa personal loan is 21%. The charges also include service fees.
  • Application requirements: If you want to apply for Absa personal loans, you need to have a valid South Africa ID, latest payslips, and bank statements.

If you want to know more about Absa personal loans, don’t hesitate to visit their official website.

Absa personal loan calculator: How does it work?

The personal loan calculator offered by Absa is straightforward and simple to use. Here is how it works:

  • You can use the slider and move right or left to choose the loan amount you seek. Alternatively, you can also type the loan amount manually.
  • Use the adjacent slider and move it right or left to choose the loan repayment term. Alternatively, you can enter the loan term manually.
  • Get your results by clicking on ‘Calculate Repayment’.

Absa personal loan calculator: What factors determine the calculation?

  • Loan amount: The usual loan amount that most people can apply for is between R3, 000 to R250, 000. But this amount will vary based on how much you want to borrow and the purpose of borrowing. Another thing that determines the amount is how much you can afford. If you take a higher loan amount, you have to pay higher monthly repayment and vice versa.
  • Loan term: The amount of time that you will need to repay the loan amount is known as the loan term. It is in months and will determine your monthly repayment. If you choose a higher loan amount, you will need a longer-term to avoid putting pressure on your budget. You will also have a lower monthly repayment amount.
  • Interest rates: The last factor that determines your monthly repayment is interest rates. The rates are included in your monthly repayment along with other charges.

So, when you apply for loan online with Absa, make sure to calculate your monthly repayment amount ensuring that you afford the loan.

Best monthly repayment: How to choose?

Based on what you select on the slider, the calculator will give you the monthly repayment amount. But how do you determine which repayment amount might be the best choice for you? Here is how:

  • Want to reduce the overall cost of your loan? If you want to reduce the overall costs of loans, you can check out the debt consolidation loans offered by Absa. The debt consolidation loan will help you group all your existing loans in one leaving only one loan to repay. This way you can reduce the overall loan costs.
  • Want a lower monthly repayment?If you have a lower monthly repayment amount, it will be easier for you to afford it without putting too much pressure on your budget. You can easily manage your monthly expenses while paying your monthly repayment. The best way to ensure a lower monthly repayment is by choosing a lower loan amount or a longer loan repayment term. Just remember, that you will have to pay higher interest rates if you choose a longer loan repayment term.

Absa personal loan calculator: Benefits

When you want to get loan online for covering your expenses such as a home, car, wedding, or holiday, you need to know if you can afford it. A loan calculator can help you determine the same.

  • Convenient Tool: A loan calculator is a convenient tool to determine your monthly repayment amount. If you try to do it manually considering the interest rates, you might make a mistake and that would cost you a lot. So, using the calculator, you just have to enter the values and click calculate. The loan calculator will give you the repayment amount.
  • Accurate Estimate: When you use a loan calculator, you will get an accurate estimate of the monthly repayment. You can get a fairly good idea of if you can afford the loan or not. You can also change the loan term and amount to see different monthly repayment amounts to make an informed decision.
  • User-Friendly: The loan calculator is extremely easy to use. Also, you can access the loan calculator anywhere anytime. You can use them on your smartphones, laptops, desktops, or tablets. Absa loan calculators help you compare different loan offers easily and choose the right one.

What to do after using the Absa online calculator?

Once you have used the loan calculator to determine your monthly repayment amount, it is time to apply for the loan online.

If you want to choose the right Absa loan offers, you can check out our website Snappy Loan. We have loan offers from all the leading banks, financial institutions, and loan providers.

You can search, review, and compare different loan offers from different lenders. You can choose the loan that suits you the best and click on ‘Snap It’. You will be taken to the lender’s website, where you can fill the form and upload the required documents.

Once submitted, wait for the approval. Once the loan is approved, you will get the loan amount in your bank account.

With us at Snappy Loan, applying for a loan is easy, hassle-free, and quick.

Categories
Personal Loans

Unsecured Personal Loans in South Africa: All You Need to Know!

personal loan

Have you been thinking of taking out an unsecured loan? Do you know everything there is about an unsecured loan to make an informed decision?

Since you are reading this blog post, we assume that you don’t have complete information about unsecured loans. Moreover, you might have been confused with so many options on the market.

Don’t worry! In this blog post, we give you a comprehensive overview of unsecured loans that will help you make an informed decision.

What is an unsecured personal loan?

Now, firstly, let’s understand what a personal loan means. So, in brief, personal loans mean borrowing money from a financial institution such as a bank to cover large expenses. You can use personal loans to cover your wedding expense, university fees, renovation of home, or any such personal requirement.

An unsecured personal loan means that you don’t have to provide any personal property as collateral. All you need to do is apply for the loan and get the loan amount without putting your personal property at risk.

Unsecured loans: How do they work?

As said above, that you don’t have to risk your personal property for an unsecured loan. However, this is the reason why unsecured loans have higher interest rates.

Higher interest rates ensure to protect the lenders if you default at paying your monthly repayments. Also, some of the unsecured loans have a borrowing limit for the same reason.

But the overall following is the comprehensive review of unsecured loan:

  • Minimum loan amount: R1, 000
  • Maximum loan amount: R350, 000
  • Loan term: The usual loan term is 1 month to 84 months (7 years) for repayment of a loan.
  • Interest rates: 27.5% is the maximum interest rate for unsecured loans in South Africa.

Apart from unsecured personal loans, you can also choose from other unsecured loans such as payday loan, student loans, and lines of credit.

Unsecured loans: When is the best time?

Since you don’t have to keep the personal property as collateral for taking out an unsecured loan, you can apply for it any time. But it is wise to take out an unsecured loan when you need it the most.

Always remember, you must repay the loan with interest rates in due time. So, apply for an unsecured loan when you the utmost need for money. Here are some situations where having an unsecured loan might be helpful.

  • Buying essential items: If you intend to buy essential items such as a laptop, electronic items that make your life easier, an unsecured loan can assist you with that. If you need money to fix your car, you can apply for an unsecured loan in that case too.
  • Emergency: If you encounter a medical or family emergency, taking out an unsecured loan will be advantageous to cover the expenses.
  • Holiday or wedding: These events are quite expensive, but they add value to your life. And if you need financial help to pay for them applying for an unsecured loan would be a great idea.
  • Debt consolidation: If you have several smaller debts, you can use an unsecured loan to consolidate those debts effectively. Now, you will have only one debt to repay.
  • Investment: If you want to invest in something that will give you profit over time, you can use an unsecured loan.

Secured Vs unsecured loan: The comparison

  • As mentioned above, you don’t have to put your personal property such as a car or home as collateral when you take out an unsecured loan. On the contrary, secured loans need collateral.
  • If you take out unsecured loans, there is no risk of losing your personal property. If you default at repayment. Whereas in a secured loan you can use your property to cover the repayments.
  • Unsecured loans have higher interest rates as compared to secured loans.
  • Lastly, there are some unsecured loans where you must face a borrowing limit. Also, unsecured loans have stricter requirements and if you have poor credit, you might not be able to apply for an unsecured loan.

Unsecured loans: Advantages and Disadvantages

When you are borrowing money from a financial institution, you must consider the benefits and disadvantages.

  • Benefits of unsecured loan:
  • You don’t risk losing your asset since unsecured loans don’t need any security.
  • When you opt for unsecured loans, you can use the money for any purpose.
  • If you fulfil all the requirements of unsecured loans, applying for them is quite easy. You apply for loan online easily with just a few steps.
  • Disadvantages:
  • Unsecured loans have higher interest rates
  • You might have to repay your loan on short term
  • You might not be able to borrow larger amounts as some of the unsecured loans have borrowing limits.

Unsecured loans: How to choose?

  • Borrowing amount: Make sure to decide on how much loan amount you want to borrow. You must be able to afford the loan amount as you need to repay it in due time. Find a loan that can give you the said amount.
  • Interest rates: Although, unsecured loans have higher interest rates, you can find some unsecured loans that can offer affordable rates. Also, you need to choose between variable interest rates and fixed interest rates.
  • Annual Percentage Rate (APR): Make sure to choose an unsecured loan that has a low APR. This will allow you to keep the overall loan cost down.
  • Additional features: Make sure to find as much information about the loan as possible. You don’t want sudden surprises! For example, some unsecured loan asks for credit protection fees that cover in case you lose your job, or you die.

Unsecured loans: Application requirements

The general application requirements for unsecured loans are:

  • Minimum monthly income (depends on the lender)
  • Valid ID issued by the South African government
  • Good credit history
  • Proof of income (payslips for the past 3 months)
  • Minimum 18 years of age or above.

Based on the above information, you can visit our website Snappy Loan to search, review, and compare different unsecured loan offers. Once you have chosen a loan offer, just click on ‘Snap It’ and go to the lender’s website. You can fulfil the requirements and apply for a loan right away. Visit our website now to know more.

Categories
All Personal Loans

Personal Loan in South Africa: A Complete Guide!

short term loan

As per the latest statistics, around 40,000 people search and apply for a personal loan in South Africa. If you are one of them, clearly you are not alone. But do you have a complete guide about a personal loan that will help you navigate your search and application?

Well, in this blog post, we give you a complete rundown of personal loan in South Africa. So, let’s get started, shall we?

Personal loan: What is it?

When you borrow money from a financial institution to cover any financial gaps, it is a personal loan. Since you have borrowed money from the lender, you ought to pay it back. Following are the general features of a personal loan:

  • You can get a personal loan for an amount between R2, 000 to R300, 000.
  • You need to pay back the money in a span of 1 month to 84 months (7 years)
  • You can use the funds for several general purposes such as covering wedding expenses, home renovation, buying a car, debt consolidation, and more.

Standard terms: Definition

  • Loan terms:
  • Principal Amount: This is the base amount that you borrow from the lender. This amount does not include any interest charges or any other fees.
  • Term of Loan: This is the time in which you need to pay back the loan amount. For a personal loan, the loan term is between 1 month to 84 months (7 years).
  • Interest: This is the amount charged by lenders on the borrowed amount. This can vary based on the lender as it is decided by the lender.
  • Monthly Repayment: This is the amount of money you pay back to the lender monthly. This amount is meant to cover your principal amount and interest rates charged by the lender.
  • APR: This is the annual percentage rate also known as the comparison rates. This rate includes all the other debt charges and interest rates.
  • Terms for your situation
  • Credit History: This is the history of all different types of loans you might have taken from the lender. It also shows how you made your previous repayments. In South Africa, you are entitled to have one complete credit report for free.
  • Credit Score: This score is evaluated from your credit history. The score indicates how good you are at repaying your debt. A credit score of 800 and above indicates that the lender can trust you for repayment of the loan. However, a credit score below 579 is not a good indicator. It shows the lender you can default on the loan repayment.
  • Drawdown: Once your application is approved, the lender will draw down the loan amount in your account. You can start using your loan amount as you want.
  • Defaulting: So, if you fail to pay your monthly repayment amount, you have defaulted on your loan. Defaulting can lead to a poor credit score.

Personal loan: How do they work?

Following are the steps generally involved in applying for personal loans in South Africa:

  • Compare Loans: There are different types of personal loan plans offered by lenders. Each plan has different terms and conditions. So, you must compare each credit plan before you choose the one that suits you.
  • Checking Qualification Requirements: Once you have finalized a loan plan that suits your needs and budget, you must ensure that you fulfil all the eligibility criteria such as minimum age or proof of income.
  • Contacting the Lender and Applying for a Loan: Once you fulfil the requirements, you can contact the lender and apply for loan online or going to the nearest branch office.
  • Approval and Agreement Creation: Once your application is approved, the lender will make a loan offer. Once you accept the loan offer, an agreement will be created that will have the terms and conditions for the loan repayment. Once agreed and signed, the lender will draw down the loan amount. You can start using the money for your needs.
  • Repayment: Usually, you must make monthly repayments to the lender. The amount will depend on your credit amount and interest rates. Make sure not to default on the repayment to avoid penalties.

Personal loan: What are the types?

Credit providers who are registered to give personal loan offer to people in South Africa provide different types of personal loans. The type you choose depends on your requirements and if and how you will repay it.

Following are the different types of personal loan:

  • Unsecured Loan: This type of personal loan doesn’t need any type of guarantee however, it comes with higher interest rates.
  • Secured Loan: This type of personal loan needs an asset or property as a collateral guarantee. The loan has lower interest rates and other perks too.
  • Debt Consolidation: If you want to repay all your smaller loan amounts in one go, a personal loan can be used as a debt consolidation loan. You will now have just a single account for a loan.
  • Student Loans: A type of personal loan, this is used to pay for your education and living expenses.
  • Lines of Credit: Just like credit cards, this type of personal loan comes with a maximum credit limit. The repayment depends on how much credit you have used.
  • Overdraft: When you withdraw a small amount of money even when your bank balance is low, this is known as an overdraft loan.

Personal loan: Minimum requirements

  • Self-employed or employed
  • Minimum 18 years of age
  • Must have a regular monthly income
  • Must have a South African residence permit or citizenship

Personal loan: Documentation

  • Valid ID issued by the South African government
  • Residence proof
  • Payslips for the past 3 months as proof of income
  • When you are taking a secured personal loan, don’t forget to give ownership proof for the asset you are using collateral.

So, now you know the basics of personal loans and how you can apply for them. To know more about the latest offers on personal and short term loan, don’t forget to check out our website Snappy Loan.

On our online platform, you can search, compare, review, and apply for a loan online. With just a few clicks, you will be approved for a loan offer and you can get the loan amount in a short while. Make sure to repay the loan amount without defaulting to avoid penalties. Visit our website to know more!