Personal Loans

First National Bank Personal Loans: All Things You Must Know

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.