Personal Loans explained
Where is the best place to secure a personal loan in South Africa?
You have the option to apply for your personal loan through various lenders, or you could utilize MyBanker to compare and apply for the most suitable loan offer.
MyBanker will reach out to numerous lenders on your behalf to gather loan offers for you. Should you be eligible for pre-approved loan offers, MyBanker will organize these offers in an easily comparable manner, enabling you to select the most favorable one. Subsequently, the lender will conduct their final checks and, upon qualification, disburse the funds to you promptly.
To apply, simply fill out the MyBanker application form and await the offers.
What documents are required when applying for a loan?
You’ll need your ID or passport for identity verification. Depending on the loan amount, you might also need to provide a recent proof of residence, such as a utility bill not older than three months, and three months’ worth of payslips or bank statements.
Flexibility might be needed regarding the loan amount and the repayment term. Many lenders offer up to 84 months (seven years) for repayment, but repaying the loan sooner can save on costs. If possible, aim to repay within a year.
Applicants must be at least 18 years old and possess a solid credit history. For online applications, documents can be securely uploaded on the lender’s website.
What should my monthly salary be to apply for a loan?
Banks and lenders have varying requirements for applicants’ monthly income, depending on the loan amount and term length.
Generally, for a smaller loan with shorter repayment terms (less than six months), a consistent monthly income of at least R4000 is expected.
For larger loans, lenders may require a significantly higher monthly income.
What else should I know about obtaining a personal loan?
Ensure you secure the best rate through MyBanker. Don’t settle for the first offer; compare different loans to understand the total cost by the end of the repayment term. Interest rates for personal loans are typically higher than those for secured loans like home or vehicle loans, due to the unsecured nature of personal loans.
Lenders will evaluate your repayment capability before making an offer. Understand how personal loans work, including their total cost and interest rate, before accepting an offer.
However, avoid overextending financially. Consider your regular expenses, such as housing, food, utilities, and other predictable costs.
The total cost of your loan, including interest, is influenced by the repayment period’s length. Personal loans do not require collateral.
How can personal loans be used?
Personal loans offer flexibility and can finance a variety of expenses, from home improvements and electronics to vacations and more.
How much can I borrow?
Loan amounts range from R100 to R250,000, based on the lender and your risk profile. Loan assessments can take from a few minutes to 48 hours, with offers reflecting the lender’s confidence in your ability to repay.
Accessing a personal loan is typically quick and straightforward, but interest rates and total repayment amounts can vary significantly. Comparing offers is crucial to find the best deal.
