African Bank Limited is a South African retail bank that provides financial products and services. It is headquartered in Midrand, Gauteng, offering a nationwide branch distribution network, as well as a fully digital channel offering sales, collections, and customer support Contact Centres.
The bank was granted a license to operate as a “locally controlled bank” by the South African Reserve Bank.
The bank serves customers based in South Africa, offering loans, online banking, investments, deposits, credit cards, and insurance services.
With that being said, this article will solely highlight African bank loans.
Loans at African Bank
African Bank offers the following types of loans:
1. African Bank Personal Loan
African Bank offers personal loans from R2 000 to R350 000 with flexible terms and repayment, you can choose to repay your loan over 7 to 72 months with an interest rate (APR) from 15% to 24.50%.
The application process is quick and easy, you may apply for an African Bank personal loan online, over the phone, or you can visit your nearest branch.
What you need to apply for a personal loan at African Bank
To acquire a Personal Loan offer that fits your needs, you must have the following documents on hand:
- Most recent proof of income, such as a payslip
- To apply for a loan, you must be at least 18 years old.
- The latest three-month bank statements, containing three salary deposits.
To get started, you can use the loan calculator to have a better understanding of how much your monthly repayment will be.
2. African Bank Consolidation Loan
You can combine up to 5 loans into 1 easy-to-manage consolidation loan of up to R350 000 and save money with lower repayments with locked interest.
The consolidation loan does not require settlement quotes and you can improve your cash flow with a repayment that has flexible terms, from 12 to 72 months. You will be allowed to also take a break on your repayment.
3. African Bank 12% Loan
With the 12% loan, you will have peace of mind knowing that your interest is low and fixed at 12% with a fixed monthly repayment.
It has flexible repayment terms, from 18 to 24 months, allowing you to budget well as you will know the amount you will be repaying from month to month.
12% loans offer up to R50 000.
4. African Bank Value Added Deal
Get more value for your money by adding a cellphone, tablet, or laptop to any loan that you apply for.
The Payments and Repayments Process
The first step is to apply for the loan that you need. After submitting your loan application, your information will be examined, and if you are approved, the loan amount will be deposited straight into your bank account or to the third party listed in your contract.
When your credit application is granted, payment will be provided to you in one of two ways: immediately into your bank account or, in the case of external settlements or payments, it will be paid directly to the third party as specified in your contract.
The credit agreement includes a mandate that you will sign authorizing African Bank to accept payments via your preferred means of payment. Your repayment dates are set out on the front page of your agreement.
Debit order and payroll deduction are two repayment possibilities.
The first instalment is due 7 days after African Bank has made payment to you or on your behalf unless your next salary day comes within the 7-day period, then payment is due solely on your next salary date.
All subsequent instalments are due on the first day of each month. However, African Bank will try to match your instalment date to your salary date as closely as possible.
What if I Struggle to Repay My Loan?
It’s important to contact African Bank to make alternative payment arrangements. Before you make an arrangement, draw up a budget and work out how much you can afford to pay. African Bank will consider different options (based on your personal circumstances, payment, and spending behaviour) to support you.
Payment arrangements: African Bank can assist you to bring your account up to date. To make a payment arrangement you can contact them on 011 207 4500 or 011 564 7200.
Debt counselling: You may seek the help of an independent debt counsellor, or apply for alternative dispute resolution or debt administration. Be sure to enquire about the additional cost before you make use of their services. Contact the NCR on 0860 627 627 for the contact details of a debt counsellor in your area.
Payment Break: In certain instances, African Bank may be willing to assist you with a payment break. Terms and conditions apply.
In conclusion, it is important to note that with any African bank loan, the greater the interest rate, the higher your monthly payment and the more expensive the loan will be.
The lower the monthly payments, the longer the loan period. The lengthier term, on the other hand, will increase your total cost of credit.
So, make sure you fully understand the loan terms before signing the agreement and repay your loan in time so that you maintain a good credit record, and ultimately improve your ability to obtain credit in the future.