Do you need a low-interest personal loan, but unsure what bank to turn to? We’ve rounded up The Big 5 Banks offering personal loans in South Africa. Best of all, the loan application is 100% online, so there is no need to leave the comfort of your home!
These local banks are leading the way in low-interest personal loans
1. African Bank
A firm favourite when it comes to getting quick access to low-interest personal loans in minutes. African Bank is a locally controlled bank currently under the curatorship of the South African Reserve Bank. African Bank personal loans offer flexible terms, vital cover, and you can apply for any amount up to R250 000. Their convenient loan application process allows you to apply and pay off your personal loan either online or through their app.
FNB has a great reputation for innovative banking and tailored personal loans. In addition to this, their application process is clear and easy. Within a couple of clicks, you’ll have your loan approval status! If your FNB personal loan is up to date, you will automatically qualify for a ‘Take-a-break January’ – a much-deserved loan repayment break. They have an additional offer where you encounter no penalty fees involved when you settle your debt early. In addition to that, your repayment amount will stay the same each month, and you’ll have up to 60 months to pay.
Nedbank is a South African owned bank with an excellent track record.
If you want to get a Nedbank personal loan, you’ll need to follow these requirements:
- to be permanently employed or employed under a contract or be self-employed;
- to earn a net salary of at least R3 500 a month, with a minimum basic salary of R3 500 a month deposited electronically into your bank account;
- your stamped bank statements for the last 3 months (reflecting your salary);
- your proof of residence, such as a utility bill or any statement of account.
After you’ve received your personal loan approval, you’ll have flexible repayment periods ranging from 6 to 72 months.
Capitec is a leading bank regarding quick low-interest personal loans, and they are real changemakers in the banking industry in South Africa. Furthermore, with its disruptive style, Capitec is challenging the status quo of personal banking. A Capitec personal loan has – included in the offer – free retrenchment and death cover. This means that at no extra cost you receive a credit protection plan (some minor conditions determine the amount that pays out in such situations). Looking for a small or big loan online – Capitec has your back with low-interest loans from anywhere from R5 000 to R250 000.
Absa is well-known in South Africa with a great reputation in banking. If you take out an Absa personal loan you will be offered a Credit Protection Plan. Absa also makes opportunities available for loan holders to make extra payments during the course of the loan. This allows you to pay off debit faster before interest can accumulate. If you are unsure about what you can afford to repay, then use their payment calculator to see what your loan repayment will be before you apply.
These Big 5 banks have really made their mark in the South African credit market. They continue to come up with forward-thinking ways to offer clients added benefits, as well as a simple and fast loan application process – especially for existing bank account holders.
Worried you may be blacklisted or whether you have a good or bad credit score before you start a personal loan application? Have a look at these two articles from the Fincheck Academy for guidance:
Our mission at Fincheck is to always help you make better financial decisions. Try our 3-click application process on our loan comparison page to get live offers so you can start your personal loan journey the better way.