Top banking providers ready to serve you
When it comes to banking in South Africa who doesn't want a bank who understands their needs and is willing to go the extra mile? Find out more about banking in South Africa and the various credit products offered.
With a number of South African banks all offering a multitude of products to suit your lifestyle and financial needs, we're spoiled for choice when it comes to choosing a banking partner.
Whether you are looking for general banking, online loans or finance for your car or home, these top financial services providers in South Africa offer it all!
Getting finance from a bank
Assuming you have a good credit record, and a steady job bringing in a monthly income, you will be sure to find a bank in South Africa to help you with finance. Most people apply for a loan from their bank but shopping around for better options and rates puts you in the driving seat.
Getting a personal loan from a bank
Personal loans are one of the most sought after credit types in South Africa. There are many reasons why we may need to get a loan, and sometimes, we need it fast. One such reason is that our monthly income does not cover our financial needs and unexpected costs come up without any warning. In particular times of the year, we need to pay out more money than we anticipated.
For example, during the beginning of the year, when school fees and uniforms need to be paid and bought, your car needs a full service or you have overspent on your Christmas budget.
These are just a few of the logical and real situations we all face. Price increases annually seem to creep up on us, while our salaries don’t always meet the increased prices. There are so many factors to take into consideration in today’s economic world. Personal loans and payday loans are readily available at all major banking institutes. With technology making life a lot simpler, you can now access most of these online loans, wherever and whenever you need to.
How long will it take to get a loan from a bank?
Turnaround times are quick, and banks offer customised loan repayment solutions to make your loan bearable and affordable. With the internet at your fingertips, you can browse through hundreds of websites, where loans are available. Bearing in mind, majority of the banking firms do require you to have a clear or suitable credit rating, which is essential for them to keep in line with the National Credit Act of South Africa.
Use a loan calculator to budget for a loan
To make life even easier for you, and help you budget for a quick loan, banks offer convenient loan calculators on their websites. This helps you to determine what you can afford to borrow, and how much it will cost you each month. Once you have applied through the required online loan application and process of the particular bank, your cash can in most cases, be paid into your bank account within just hours of approval.
We are lucky to have banking corporations which encourage responsible lending and abide by the terms of the National Credit Act. This allows banks to lend only amounts which you can afford to repay. They will not lend you more than you can afford to pay back comfortably, and drown you in debt or allow you to borrow when you have a bad credit hsitory.
Bank loan fees & interest rates
Clients, who are looking into applying for finance, need to understand the terms and agreements from the banking institutes. It’s important to readyour loan agreement very carefully before signing on the dotted line. It’s all very well to say you need to lend a specific amount of cash, but bearing in mind, there are costs involved in the transaction of these cards and short-term loans amounts. Interest rates are particularly high on short term loans. These loans are usually in smaller amounts over shorter repayment periods.
Ensure you know the full amount due before agreeing to the repayment terms. Lenders are encouraged to charge the amount that is endorsed by the National Credit Act, so ensure you are not being overcharged. Short term and payday loans should be used in cases of emergencies and times when you need that little boost in your bank account to make ends meet.
You can pay these loans off quicker, and not have years of debt to pay on one little loan.
Loan Options in South Africa
Banks offer two main loan options in South Africa. The first being short term and payday loans and the other being long term loans.
The differentiators are quite simple. Short term loans, as mentioned, are smaller amounts loaned over shorter periods. Payday loans can accommodate you till your next pay date. In some instances, there are options to pay off a payday loan over longer than a month, but these are not frequently found.
Short term loans and payday loans should be used as an emergency fund – or rather a quick cash fix. Repayment terms for these loans are usually over a couple of months. These loans are quite easy to obtain through online platforms, providing you meet the bank's lending criteria. The amounts available for short-term loans can range from R100 to as much as R30,000, depending on the bank you choose and affordability. Short-term loans are usually unsecured, which means you don’t need to provide any collateral when applying for cash.
Long term loans
These loans are of larger quantities, and longer repayment periods, for example, you can pay off these loans over periods of up to 10 years, and sometimes longer. This all depends on the amount you borrow, which can be amounts of R50 000 upwards.
There are many reasons for acquiring longer term loans and can be in the form of home loans as well. Long term loans can often unsecured, which mean you may need collateral to obtain the cash, or have someone sign surety for you in the event that you cannot pay back the loan amount.
With long term loans, online applications may not always apply due to the intrinsic matter of the loans. You may need to visit your bank and do a face to face application with your banker.
Debt consolidation loans
South Africans can easily find themselves overwhelmed with debt. It’s so easy to buy on credit, with retail stores handing out easy credit without performing credit checks. Quick cash is readily available to people who need instant loans for immediate use. Before you know it, you have overspent on your credit cards, your overdraft is maxed, and your retail store cards are overdue.
Banks offer the option of consolidating your debt. If you were paying six different amounts every month on debt which you have accumulated, you now will only have to make a single payment. By combining all of these debts into one loan and paying only one installment every month you make managing your debt easier and in some cases you pay less interest overall.
The monthly installment would be a smaller amount which will free up some of your income so that you can live more comfortably. Should your accumulated debt be extremely high, and you cannot afford to pay them off, then there are other options available like debt review.
How to choose a bank in South Africa
Before taking out a loan or choosing a banking partner in South Africa, remember and consider all your options. Choose a bank which best suits your needs, look at the different rewards you can obtain through banking with them, and do they cover a vast array of products you can benefit from.
Can you afford to take out a loan?
Can you afford the repayments taking into account the interest and rates? Does the loan offer insurance, should something happen to you? Will you get value from the accumulated interest on that savings option? Ensure you get flexibility – should you wish to repay your loan early, are you going to be penalised? There are many offers out there to compare.
Using more than one bank in SA
With a lovely mixture of banking service providers in South Africa, you have a range of options, products and benefits that you can enjoy. If you're looking to benefit from multiple rewards systems and products don't be afraid to open an account or take out a product from more than one bank.
Many South Africans use a certain bank for their everyday banking needs and debit orders but have a home loan with another bank. Mixing and matching products and banking services is simply smart money management at it's best!