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FNB Credit Switch debt consolidation loan overview

This is the core product most people are referring to when they talk about “FNB debt consolidation”.

Quick specifications

• Loan / Service type: Unsecured personal loan used for debt consolidation (Credit Switch)
• Main purpose: Settle qualifying debts at other providers and replace them with one FNB loan and one monthly repayment

Key practical points

*Subject to your profile and FNB’s current credit policy

• Loan amount: Typically up to around R360 000 for qualifying customers (many comparison sites refer to R300 000; the exact limit depends on your affordability and risk profile).
• Term: Up to 60–72 months, depending on the specific offer and campaign at the time.
• Interest rate: Personalised. FNB prices off the prime lending rate (currently 10.25% per year), and your actual rate will be higher or lower depending on your risk profile.
• Features: One monthly fee, one reduced repayment, FNB pays third parties for you, fixed monthly instalment by debit order, and a January “Take-a-Break” payment holiday on some personal-loan products.

Benefits

• One structured instalment instead of many small, scattered ones
• Lower blended interest rate compared with typical store and credit-card rates
• FNB pays other creditors directly, reducing admin and temptation
• Fixed monthly repayment that makes budgeting simpler
• Option for a January payment break on qualifying loan types
• Access to FNB App tools to monitor credit and spending
• Backing of a major, NCR-registered South African bank

Why choose FNB for debt consolidation?

Single point of control

You move from juggling several debit orders and due dates to one fixed instalment with one bank. That alone can reduce stress and the risk of late-payment fees.

Potentially lower overall cost than revolving credit

Many retail accounts and credit cards charge much higher interest than a structured personal loan. Turning that into a term loan can reduce your monthly interest bill, provided you don’t extend the term too aggressively.

FNB manages the switching for you

Instead of phoning every creditor yourself, FNB’s Credit Switch team handles pay-outs to your approved creditors when the loan is activated. That cuts admin and helps make sure the old debts are actually settled.

Strong digital support

With the FNB App and nav» Money, you can see all your accounts in one place, track your debt-to-income ratio, and get nudges when spending drifts. That’s especially useful in the first year after consolidation.

Established, regulated provider

FNB is a large, long-standing bank and an authorised financial services and registered credit provider (NCRCP20). You have the protection of the National Credit Act, NCR oversight and Ombud channels if something goes wrong.

Flexible terms and early-settlement option

You can choose a term that fits your budget – shorter for less interest, longer for a lower instalment – and you can pay extra or settle early if your finances improve.

Integrated banking relationship

If you already bank with FNB, income flows and behaviour data are visible to them. That can speed up approval and, in some cases, result in more competitive pricing.

Extra breathing room in January

The January payment-break option on some personal loans is practical in a South African context, where year-end and back-to-school costs strain most households.

Tools to avoid relapse

The same app that gives you the loan can help you avoid sliding back into bad habits – for example, tracking credit use and highlighting when you’re leaning on credit to cover essentials, which is a red flag for trouble.

Clear legal framework

Because FNB’s loans fall under the National Credit Act, there are clear rules about pre-agreement quotes, cooling-off, interest and fee caps, and what happens if you fall behind.

FAQs

1. What is FNB debt consolidation?

FNB debt consolidation usually refers to using FNB’s Credit Switch or personal loan to settle multiple existing debts and replace them with one FNB loan and a single monthly repayment. It’s a form of debt consolidation, not the legal “debt review” process.

2. How much can I consolidate with FNB?

Depending on your affordability and risk profile, FNB’s unsecured loan platform can go up to about R360 000. Many comparison tables use R300 000 as a typical consolidation cap. The actual amount you’re offered will be determined during the credit assessment.

3. What interest rate will I pay?

FNB uses personalised pricing. The base is South Africa’s prime lending rate (currently 10.25% per year), but your rate will be higher or lower depending on your credit score, income stability, and debt-to-income ratio. Good-risk clients may pay close to prime; higher-risk clients can be significantly above that.

4. Which debts can I include in an FNB consolidation loan?

Typically you can include unsecured debts such as store cards, credit cards, personal loans, revolving facilities, temporary loans, student loans and retail accounts. Certain vehicle or asset-finance contracts might be excluded or treated differently. FNB will confirm which accounts qualify when you apply.

5. Is FNB debt consolidation the same as debt review?

No. Debt consolidation is a new loan that settles existing credit and gives you one instalment. Debt review (also called debt counselling) is a formal legal process managed by a registered debt counsellor under the National Credit Act, with a court or tribunal order and protection from legal action on qualifying debts. If you’re already under debt review, you usually cannot take new credit such as a consolidation loan.

6. How long does approval and payout usually take?

For existing FNB clients with clean records, approval can be near-instant and funds (or creditor pay-outs) may follow the same day. For more complex cases or non-FNB clients, allow 1–3 working days for document checks, affordability assessment and pay-outs. This is approximate and depends on how quickly you provide information.

7. Will my monthly instalment definitely go down?

The instalment often goes down because the new loan can have a lower blended interest rate and a longer term than your current debts. However, if you choose a short term or your risk profile is poor, the instalment might not drop by much. You should compare the pre-agreement quote to your current total instalments before signing.

8. Will I pay more interest overall if I consolidate?

Possibly. Extending your term (for example from 24 months to 60 or 72) can mean paying more total interest even if the rate is lower. The trade-off is better monthly cash flow and a clearer payoff plan. A good rule of thumb is to aim for the shortest term you can reasonably afford.

9. Do I need to bank with FNB to get a consolidation loan?

You don’t have to be an FNB client to apply, but it’s simpler if your salary already goes into an FNB account. Non-clients usually have to provide more documentation (bank statements, payslips) and may face slightly different terms.

10. What documents do I need to apply?

FNB typically needs:

• Your green bar-coded ID or smart ID card
• Proof of residence (not older than 3 months)
• Proof of income (recent payslips or 3 months’ bank statements; or tax/statement proof if self-employed)

Existing FNB clients with up-to-date information sometimes don’t need to upload extra documents, as FNB already has your transactional data.

11. Can I take a new credit card after consolidating?

You can, but it’s usually a bad idea until the consolidation loan is well under control. The biggest risk with consolidation is running up new debt on newly freed-up limits. Many people end up worse off if they don’t close or reduce their old credit facilities.

12. What happens if I miss a payment?

If you miss a payment, FNB will follow normal collections steps: reminders, arrears interest, and possible adverse listings if the account stays in arrears. If the problem is temporary, it’s better to contact FNB early and try to make an arrangement. Long-term non-payment can lead to legal action.

13. Does FNB offer payment holidays?

Some FNB personal loans include a January “Take-a-Break” feature that lets you skip the first instalment of the year if your account is in good standing. This is not automatic and not a solution for ongoing affordability issues – it’s a built-in feature that slightly increases other instalments over the term.

14. Is credit insurance required on an FNB consolidation loan?

In many cases, credit life insurance (covering death, disability, and sometimes retrenchment) is mandatory on unsecured loans. You can use FNB’s policy or, under the National Credit Act, provide a compliant policy from another insurer. The cost of this cover affects your total monthly instalment, so it’s important to understand the premium.

15. How is FNB regulated?

FNB is a division of FirstRand Bank Limited, which is authorised by the Prudential Authority and Financial Sector Conduct Authority. For credit, FNB is a registered credit provider with the National Credit Regulator (NCRCP20). You can verify this on official government and NCR listings.

FNB consolidation loan application

Do I qualify?

You’re more likely to qualify for FNB debt consolidation if:

• You are 18–64 years old
• You are permanently employed or self-employed with a stable income
• You’re a South African citizen or permanent resident
• Your salary is paid into a bank account (ideally FNB)
• You can show that, after covering basic living costs, there is room in your budget for the proposed instalment

Having a very high level of existing debt, recent arrears, or judgments can reduce your chances. If you’re already under formal debt review, you generally won’t be able to take a new consolidation loan.

Requirements

Typical requirements for an FNB consolidation loan include:

• Valid South African ID document or smart ID card
• Proof of residential address (not older than 3 months)
• Proof of income (3 months’ payslips or bank statements; tax documents for self-employed)
• A list of the debts you want to settle (creditor names, account numbers, balances)
• For non-FNB clients, additional documentation as requested during the application process

Process

1. Gather your information
   –List your debts, collect your payslips, bank statements and proof of address.
2. Get a quote
   –Use FNB’s online channels (website or App) or speak to a consultant by phone or in-branch to request a personal-loan or Credit Switch quote.
3. Affordability and approval
   –FNB runs an affordability and credit check. They may ask for extra documents or clarification.
4. Accept the offer
   –You review the pre-agreement and quotation, check the instalment and term, and sign if you’re comfortable.
5. Settlement of existing debts
   –FNB pays your listed creditors where Credit Switch is used, or credits your account with the funds if you’ve agreed to settle some debts yourself.
6. Move to one repayment
   –Your FNB debit order runs each month; the old accounts should now show as settled or closing once payments reflect on their side.

Timeline

Typical timelines (approximate):

• Online/App pre-assessment: a few minutes for existing FNB clients
• Document submission and full approval: same day to 1–2 working days if everything is in order
• Payouts to creditors: usually within 1 working day after final approval, though it can take a bit longer for other banks and retailers to show the account as settled on their systems

The whole journey, from first enquiry to all creditors showing as settled, often falls within 2–5 working days, depending mainly on how quickly documents are supplied and how fast external creditors update their records.