When you consider getting one of the personal loans available in the South African credit market, you should have a precise idea about your option. The better informed you are as a buyer the better decision you will make. It is worth looking at the current minimum and maximum amounts that you can borrow at present.
Currently, the unsecured personal loans in South Africa are up to R300,000 in most cases. This is a pretty big sum.
In order to qualify for such a large loan, you must meet two important conditions. Firstly, in line with the rules and regulations set by the National Credit Act (NCA), you must have sufficient income to repay your debt. Secondly, you must have excellent credit record. You must have repaid your loans timely and in full in the past.
Generally, the loans for such big amounts usually have a term over 5 years. In most cases, it is 7 years. Since the longer term pushes up the cost of borrowing, you can have a shorter term set, but in this case, your monthly payments will be pretty big.
The minimum loan amount varies from one lender to another. Most banks including Nedbank and First National Bank set their minimum loan amount to R1,000. Standard Bank, on the other hand, is willing to grant a loan as small as R500. There are independent lenders that may be willing to extend a minimum sum of R250 but you have to check specifically. It is important to be aware of the minimums since you would not want to borrow more money than you need and pay interest on it.
Use this information on personal loans to help you in the search and comparison.