African Bank consolidation loan: How does it work in South Africa?
Debt consolidation is one of the best ways to manage multiple debts. Essentially, a consolidated loan is a big loan awarded to qualifying clients to pay all current loans. It allows one to combine all unsecured debts into one monthly loan repayment. This article highlights the African Bank consolidation loan if you are considering taking this loan.
Source: UGC
Founded in 1975, African Bank is an authorized financial service and credit provider headquartered in Midrand, Johannesburg. The South African Reserve Bank (SARB) licenses the institution as a locally controlled bank.
Does the African Bank consolidate?
The African Bank consolidation loan allows one to bundle up to five loans into a single consolidation loan of up to R350,000. In addition, the bank offers flexible repayment periods ranging from 12 to 72 months.
Requirements to get an African Bank consolidation loan
African Bank has designed its debt consolidation loans to meet its clients' needs. Here are the criteria to meet to enjoy this service:
- One must be 18 years old and above
- Must possess a South African National ID
- One must have an income and provide the latest payslips, ideally for the last three months
- Must provide the latest bank statements
- Proof of residence
Source: UGC
How to apply for an African bank consolidation loan online
With access to the Internet, this application process can now be done in the comfort of your home. Follow the steps below for a seamless process:
- Go to the African Bank website:
- Click on the ‘’Personal Loans’’ tab
- Next, click on the ‘’Consolidation Loan’’ link
- Click on the ‘’Apply Now’’ button
- Create an account and fill in the application form
- Click ''Submit''
How much is the cost of the African Bank consolidation loan?
The bank levies the following charges for a consolidation loan. Note that all costs are inclusive of Value Added Tax.
- Annual interest rate ranges from 15% to 24 % annual percentage rate (APR)
- Monthly administrative fees of R69
- A one-off fee of R1,197
Payment and repayment options
Source: UGC
To pay any monthly charges or make an instalment to repay the loan, African Bank offers the following options:
- Use of a cheque to pay at walk-in branches
- The bank allows payment using stop orders
- Use cash to pay at a local African Bank branch
- Opt for payment using Internet transfers by choosing the bank as a beneficiary in an EFT transfer
- Use of debit orders
- Have the money directly deducted from your income
- The bank’s mobile payment mode by dialling *120*255#
- Pay online at the bank’s website
Is debt consolidation a good idea in South Africa?
A debt consolidation loan can be beneficial in the following ways:
- It helps minimize the stress from debt repayment because there is only one debt to worry about
- A good debt consolidation strategy can end up in lower interest payments
- Helps avoid bankruptcy if one is willing to adhere to the payment schedule consistently
- It offers a complete route to total debt freedom, thus a way out of the turmoil of being over-indebted
- Early principal payments also increase credit score
- This strategy will also reduce the calls and letters from collection agencies
Source: UGC
Debt consolidation with bad credit
It is possible to qualify for debt consolidation with bad credit. Nonetheless, paying attention to the terms and conditions is vital because the interest rates on personal loans for poor credit may sometimes exceed APRs on credit cards.
Now that you know the African Bank consolidation loan process, you will consider it if you are looking to find the easiest way to keep up with your credit payments while still having enough money left over.
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility.
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