Standard Bank personal loans range between R500 and R 40 000. Personal loans are suitable for financing large payments or purchases, such as appliances, furniture, school fees, or if you require credit over an extended period.These personal loans have a fixed monthly repayment even if interest rates change, so you’ll always know how much you owe each month. Repayment terms on a Standard Bank personal loan range from three to 42 months. Should you need extra money you will have access to additional funds.
Revolving Credit Plan (RCP)
A RCP is a loan with a fixed monthly repayment. A unique feature of this product is that it allows you to borrow again up to your original loan amount, once you have repaid 15% of the loan.
The benefits of having a RCP:
- You can get a loan between R6000 and R120 000 (depending on your affordability and risk profile)
- Once you have repaid 15% of the loan, you may borrow again up to your original loan amount and your repayments will remain unchanged
- You can apply to increase the limit on your existing RCP when you require additional funds
- The minimum repayment remains fixed for the life of your loan account which enables you to budget more effectively
- The interest rate is linked to the prime rate and will be based on your risk profile.
- When the prime interest rate changes, your minimum repayment amount remains unchanged while the loan period increases or decreases.
- You can pay extra into your loan whenever you have extra cash. You can withdraw this extra cash once you have met the minimum revolve limit.
- You have the option of taking out insurance which will give you the peace of mind of knowing that your loan will be settled in full in the event of disability, dread disease, death and retrenchments
- The minimum amount you may borrow is R500 and the maximum is R40000;
- The amount you qualify for depends on your income and your credit risk;
- Your credit risk is determined by the information held with credit bureaus, the way you maintain any existing Standard Bank accounts and your personal circumstances.
Repayment period
- The minimum installment amount remains fixed for the duration of the loan;
- The minimum repayment term is 3 months and maximum term is 42 months;
- The installment amount is recovered from your transaction account through a debit order and the repayments will be aligned to your salary frequency i.e. fortnightly, weekly or monthly;
- The repayment period of the loan will be shortened by deposits made in excess of the minimum installment amount required.
Insurance
- Credit life insurance is compulsory for the Personal Term Loan product. Standard bank offers the Debt Protection Plan which covers you for death (natural or accidental), disability (temporary or permanent) and retrenchment;
- The associated premium is included in your installment calculation;
- Any policy other than the Debt Protection Plan may be used, provided that the policy provides similar cover.
Interest rate
- The interest rate offered will be based on your credit risk;
- The interest rate on your l loan is fixed and is regulated by the National Credit Act. This means the maximum rate that can be charged on your loan is capped at the maximum as determined by the act;
- Interest payable is calculated on your daily outstanding balance but charged to your account once fortnightly, weekly or monthly depending on your payment frequency.
Qualifying Criteria
- Be a South African citizen with valid South African identification
- Be between 18 and 65 years old
- Have a transactional account with any banks into which your salary is deposited
- Be formally employed
- Earn a minimum gross monthly salary of R1000