The ins and outs of personal loans
A personal loan can be a good option to finance that large project or big expense, but it’s important to understand which type of personal loan is best for your situation and how to use it to achieve your financial goals so that you don’t end up being burdened by more debt.
With lower interest rates than many other lending options and flexible repayment terms, if you manage it wisely, a personal loan can help you take advantage of a range of opportunities by giving you the cash you need for it.
Thinking about taking out a personal loan?
In order to make the best financial decision, you should consider both the reason(s) for taking out a loan, as well as your financial situation and how repaying the loan will influence it. Ask yourself:
Why am I taking it out? Determine whether it is the best option for your needs, as personal loans are best suited for larger purchases paid off over a longer term.
How much do I need? This will influence how much you should (realistically) borrow and which loans you’re eligible for. See whether you qualify with an instant free quote.
What will my repayment terms be? Will the monthly repayments fit into your budget, and what is the timeframe for paying back the loan amount? Use our personal loan calculator to estimate what your repayment terms could be and whether you can afford it.
Choosing the personal loan that’s right for me
Once you’ve established your reasons and the affordability of your personal loan, it’s time to select which personal loan option suits your needs:
- A Term Loan provides you with a loan amount that requires fixed monthly repayments. You get a personalised interest rate and can decide over how many months (12–84) you’d like to pay it off.
- A Revolving Loan lets you access money, and once you’ve paid back 15% of your loan amount, you can access that money again without reapplying. You also get a personalised interest rate and can choose between 12 and 72 months to repay your loan and increase your loan limit to access more funds at any time.
- An Overdraft gives you the flexibility to borrow money over and above your credit account limit, giving you access to money whenever you need it and only paying interest on the amount you’ve used. You can also increase your overdraft limit when necessary.
How do I apply for a personal loan?
If you’re 18 or older and qualify for the loan amount, you can easily apply for one of our personal loans on our app, Internet Banking or by dialling *120*2345# on your cellphone.
If you’re a non‒Standard Bank customer, you can start the application process online, see how much you qualify for in minutes and then submit the Call Me Back form. We will contact you to complete the application.
You can also visit your nearest branch with the following:
- Valid South African ID
- Proof of residence no older than 3 months
- 1 Month’s payslip
- 3 Months’ most recent bank statements
*Terms and conditions apply.