Personal loan requirements: What you need to know
From financing home renovations to big-ticket items, trips, emergency expenses and more, a personal loan could be the answer. However, it’s important to understand what’s involved in a personal loan application and what you’re signing up for. Here’s what you should know before applying for one.
A personal loan can be a powerful financial tool that provides you with the credit needed to pay for bigger expenses that you might be unable to afford upfront. It’s also useful in consolidating your debt and making it more manageable by paying a monthly single instalment instead of different monthly instalments.
Whatever your reason, before taking out a personal loan, make sure it’s the right lending option for your specific needs, you can afford it and you know how it works. That way, you’ll be able to make better decisions and save yourself money in the long run.
Understanding how a personal loan application works
When you borrow money in the form of a personal loan, you pay it back in monthly instalments over a set time with added interest. How much interest you’re paying and how much time you have to pay back the loan differ depending on the amount you’re borrowing and in what timeframe you’re comfortable repaying it.
Every personal loan application is assessed on an individual basis and approved or denied accordingly, with the loan amount and repayment terms based on the following:
- Your credit score: Evaluating your ‘creditworthiness’ to see how much debt you have and how you’ve handled debt and repayments in the past.
- Your income: How much you earn will determine how much credit you can take on. Do you make enough money to repay your loan and still have enough left for other expenses?
- Requirements set out by the National Credit Act: Our interest rates are personalised up to a maximum of 24.5%. The good news is that a good credit score could get you a better interest rate.
Agreeing to the terms
Remember to consider all your borrowing options and whether the loan type you’re applying for suits your needs and financial capabilities. Also note that the amount of interest and the repayment time you’re agreeing to will impact the overall cost of the loan. Even though a lower monthly instalment might initially seem cheaper, paying it over a longer period could add up to cost you more in the end.
Use our personal loan calculators to see how much you qualify for, estimate your monthly repayments or see how changes in term, interest rates, and missed and early payments affect your loan.
What do you need to apply for a personal loan?
You need to be 18 years or older and qualify for the loan amount. Simply sign in to your Standard Bank App or Internet Banking, choose the type of personal loan suitable to your needs and follow the easy steps to apply for it. If approved, the money will be deposited into the designated account.
If you’re a non‒Standard Bank customer, you can start the application process online, see how much you qualify for 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 documentation:
- 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.