Are you in need of financial assistance to fund your dreams or manage unexpected expenses? Capitec, a well-known financial institution in South Africa, offers a solution in the form of personal loans. In this comprehensive guide, we’ll take a closer look at Capitec’s personal loans, revealing the benefits, application process, and key details you need to make an informed financial decision.
Capitec has gained a strong reputation in South Africa for its innovative and customer-centric approach to banking. Their personal loans are no exception, offering a range of advantages:
1. Competitive Interest Rates: Capitec strives to make personal loans accessible to a broad audience, offering competitive interest rates that don’t break the bank.
2. Flexible Repayment Terms: Capitec understands that everyone’s financial needs are unique. Therefore, their personal loans come with flexible repayment terms, allowing you to choose a duration that suits your budget.
3. Easy Online Application: Convenience is key with Capitec. You can easily apply for a personal loan online through their user-friendly website, saving you time and effort.
4. No Collateral Required: Capitec’s personal loans are unsecured, meaning you don’t need to put up collateral to secure your loan. This makes the application process smoother and less daunting.
5. Quick Approval: Capitec is known for its efficient approval process, and you can expect a speedy response to your loan application.
6. Accessible Loan Amounts: Depending on your financial situation and creditworthiness, Capitec offers a range of loan amounts, catering to various financial needs, from small expenses to more significant financial goals.
Why Choose Capitec Personal Loan?
Whether you need money for your child’s education, home improvement, vehicle purchase, or travel expenses, Capitec Personal Loans can give you the needed cash boost to make any of these goals come true.
You can use the loan to start a small business, renovate a house, or pay for school tuition. You can even use Capitec Personal Loan to consolidate all your debts for a more convenient monthly repayment.
Here are the important points to know about Capitec Personal Loan:
- Loanable Amount
With Capitec Personal Loan, you can borrow as much as R250 000 and spend it however you want to.
- Repayment Period
The repayment period ranges from one month up to 84 months.
- Interest Rates
Interest rates start at 12.9%. The service fee, initiation fee, interest, and insurance premium will be included in the calculation of your monthly repayments.
Capitec Personal Loan has fixed monthly repayment terms, so you won’t have to deal with increasing prime rates. Capitec will give you a personalized rate based on your financial capability and credit history.
Knowing how much you need to allocate for loan repayments makes budgeting easier and more manageable.
- Insurance
You can’t take a Capitec Personal Loan without applying for credit insurance. Although you might think this is just an added cost, insurance is for your protection in case unexpected circumstances happen.
With Capitec Personal Loan, credit insurance is required, especially if the loan terms last for more than 7 months. The insurance covers death, retrenchment, unemployment, and temporary or permanent disability. In any of these instances, doing monthly repayments will be very difficult, which is why the credit insurance will cover the financial obligations for a certain period.
The premium for credit life insurance is computed for every R1 000 of your outstanding balance. You can use this as an added motivation to pay off the loan as quickly as possible; the lower your outstanding balance is, the lesser you’ll have to pay for the credit insurance premium.
To make a claim, Capitec must be notified within 12 months that any of the covered events occur. Capitec will assess the validity of the claim and will contact you or your dependents regarding its status.
Many South Africans face over-indebtedness due to undisciplined financial practices. Capitec thoroughly checks each application to ensure you won’t borrow more than you can handle. To prevent over-indebtedness, Capitec will assess your loan affordability using the following factors:
1) Household income
Your payslip will be the basis for computing your household income. Usually, your income for the past 3 to 6 months will be used for calculating affordability. If you’re a freelancer or earn money through commissions, the average income over a certain period will be computed.
2) Employment stability
The stability of your income stream is vital in getting approved for a Capitec Personal Loan. Having money regularly deposited into the same account you provide during loan application gives lenders proof that you can regularly pay your monthly debt obligations.
The loan terms and the interest rate may also depend on whether you’re a permanent or contractual employee. If you’re a permanent employee, you may be given more favourable terms because you have lower risks of missing out on monthly repayments.
3) Credit risk
Before Capitec grants your personal loan application, they’ll consider your credit history first. Your actions and behaviour in handling past debts have a major effect on how interest rates will be computed for the personal loan you’re currently applying for.
Since Capitec already knows your current credit status, they’ll see if you have existing debts. This will also be factored into the personal loan computation to determine whether you can pay all financial obligations without fail.
Capitec Personal Loan Calculator
Requirements and Eligibility to Apply for Capitec Personal Loan
To apply for Capitec Personal Loan, you must satisfy the following conditions first:
– You must be a South African citizen who is at least 18 years old.
– Your name on the documents and identification to be submitted must match.
– You’re earning at least R3 000 per month.
Here are the documents and other requirements you need to submit upon application:
– Your latest payslips, preferably the last 3 months reflecting your monthly salary.
– Latest bank statements showing the last 3 consecutive salary deposits made into the account.
Loan Application Process
To apply for Capitec Personal Loan, you can visit the nearest Capitec branch in your area. However, with the current situation, it’s more convenient and safer to apply through online channels. You can do this by visiting Capitec’s official website or through their free mobile app.
If you need a rough estimate on how much you can apply for a Capitec Personal Loan, you can try the free credit calculator estimate service from Capitec. All you need to do is supply your personal information and verify your identity to receive a quick assessment.
Loans offered by other banks often take days to weeks before you get the results, even if the application was made online. With Capitec Personal Loan, you can get approval for the loan within minutes. The borrowed amount will also be directly deposited into your account immediately, so you can use it right away.
Capitec Loan Calculator
You can the Capitec online personal loan calculator to see what the expected monthly instalment amounts will be for the loan amount you are looking to borrow. This will also show you the monthly service fee and account charges that you can expect.
Tips When Applying for a Capitec Personal Loan
Here are the top tips to remember when applying for a loan:
- Work out your budget
Before you apply for a Capitec Personal Loan, look at your current income and expenses.
Check first how much money goes into the household by getting your salary slip. Take out non-recurring income like bonuses, tax deductions, and overtime variables. After this, make a list of your monthly expenses including utilities, food, and debt obligations.
The amount you get from subtracting expenses from your income will show how much you can spend on a new loan. This will give you a good idea of whether you’ll be able to commit to the monthly repayments without sacrificing living comfort.
- Check your credit profile
Before you submit your application, make sure you’ve checked your credit rating first. Your credit rating will define whether you’ll get good terms or prepare for high interest rates.
You can request a free credit report from the major credit card bureaus in SA once a year. Don’t forget to take advantage of this service to regularly check your credit rating.
- File only for personal needs
Avoid applying for a loan on behalf of other people, even if they’re your friends or family. If they fail to repay the loan, it’s your credit history that will take the hit and this can affect your financial options in the future.
- Shop around for the best offer
Many SA lenders offer free loan assessment that will give you a rough estimate of the rates and fees of their products. Don’t be shy to shop around and have a pre-assessment to determine which of them can give you the most advantageous personal loan offer.
When looking for a personal loan provider, check first whether they’re reputable and registered. Non-compliant and shady lenders will show you loan offers that are often too good to be true.
Double-check for hidden fees so you won’t get surprised with the computation of your monthly repayments. A trustworthy lender like Capitec promotes transparency by providing all the details about your loan.
Contact Details
If you have questions or concerns regarding Capitec Personal Loan, you can contact them through the following channels:
- Email: [email protected]
- Telephone: 0860 66 77 89
You can also send Capitec your queries directly from their website.
Final Thoughts
Capitec Personal Loan provides you with the best option to get extra cash based on your needs and financial profile. The low-interest rates, fixed repayment terms, and longer repayment periods make Capitec Personal Loan one of the best options for South Africans looking for an affordable and flexible debt instrument.