Nedbank Personal Loan

The flexibility of personal loans makes them a great solution when considering home improvements or paying for big-ticket items.

And as one of South Africa’s leading credit providers, Nedbank offers a wide variety of financing solutions that can be tailored to your budget.

Nedbank - the credit provider of choice

• The security of well-established lending criteria and strictly regulated processes and fees
• They have the financial backing to offer you higher loan amounts for longer terms
• You gain access to the lowest interest rates on the market
• They offer incentive packages that allow you to earn money back on loans
• Banks offer a variety of beneficial products and services in addition to loans

What Nedbank brings to the table

Since opening their doors on the 1st of March 1888, they’ve spent years developing and perfecting products that make saving, spending, and investing more accessible.

As one of South Africa’s favourite FSPs, they pride themselves on offering competitive pricing and professional services, including everything from expert financial advice to investment opportunities.

Alongside their personal banking and loans, they also offer financial solutions for your business. They provide a range of affordable insurance products, including Credit Life cover and funeral policies as an additional bonus.

Get R200 off your loans back every month

If you've ever wondered what having a loyalty card for your bank would be like, this offer is Nedbank’s answer. To take advantage of it, you can sign up for a Savvy Plus or Bundle account once you’ve applied for a personal or car loan.

You’ll have 60 days to activate the promotion and set up the debit order from this account once your loan has been approved.

Ensure you get cash back by making this the account your paycheck is deposited into or by transferring a minimum of R5,000 into it on a monthly basis. You’ll need to keep the account active and use their banking app regularly to ensure you never lose out.

While the personal loan category includes everything from payday to vehicle finance, the term most often refers to long-term loans in advertising.

One of the more notable advantages of this product is that you have more options regarding the amounts and duration of your loan.

Get loan terms of up to 72 months

You can borrow between R2,000 and R300,000 for up to 6 years. Each application is reviewed on a case-by-case basis to make sure you get the most affordable repayment options. Choosing the amount and term you can quickly repay will increase your chances of loan approval.

Your credit score influences the interest you’ll pay. This means you’re more likely to be offered lower interest rates if you have a high score.

Checking up on your credit profile regularly is a great way to manage your debt more effectively and ensure you get the best rates on any loan agreement.

A breakdown of the costs involved

Interest on personal loans can be between 18% and 28% per year, but this isn’t the only fee you’ll need to consider.

Nedbank charges a percentage of the loan amount as an initiation fee and a fixed monthly service fee of R69. While the former is a once-off cost distributed over your loan term, the latter is charged each month until the end of the agreement.

The final cost is a mandatory credit life insurance premium based on your chosen loan amount. This pays off outstanding loan repayments in case of death or permanent disability. It also covers up to 12 months of instalments if you’re retrenched or unable to work due to critical illness.

Using the APR to compare loans

Comparing the terms and fees on loan offers from a variety of credit providers allows you to make sure you’re getting the most bang for your buck. However, comparing each charge individually can be time-consuming.

This is where the Annual Percentage Rate comes in. It combines all related fees calculated over 12 months and shown as a percentage. By comparing the APR offered by different lenders, you can choose a loan based on the costs and benefits of each option.