The ABSA group was previously known as the Amalgamated Banks of South Africa. ABSA has the distinction of being the largest bank in South Africa in terms of its consumer base. It is because of this reason that ABSA is considered to be one of the big four banks of South Africa.
While the primary market that ABSA operates in is South Africa, it has presence in other countries such as Tanzania, Mozambique, Nigeria, and Namibia. Here is a review of personal loans offered by ABSA in South Africa.
Types of Personal Loans Offered
ABSA does not offer pre defined personal loans and, instead, prefers to treat each potential borrower individually. Effectively, ABSA personal loans are extremely flexible which makes them suitable for a wide variety of needs. While terms will vary for each borrower, there are certain common aspects of these loans.
1. The floor for ABSA personal loans is R5 000 while the ceiling or cap is R50 000. As is evident, this allows the ABSA personal loans to be appropriate for a wide range of potential borrowers and uses.
2. When an individual goes for an ABSA personal loan, he would have to get a separate loan account with the bank.
3. The interest rate that the bank offers to a potential borrower would depend entirely on the size of the loan required. Therefore, there is no set interest rate with ABSA personal loans.
4. While the interest rate applicable on the personal loan will be based on the total borrowed amount, the repayment instalments would be determined by the interest rate itself.
5. The repayment schedule of ABSA personal loans can be anything from 12 months to a period of five years.
ABSA also offers an even more flexible and adaptable type of personal loan which it calls the flexi – loan. This personal loan has a lower limit than the standard personal loan offered by the bank i.e. R2 000.
Furthermore, the terms and conditions applicable to this loan are completely negotiable and the repayment schedule can be of anything between 12 months and 30 months/
Benefits of Going for ABSA Personal Loans
There are many benefits of choosing either the standard personal loan or the flexi – loan from ABSA. The foremost benefit, as you may have already surmised, is that these personal loans are easily one of the most flexible and adaptable products available in the market.
Moreover, the focus on separating the personal loan account from the generic savings account can be a very good move as well. The reason for this is that having a separate loan account means that the borrower would receive separate statements pertaining to the loan alone.
There is also the option of Credit Life which would give you protection in situations involving death, dread disease, disability, and even retrenchment.
Prerequisites and Requirements
Like every other personal loan option in the market, ABSA personal loans have their own prerequisites and requirements. Consider the following:
1. A commendable credit history and record
2. An existing bank account
3. Stable regular income
4. Minimum income of R3 500.
ABSA personal loans are categorically designed to benefit the borrowers because of the core business of the company i.e. directly catering to consumers in the country. This combined with the fact that the bank is one of the most stable in the country makes ABSA personal loans fairly attractive.