Standard Bank Personal Loans Reviewed

Standard Bank is one of the most respected names in South Africa. The Standard Bank financial group was formed way back in 1862 and has since grown to become a very recognised name in the world. It operates in 38 countries all over the world, of which 17 are in Africa.

Types of Personal Loans Offered

Standard Bank offers two different types of personal loans. One is the Revolving Credit Plan while the other is the Way to Pay personal loan. Here are the salient features of each type of personal loan that Standard Bank offers.

1. The Revolving Credit Plan:

This type of personal loan is a form of line of credit that has a fixed installment but does not have any fixed repayment period. The prime benefit of this type of a personal loan is that if the borrower pays back 15 percent of the agreed limit, he has the option of borrowing again on the same loan.

The loan can be acquired for up to three and half times the gross monthly income with the limit being set on the basis of the individual’s size of income and his credit risk. Even so, the minimum amount of money that can be borrowed is to the tune of R3 500 and the maximum limit set is R100 000.

The interest rate that a borrower is assigned is determined on the basis of his credit risk. However, it is still linked to the prime rate which can result in an increase or decrease.

The fixed repayment amount is assessed on the basis of the total size of the personal loan. It is fixed at 1/45 of the total borrowed amount. Moreover, the installment remains fixed even if the interest rates change. However, a borrower would have the option to repay more than the minimum fixed installment and later withdraw this extra amount if required.
2. The Way To Pay Personal Loan:

This type of personal loan is usually recommended for people who are either first time borrowers or who need only a small amount of cash infusion. The reason for this is that this type of personal loan can be repaid in a relatively short space of time.

A borrower can get this loan for up to two and a half times his gross monthly income. The cap put on the borrowing is derived on the basis of the individual’s monthly income and his credit risk. The minimum sum that a person can borrow under the Way To Pay instrument is R3 500 while the maximum is R30 000.

The interest rate attached to the loan is directly related to the individual’s credit risk profile. Moreover, even the repayment period is determined on the basis of the credit risk of the borrower. The repayment installment can be at either 1/20 or 1/30 of the total borrowed amount.

Benefits of Going for Standard Bank Personal Loans

Choosing Standard Bank personal loans can result in many benefits for the borrower. These types of personal loans are designed to give individuals easy access to cash when the need arises without worrying about difficult to handle repayment installments. Moreover, these personal loans afford a lot of flexibility to the borrower in a wide variety of ways.

Standard Bank personal loans can be used to acquire large amounts of money or small depending upon the explicit preferences and needs of a borrower. Furthermore, the reputation and professionalism of the bank itself allows for security and peace of mind.