Woolworths is a company that is synonymous with departmental stores in South Africa. It enjoys a rich heritage as its first store was opened way back in 1931. The company enjoys the distinction of being first in South Africa in a wide variety of ways.
This is epitomised by the fact that Woolworths was using computerised technology as early as the 1970s. While the core business of the company is departmental stores, it offers personal loans to its consumers as well.
Types of Personal Loans Offered
Woolworths offers two different types of personal loans to its consumers in the form of a Revolving Personal Loan and a Fixed Term Personal Loan. The amount that each loan allows the borrower to borrow depends entirely on the individual’s preferences and ability to pay back the loan on the basis of his personal finances.
The interest rates on these personal loans are charged on an individual basis. Furthermore, while the interest rates are determined on the basis of the total borrowed amount, they are still under the purview of the prime rates in the country. This means that the borrower’s interest rates will fluctuate on the basis of the prime rate.
The following are some features of these two types of personal loans.
1. Revolving Personal Loan:
The Revolving Personal Loan allows the borrower to be able to get access to money that has already been paid back. The repayment period for these types of personal loans can range from 12 months to 60 months.
This loan gives the borrower access to a minimum of R1 000 which can be increased in multiples of R500 until the total borrowed amount is reached. Furthermore, if a borrower chooses to pay back the loan before time, Woolworths does not charge any penalties.
Furthermore, while the company does charge minimal monthly fees, there are no initiation fees for the borrower to deal with.
2. Fixed Term Personal Loan:
These types of personal loans from Woolworths can be acquired for the same repayment periods as described with the previous type of personal loan i.e. a minimum of 12 months and a maximum of 60 months.
As the name suggests, these personal loans carry fixed repayment amounts. The rest of the terms of this loan is similar to Revolving Personal Loans.
Benefits of Opting for Woolworths Personal Loans
There are separate benefits to applying for both types of Woolworths personal loans. The Revolving Personal loan is beneficial because it allows the borrower access to the borrowed amount until the loan has been closed even if the money has been paid back.
On the other hand, Fixed Term personal loans are useful for people because fixed repayment amounts makes it easier for them to create and conform to their own budgetary limitations.
Furthermore, Woolworths personal loans come with an automated repayment system wherein money is withdrawn from the borrower’s account automatically. One more benefit of these loans is that there is no penalty for paying back the loan before the stipulated period.
Prerequisites and Requirements
There are six prerequisites and requirements that need to be met for an individual to get Woolworths personal loans, apart from credit clearances. These are:
1. Minimum age of 18 years
2. Permanent employment
3. Minimum steady income of R2 000
4. Possession of a working bank account
5. A decent credit history
6. A valid South African ID document
Woolworths personal loans are extremely easy to get and full of various consumer based features, which makes them ideal for the majority of South African citizens.