African Bank Loan Review – Requirements, Interest Rate & How to Apply

Who is African Bank?

African Bank Limited is a retail bank based in South Africa, offering a variety of financial products and services. As of September 2022, it reported assets worth approximately ZAR 28.695 billion and shareholders’ equity of ZAR 11.080 billion. The bank is under the leadership of Chairperson Thabo Dloti and CEO Kennedy Bungane​.

African Bank Loan Options and Features

African Bank provides a variety of loan products with distinctive features catering to different needs.

Personal Loans: Offer loan amounts ranging from R2,000 to R350,000 with repayment terms between 7 to 72 months. The loans are designed for personal use, offering flexibility depending on the borrower’s financial situation​

​Consolidation Loans: This allows you to combine up to five loans into one, making it easier to manage repayments. These loans can offer up to R350,000 over terms from 12 to 72 months​

The 15% Loan: Provides up to R50,000 with a fixed interest rate of 15%, repayable from 9 to 24 months. This option suits those looking for smaller, short-term loans​

​​Tech Deals: Allow borrowers to add devices like tablets, phones, or laptops to their loans at a fixed interest rate of 12%, repayable over 24 months.​

African Bank Loan Interest Rates and Fees

The APR (Annual Percentage Rate) for loans ranges from 15% to 27.75%. Additionally, insurance rates range between 5.04% to 5.4%.

At African Bank, the interest rates for loans are fixed, meaning they do not change for the duration of your loan period.

For example, consider a scenario where you take a loan of R20,000 for one year. In this case, your monthly repayment amount would come to approximately R2,036.03. This figure includes an initial fee of R1,197 and a recurring monthly administration fee of R69. The total cost for this loan, after 12 months, would end up being around R24,432.41.

African Bank Loan Requirements?

When applying for a loan from African Bank, potential borrowers need to meet specific requirements and provide certain documents as part of the application process.

• A valid South African ID book or Smart ID card.
• Most recent payslips, typically three months’ worth, or if self-employed, bank statements or tax returns can be necessary.
• Three months’ statements reflecting consistent income deposits.
• A utility bill or similar document showing your address, no older than three months​
• Applicants must be at least 18 years old.
• A good credit history is essential. African Bank, like most lenders, checks this to determine your eligibility for a loan.
• For certain loans, you might need to provide assets as security.

How to Apply for an African Bank Loan

You can apply for an African Bank loan online, which is a convenient option allowing you to get an African bank loan without visiting their branch. Alternatively, you can apply over the phone or by visiting your nearest African Bank branch for a more personal interaction​

​​​​Before starting your application, ensure you have all the required documents. These typically include your South African ID, recent payslips, bank statements, and proof of residence​

​​If applying online, visit the African Bank website, fill out the application form, and upload the necessary documents. For phone applications, call the bank’s customer service. In-person applicants can go directly to a branch with their documents​

​​Loan approval times can vary. Once approved, a bank representative will contact you to finalize the offer. Be sure to provide accurate and complete information to expedite this process​

​​Make sure you check the repayment terms before accepting the loan. African Bank typically offers fixed monthly repayments, which means the amount you pay each month won’t change. Repayment terms can range from 9 to 72 months, allowing you to find an option that suits your budget​

African Bank Contact Details

If you’re seeking to get in touch with African Bank regarding their loans, you can dial 0861 111 011 or drop by your closest branch for direct inquiries.

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FAQs

Is it possible to obtain African Bank loans while under debt review? 

African Bank, adhering to traditional lending standards, typically does not provide loans to individuals under debt review, aligning with the National Credit Act’s regulations. To apply for a new loan, you’ll likely need to settle existing debt repayments first.

How long do African bank loans take?

The time required for African Bank to deposit the loan amount into your account post-application can range from several days to a few weeks. Ensuring that you provide all required documentation accurately can expedite this process.

How do I check my African Bank loan balance?

Use the African Bank app for seamless banking on the move. This mobile application allows you to apply for loans and access your statements at your convenience, ensuring you can manage your loan effectively. 

Can I apply for an African bank loan without payslips?

While payslips are generally required as proof of income for a loan application, alternatives such as an employer’s letter may be considered, provided they adequately demonstrate your income. 

Are there African Bank loans for foreign nationals?

South African ID is necessary to apply. If you’re a foreign national, this requirement could limit your eligibility for a loan from the African Bank. 

How does the African Bank loan payment break work?

This option is accessible exclusively to existing African Bank clients, allowing them to temporarily pause repayments on certain qualifying loans. 

Can I get a second loan from African Bank?

Securing an additional loan is possible, particularly in the context of consolidation loans. It’s advisable to directly consult with an African Bank representative for precise guidance and verification.