Standard Bank offers three loan options to its customers and the application can be completed entirely online. Each credit line offered by the bank seeks to cater to a specific audience. Check out the available options!

Standard Bank is a bank headquartered in South Africa and currently operates in more than 20 countries across Africa. Like other financial institutions, the bank offers a range of financial services, such as loans, bank accounts, credit cards, investments and loans. The bank also stands out for its work in economic and financial development in African countries.

In terms of operations, Standard Bank has various customer service channels, including physical branches, mobile apps, online banking services and more. To access these services, one must become a customer of the bank. It is worth noting that the bank has specific procedures for each of the services offered.

For those considering taking out a loan, Standard Bank offers some good options. Learn more below!

Types of loans offered by Standard Bank

Standard Bank offers personal loans that can reach up to R300,000. In total, three types of personal loans are offered to bank customers, in addition to business credits. The process of requesting a credit line can be done entirely online. Thus, through the internet, it is possible to access the loan and repayment terms granted by the financial institution.

Through the bank’s platform, customers can explore new personalized interest rates for their loan application. Standard Bank also allows the user to use the UCount Rewards account to make loan payments, and through this payment method, it is still possible to redeem reward points. The terms for the money to be returned to the bank are quite flexible, ranging from 12 to 72 months.

The three types of personal loans offered by the bank are as follows:

Term Loan

This personal loan offers a fixed monthly repayment amount, and a long repayment term can be chosen. To apply for this credit line, a minimum monthly income of R3,000 is required. The maximum amount that can be borrowed is R300,000. Those interested in the loan can repay the money to the bank between 12 and 72 months.

The loan can be requested via Internet Banking or even through the bank’s mobile app. Once approved, the credit is immediately deposited into your account. If you decide to pay off the loan before the scheduled time, no termination fees will be applied. In addition, those who take out the credit line may receive more rewards if they are UCount Rewards members.

The bank emphasizes that the term loan can be secured against cost reduction, serious illness, death or disability. The term loan has a monthly service fee cost of R69 and a single initiation fee of R1,207.50 (VAT included), and the interest rate is personalized.

Revolving Loan

The revolving loan provides money to the client whenever they need it, without having to request the credit again. To do so, the client only needs to repay 15% of their loan. This credit line requires a minimum monthly income of R8,000, and the maximum amount to be contracted is R300,000. The bank offers between 12 to 60 months for the amount to be repaid.

The revolving loan can also be requested via internet banking or through the bank’s mobile app. After loan approval, the funds will be deposited into the bank account provided by the applicant. If you wish to settle the loan at any time, no fines will be charged. It is still possible to increase or decrease the value of your revolving loan, depending on your needs. The bank also offers loan insurance in case of disability or death.

The repayment amount remains unchanged, allowing the customer to make a good budget. Like the credit line above, the revolving loan also has a monthly service fee of R69 and a single initiation fee of R1,207.50, with VAT included

Overdraft

This loan modality is an overdraft that offers instant access to additional funds. The minimum monthly income to access this loan modality is R8,000, and the maximum amount that can be contracted is R250,000. In this case, the time period for repaying the loan is ongoing. Thus, no minimum monthly payments are required because the resource is supplemented when the customer’s income is deposited into their account

Interest is only charged on the amount used during the month, and the monthly service fee is R69. Monthly service fees are only applied in case of overdrafts above R500, while the one-time initiation fee is up to R1,207.50.

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Essential precautions when applying for a loan

Most of the time, people turn to personal loans due to two situations: to fulfill dreams or to solve problems. In the first case, dreams tend to be long-term, such as buying property or traveling. The major problem usually lies in the loan that is taken out to solve problems, such as paying off a debt.

This is because taking out money without planning can end up creating another problem. Therefore, when applying for a loan, it is possible to ask yourself about the amount you have available to commit to the installments, and it is also necessary to know what the interest rates charged by banks are.

It is also important to pay attention to all conditions related to the loan, such as what the interest rates are, if it is possible to anticipate the installments and how to do so, if you will be able to manage the installments, and what happens if the installments are delayed. Having knowledge of this information is essential in order to not lose control of payments in the future.

Many companies tend to offer personal loans that end up making the customer’s life difficult when trying to anticipate the installments so that more interest is paid in the end. Therefore, it is important to do thorough research on financial institutions and the different categories of loans that are offered. Loans without collateral, for example, usually have higher interest rates.

Another important factor to be checked when requesting a loan is the additional costs. Most banks offer extra products when providing a loan, such as registration fee, credit opening fee, and insurance. These costs are usually charged in the total amount that needs to be paid at the end of the loan, and many times customers are not aware of these facts because the information is hidden between the lines.

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