The African Bank debt consolidation loan is a credit management product that allows you to settle other debt and take the remaining capital out all in one loan. It essentially simplifies the administration of multiple lenders and multiple loans.
It’s essentially a process that involves using new debt to pay off existing debt owed to creditors and can help you get rid of debt faster.
When applying for debt consolidation, you are still required to meet the necessary credit risk criteria which help to ensure that you are able to afford to repay the loan.
It often results in savings as a reduced instalment frees up cash flow. With this offer from African Bank, there is an option to consolidate up to five accounts from a wide range of credit providers.
Repayment terms range between 18 and 60 months.
How the African Bank debt consolidation loan online application works:
To apply, you need to provide a valid South African ID, as well as your latest original payslip, 1 months’ bank statement and proof of residence.
Apply online by visiting www.africanbank.co.za
You also need to be classified as over-indebted to qualify for debt consolidation. This means that most of your disposable income goes towards settling your debt on a monthly basis and you are struggling to keep up with repayments.
Once you have submitted your African Bank debt consolidation loan online application, the bank will decide on whether to approve you or not. If you are approved, the loan will be used to settle your debts.
Some benefits of debt consolidation loans:
- You get to pay only one instalment instead of multiple payments
- The process can assist the applicant to budget better
- The interest rate may be lower
- The process allows you to save on multiple fees, service charges and debit order charges. You won’t have to remember to pay multiple creditors but will only have to keep track of one payment.
- The process does not have a negative impact on your credit rating.
