The South African financial sector is growing and evolving at a rapid rate. As consumers become increasingly financially savvy, financial institutions have to become more innovative and progressive in terms of the types of financial services they offer.

Different types of SA Loans available:

Personal Loans

These loans can either be secured or unsecured. Secured loans may be easier to qualify for because assets are put up as collateral and interest rates are lower. Unsecured loans are more popular because not many people have assets to put up as collateral. Interest rates are also generally higher with these types of loans.

There are no restrictions on how individuals can use personal loans.

Repayment terms vary and may be fixed.

How much you can borrow depends on your affordability and individual creditworthiness.

Student Loans

Student loans are useful for helping individuals who are furthering their education meet their financial obligations to the tertiary institution.

They may be offered by banking institutions or other specialist education loan providers.

Students applying for these types of loans may usually qualify with the help of a co-signer.

Vehicle Loans

Getting a loan for a vehicle purchase is a simple way of becoming mobile, when you don’t have a cash lump sum to pay. There are different kinds of vehicle loans you can get, such as from car dealerships, banks, online companies and private sources.

Vehicle finance loans allow you to defer payment, giving you the chance to pay off the loan amount slowly.

Business Loans

While there are numerous ways to raise the necessary capital for running a business, the most common form of business finance is the business loan.

Before approaching your bank for a business loan, ensure that you know what type of finance your business needs and what you require to apply.

To qualify for different types of SA Loans, you generally need to:

  • Be at least 18 years or older
  • Be a South African resident
  • Have a good credit record
  • Provide proof of income
  • Earn above a certain threshold per month