It’s better to get a personal loan once you have a proper understanding of the pros and cons that come with it. This can save you money and help you make better decisions.

How do finance loans work?

When you borrow money, you have to pay the amount you borrowed back, plus interest and fees. The loan may or may not have a term, which is the length of time over which you repay it. This repayment term varies for each type of loan and determines how much you will be repaying per month. Shorter terms generally mean that you will be required to make larger payments.

How you would use finance loans:

  • Business loans for financing your start-up business
  • Paying tertiary fees or school fees
  • Paying for unexpected expenses
  • Settling a medical loan
  • Paying for a car deposit

Various finance loans:

Bruma Finance

This lender specialises in providing a little extra finance. Loan amounts range from R1000 to R15 000, with a repayment period of 6 to 18 months. Loan applicants can expect a same day response turnaround time. There is also a simple online application offered, with minimal paperwork.

Old Mutual

This institution has the My Personal Loan on offer, which gives you the freedom to use the money for home renovations, buying a new car, or even paying for unforeseen medical expenses. The maximum loan amount is R100 000.

The financial institution gives borrowers a minimum period of 3 months and a maximum period of 48 months to repay the loan, along with the benefit of a fixed interest rate.

The interest charged is dependent on your individual credit score. To apply for this loan you will need to be above the age of 18 years, with a valid South African ID, with permanent employment