Personal Loans from Capitec Bank
Capitec Bank is one of South Africa’s largest retail banks serving over 15 million clients. While Capitec does not offer specific payday loan products, they do have personal loans available with online applications and quick approval.
This guide provides an overview of Capitec personal loans, including loan amounts, interest rates, repayment terms, eligibility criteria, required documents, application process, insurance needs and loan alternatives.
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Personal Loans Offered by Capitec
Capitec Bank offers unsecured personal loans from R1,000 up to R230,000 to individuals who meet their affordability criteria.
Key features:
- Fixed interest rates from 13.75% p.a.
- Loan terms from 6 to 84 months
- Pre-approved limits up to R500,000
- Credit decision within minutes
- Funds available immediately upon approval
Capitec personal loans allow access to funds for any legal purpose such as:
- Debt consolidation
- Unexpected expenses
- Home improvements
- Vehicle purchases
- Special occasions
- Medical expenses
- Education costs
Loans are available to Capitec clients as well as non-clients who meet the eligibility criteria.
Personal Loan Amounts
Minimum Loan Amount: R1,000
Maximum Loan Amount: R230,000
Pre-approved Limit: Up to R500,000
The maximum loan amount you qualify for will depend on your affordability, income, existing debts and credit history. Capitec offers pre-approved loan limits up to R500,000 for existing clients with good credit records.
Analyze your budget and needs to determine the ideal loan amount. Avoid borrowing more than you can comfortably afford to repay.
Interest Rates
Capitec offers fixed interest rates starting from 13.75% p.a. up to 17.75% p.a. for personal loans.
The interest rate you qualify for will depend on:
- Your credit score and history
- Income stability
- Existing debts
- Loan amount and term
The longer the repayment term, the higher the interest rate charged. Rates are competitive compared to other major banks.
Loan Repayment Terms
Capitec offers personal loans with flexible repayment terms from 6 months up to 84 months (7 years).
Short 12-36 month terms are more common. The maximum repayment period allowed depends on your age and the loan amount.
You’ll make fixed monthly repayments comprising of principal and interest charges until the loan is settled. Auto-deductions via debit order make repayments convenient.
Documentation Required
Documents required for Capitec personal loans:
- South African ID book/card
- Latest salary slip (if salary not paid into Capitec)
- Last 3 months’ bank statements showing salary deposits
- Latest municipal rates account for not older than 3 months
- Other income proof if self-employed/informal trader
Payslips and bank statements help assess affordability. Having your salary paid into your Capitec account helps with pre-approval.
Eligibility and Requirements
To qualify for a Capitec personal loan, applicants must:
- Be 18+ years old
- Have a good credit profile
- Earn R3,500+ net monthly income
- Be a permanent employee
- Have an existing Capitec account
Meeting the minimum eligibility makes approval easier. Having a good credit standing improves your chances further.
How to Apply for a Personal Loan
Applying for a Capitec personal loan is simple:
Step 1: Assess your finances and determine the loan amount you need.
Step 2: Gather required documents like your ID, payslips, and bank statements.
Step 3: Submit your loan application online via internet banking or the Capitec app.
Step 4: Accept the loan agreement if you’re satisfied with the quoted terms.
Step 5: The approved loan amount will reflect immediately in your Capitec account.
The entire application and approval process is quick, convenient and paperless.
Credit Insurance Requirements
Capitec requires credit insurance covering death, disability, retrenchment and unemployment to be taken with all personal loans.
The once-off insurance premium depends on the loan amount and repayment period:
- Up to 60 months: 2.2% of loan amount
- 61-84 months: 3.3% of loan amount
Credit insurance helps protect loan repayments. Premiums can be paid upfront or added to your loan amount.
Alternatives to Capitec Personal Loans
Other lending alternatives besides Capitec personal loans include:
1. Payday Loans
Small short term loans from R500-R8000 but with higher rates.
2. Credit Cards
Revolving credit facilities with more flexibility but costlier over the long run.
3. Retail Store Cards
In-store credit from retailers offering special promotions or discounts.
4. Peer-to-Peer Lending
Borrowing from investors via online platforms like RainFin and Lulalend.
5. Employer/Company Loans
Some employers offer low rate loans as an employee benefit.
Conclusion
In summary, Capitec Bank offers online personal loans up to R500,000 with competitive interest rates and flexible 6-84 month terms. While not a substitute for payday loans, Capitec personal loans offer an accessible financing solution for your various needs following affordable eligibility criteria. Conduct due diligence, compare options and borrow wisely.
FAQs
Q: Does Capitec offer blacklisted loans?
A: No, Capitec does not offer loans if you are currently blacklisted with credit bureaus. You need an active credit profile.
Q: Can I get a loan with bad credit from Capitec?
A: Having bad credit below 600 makes approval challenging. Specialized bad credit lenders may offer loans more easily despite lower scores.
Q: How fast can I get a Capitec loan?
A: Online approved Capitec loans are available immediately in your account with no waiting period for disbursal.
Q: What is the quickest way to apply for a Capitec loan?
A: The fastest way is applying online via Capitec internet banking or their mobile app. The entire application process takes less than 10 minutes.
Q: Does Capitec do no credit check loans?
A: No, Capitec conducts credit checks as part of its affordability assessment before approving personal loans.
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