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How to Apply for your African Bank Consolidation Loan
African Bank’s consolidation loan offers hassle-free consolidation of up to 5 loans into one, with flexible repayment options and a maximum amount of R350,000. It features a fixed interest rate of 15% to 24.50%, customizable repayment terms up to 72 months, and rewards users with 1.3% back on installments. Category A consumers receive credit life insurance covering uncertain events like death, disability, and retrenchment.
African Bank Consolidation Loan simulation
In case you need R20000 for 12 months you will have to pay a monthly installment of R2036 The amount is calculated by adding an APR of 15%, an insurance fee of 5.4%, a one-time initiation fee of R 1197 which is calculated based on capital, and an admin fee of R 69 per month post 1% VAT increase.
Prerequisites
There are some easy-to-meet requirements to be eligible for the African Bank Consolidation Loan.
- This loan will be offered to any individual who is at least 18 years old;
- You should have a stable income and be required to submit the most recent proof of income. Your latest payslip can be your income proof;
- You need to submit your latest bank statements not older than 3 months. The bank statement must reflect your 3 salary deposits.
About the African Bank
African Bank Limited is one of the leading South African retail banks. This bank has financial products and services available in South Africa. The bank has a headquarters in Midrand, South Africa, and a branch spreads countrywide.
Though the bank was founded in 1975, the story begins in 1964 when the National Federal Chamber of Commerce (NAFCOC) felt the necessity to open a bank for South Africans. NAFCOC got guidance from Sam Mostuenyane to raise funds to start the bank. It was a subsidiary of African Bank Investments Limited. The first branch of this bank was opened in Ga-Rankuwa near Pretoria.
The bank went through financial difficulties in 1995. To recover from the difficulty Natal Building Society and New African Investments Limited acquired African Bank for R100 million. After the acquisition, the bank turned into a lending bank and listed it again on the JSE.
In 1998, Investment Group Limited acquired the license from Natal Building Society and New African Investments Limited. In 1999, Investment Group Limited renamed the bank to African Bank Investments Limited.
A group of six South African banks and the Public Investment Corporation accepted the restructuring proposal placed by the SARB. African Bank Holdings Limited changed its name to Residual Debt Services Limited (RDS) and secured a banking license on April 4, 2014.
African Bank Limited emerged as a new organization in 2016 with all the necessary registrations and licenses. African Bank purchased Grindrod Bank and its parent business Grindrod Financial Holdings in May 2022. After the acquisition, African Bank started providing business banking services.
Besides loans, African banks currently offer banking, investment, credit, and insurance services for personal use. For business, it is currently offering banking solutions, in the future business borrowing and investment will be added. African Bank has online banking facilities.
Step by step to take out the loan
You can apply for this loan from their website by visiting the loan page. You need to click on the apply button to get the online application form. In the application form, you have to go through five steps.
- The first step is to your personal information;
- The second step is your financial details;
- The third step is setting up your one-time PIN,
- In the fourth step, you will get your offer;
- The fifth step is your application confirmation.
If you face difficulty in submitting the application form, you can request a callback. An agent from African Bank will assist you with all your details to complete your credit application. Through the process, you can track your application from their website.
Positives and negatives of the loan
Positive sides
- This loan is easy to manage;
- Enjoy lower repayment;
- Enjoy a fixed monthly installment ;
- Flexible repayment terms;
- Convenient settlement process;
- Take a break from paying installments for a month in your hard times;
- Enabled credit life insurance.
Negative sides
- It comes with a fixed interest rate;
- Have to submit proof of income;
- Compulsorily have to pay the insurance fee.
What other types of loans does the bank offer?
Besides consolidation loans, African Bank has some other market-winning loans to offer.
- Personal Loan: You can borrow up to R350000 at a 15% to 24.50% interest rate to 72 months. This loan also includes other benefits that African banks offer.
- The 12% Loan: This short-term loan comes with a fixed interest rate of only 12%. But the repayment term is short. You have to repay the loan within 9 to 24 months.
- Tech Deal: This loan is designed for those who want a loan to purchase electronic goods such as handsets, tablets, laptops, connectivity, and Power solutions. You can pay for your tech purchases in an installment at an interest rate of 12%. The repayment term is over 24 months.
Fees & fees
The African Bank Consolidation Loan comes with a fixed monthly interest from 15% to 24.50% and a compulsory insurance fee from 5.04% to 5.4%. A one-time initiation fee will be added based on the amount and there is a monthly admin fee of R69.00 post a 1% VAT increase. There will be no VAT.
Customer service
This bank has an automated live response option on its website. You can ask for some specific queries and get answered from their automated response system.
But if you want to know about something else, you can request a callback from an agent by filling out your contact information.
You can visit their corporate office which is located at 59, 16th Road, Halfway House Estate, Midrand, Gauteng 1685, South Africa, or find your nearest branch. For any ethics and fraud case call them at 0800 633 633, fax them at 0864 944 107, or email them at [email protected]. In case of complaints and compliments, call 0861 111 011, and for business banking call them at 0861 123 120. They post recent updates on Facebook, Twitter, Instagram, and Linkedin.
App
To ensure customer experience smooth banking, the African Bank has a mobile app available for Apple Store, Play Store, and Huawei Appgallary. You can visit their website, to find all the versions together.
