P
Loans
Personal Loan
An unsecured loan (no collateral required) that a bank or lender gives you based on your creditworthiness. In SA, personal loans usually range from R1,000 to R300,000, with terms of 12 to 72 months. Interest rates are higher than home loans because there's nothing backing the loan.
Usage Examples
"Bongani took a R50,000 personal loan from Capitec at 21% to renovate his Soweto house. No collateral needed, just his credit score (720) and proof of employment. The approval was quick — 48 hours."
"Thandi used a personal loan from Nedbank to settle her store card debts. She borrowed R25,000, got approved based on her salary from her Durban job and clean credit history. Sorted her stress in one move."
"Andile tried to get a personal loan from FNB with a credit score of 520. Rejected. His score was too low. He went to Wonga for a higher-interest short-term personal loan instead. Same concept, much hectic rates."