Capitec Loans


Capitec Loans

Capitec is a commercially registered South African bank that recently joined some of the country’s big financial services providers. The bank has so far done well in providing South Africans with different types of loans.

Most people have applied for home loans i.e. a loan given to clients by a home loan provider, where the home or property they are purchasing is used as a form of security in case one cannot make the loan repayments.

If a client secures a bond, the home loan provider (in this case Capitec) will keep your property as a title deed until the home loan is fully paid. Until the client pays, the home remains their property. Meanwhile, it is of paramount importance to make a sound decision before you apply for a loan.

Below are some important notes to take note of before you apply for a home loan:

  • Have a good idea of what you like and don’t like, where you’d like to buy and the value of property in that area
  • Compare home loan rates and home loan providers for the best deal
  • Keep your family’s needs in mind and make sure the home you buy works for your lifestyle

The question one would love to ask themselves is how do home loans work?

Some of the two chief aspects in any loan repayment are how much do you borrow, and the repayment term. Mostly clients are obliged to pay back the home loan, plus interest, over a set period of time, most usually between 20 to 30 years.

Information provided on the Capitec website shows that the interest on client’s bond is based on the current prime interest rate determined by the South African Reserve Bank (SARB). A client’s payments will vary according to how the interest rate increases or decreases. In the first few years, most of the client’s loan repayments will go towards paying off the interest. Over time more of a client’s repayments will go toward paying off the actual loan amount.

Meanwhile, loan application has been made easy at Capitec. If you want to apply for a loan, kindly omplete a credit application online and the bank management will be in touch to discuss it with you.


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