The amendments to the National Credit Act have had a number of effects on the South African financial market. Consumers and lending institutions have mostly been affected positively by the changes. For example, banking institutions have been stricter when approving home loans, so many individuals have turned to the next best option for obtaining finance- personal loans. Consumers are also better protected by legislation introduced. First National Bank has a credit facility giving clients various flexible solutions to their financial needs. The bank has particular criteria that must be met before applications are considered for its FNB Loan service.
Prospective clients need to be at least 18 years old but not older than 63 years of age to apply. They must have a bank account that has been active for at least 3 months, and should have more than R750 remaining in their account after settling all of their monthly expenses. A valid South African I.D. or passport needs to be produced. This needs to be accompanied by one months’ payslip if you are paid monthly or two for fortnightly or four for weekly paid. Non-FNB customers need to present 3 months’ bank statements and proof of employment for 6 months.
FNB Loans offer clients the opportunity to borrow R1000 to R150 000 maximum, with flexible repayment periods of 1 to 60 months. Interest is charged at 31% per annum and there e is a once-off initiation fee and a monthly administration fee. The loan amount may be useful for helping to pay for education or to help consolidate debts. The latter is a helpful way of saving on administration fees, interest and debit order charges.
An added benefit of FNB loans is the ‘Take-a-break facility’ which affords customers a chance to get a break from paying their loan instalment every January. The FNB Customer Protection plan must be taken, or an alternative but equal one presented.
With these flexible terms, FNB Loans are without a doubt a practical and immediate solution to finance needs.