Are you applying or have an existing Absa Personal Loan? If the answer is yes, here are 5 essential tips that will make it easier for you to handle the loan and maximize its advantages.
1. Apply for the loan online.
If you already have an account with Absa, applying for their personal loan will be a breeze. All you need to do is log into your Absa online account and look for personal loans.
All requirements will send online, so you don’t have to go to an Absa branch to apply personally. Just make sure you have a good credit rating beforehand to make the application quick and easy.
No collateral needed for Absa personal loans. The decision for approval and the loanable amount will increase all base on your creditworthiness.
After submitting the form online, all you need to do is sit back and wait to get approved. Once approved, you can get the money within an hour.
2. Use the online calculator.
Before applying for an Absa personal loan, compute the projected expenses first using the online calculator on the Absa website. It’s free and easy to use.
Using the Absa loan calculator, input the amount you want to borrow. The loanable amount ranges from R250 to R350 000.
After this, select the repayment period you plan to take. The minimum repayment term is 12 months, while the most extended period you can apply for is 84 months or 7 years.
The interest rate will depend on your credit rating. But to estimate costs, you can refer to the prime lending rate.
The calculator will display everything you need to know about the cost of repaying the loan. This includes the service fees and initiation fees Absa charge to clients.
3. Get the credit protection plan.
Adding insurance on your Absa personal plan can go a long way in protecting you and your loved ones from unexpected circumstances.
With the Absa Credit Life protection plan, you can remove the financial burden from your family if you get disabled, retrenched, diagnosed with a critical illness, or even when you pass away. Any existing balance on your Absa personal loan will be automatically paid in full if any of these situations happen.
Sure, it will cost you a few more on top of your monthly repayments, but the assurance that the Absa Credit Life protection plan provides is unparalleled.
The cost of the plan will vary on the loan amount you’re applying for. The more significant the approved amount, the higher the Absa Credit Life protection plan’s value.
4. Get better interest rates with Absa Price Guarantee.
Has another lender promised you a lower interest rate? Absa can match it at the least or even offer a better rate with the Price Guarantee feature.
If you already have an Absa Personal Loan and another lender offers you around the same rate. With better benefits, Absa can match it with a more competitive price that will encourage you to remain with them.
Under the Absa Price Guarantee, you’ll get better interest rates and monthly repayments lower than the initial terms you had on your Absa personal loan.
Take note that the Absa Price Guarantee can be claimed only within 30 days after you receive the terms of your initial loan.
5. Take advantage of Personal Loan payment relief.
Absa can give you a three-month break on your loan repayments. This is useful if you’re having temporary trouble with your income due to a reduction or other financial emergencies.
The payment relief won’t reduce your existing balance, and you’ll still be charged with fees and interest rates accordingly. What will happen is that you’ll just be extending the loan term in exchange for the break period.
For instance, let’s say you have 52 months left of loan repayments with a balance of around R110 000. When you take a three-month break, you won’t be paying anything for the said period. However, your loan term will be extended by around nine months to compensate for the payment break.
Conclusion
We, always hope these tips will help you in applying, managing, or maximizing Absa Personal Loans. As, all we know that you can use Absa Personal Loans however you want to. But since it’s still a form of debt, remember to remain smart on how you spend the borrowed money for risk free better management your asset.
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