Need some info on personal loans

[AnibugZA]

The only kind of good loan is a home loan. The rates are usually by far the lowest out of all kinds of loans (because of the long term). Instead of getting a personal loan, rather buy a house and get a home loan. Make the home loan a bit larger and then you have access to some lower interest money. I did this to buy my motorbike which I use to commute Pta-Jhb daily.

But still, spending so much money on a wedding is ridiculous. Mine was around 60k (5 years ago) and I thought we were being very extravagant. We had 125 people, a 4-course buffet and a really stunning venue. I had a custom dress made of imported Italian lace. I had an amazing wedding, but in retrospect there was a lot of stuff we could have done that would have been just as amazing, beautiful and fun that would have cost us half the money.

But even with a R100k deposit on a house, who says the bond repayments will be as affordable as rent?

These days, rent and bond repayments are not massively different. (For a lower-end place, that is) A young married couple doesn't need much more from a starter home than a 1 or 2bed apartment or flat. The rental cost of our unit before we bought it was a few hundred Rand off from the bond repayment. Of course we have to add levies & rates on top of the bond payment, but on the upside we're putting money into our own pockets instead of towards someone else's.

Of course if you're looking for a 5-bedroom mansion with a pool in a security estate, rent is gonna be a fair bit less than bond. :wtf:

 

[Pearson6]

Hi well if you do decide too take the loan they now add an initation fee which means if you settle the loan sooner then you wont be paying any penalty interest most banks charge that fee ontop of the capital balance you borrowing, what a lot of people dont know an unsecured loan interest rate can be negotiated especially if you banking with a big bank.

If you really would like too get the money rather opt for an overdraft facility if your income will allow it or opt for a revolving loan but dont shop around too much. Banks with the best interest rates at the moment is ABSA which can be negotiated, FNB, Capitec and standard. Nedbank is like a private big African Bank they take you for all you have.

 

[SauRoNZA]

S

It is not the wedding that matters, it is the marriage.

Now that's a statement worth remembering.

 

[Chevron]

But even with a R100k deposit on a house, who says the bond repayments will be as affordable as rent?

Rent goes up every year, while house repayments don't.

In 3 years your rent will be more than the home loan and only be getting more expensive, without something to show for your money.

 

[Wall]

I'm planning on.getting married in 2/3 years and I've already told my girlfriend that we will not be taking loans for the wedding. Rather start saving now and pay cash and what's within your budget.

 

[Gtx Gaming]

Apparently in my gf's tradition , her dad needs to pay for the wedding , she's Scottish, think she's the one

But yeah as stated above , do not take that personal loan , couples fight allot because money etc, you don't want to fight about that and put stain on your relationship.

 

[Dimpled_Dude]

Hi guys, I'm looking at getting a personal loan of R100k-R150k. I would normally never consider a loan as I would just save my money until I had acquired the amount I needed. Don't spend what you don't have is what I've been taught.

Unfortunately this time I do not have enough time to save up as I'm getting married in a few months and the financing of this event has fallen completely on my shoulders. I've never borrowed money before so I could do with some advice.

What do I need to look for and be aware of. Any recommended financial institutions I could approach? And institutions i should just stay clear of? What type of questions do I need to ask?

Thanks in advance.

Dude, dont take out a personal loan. Save for the wedding instead...

 

[Aghori]

Dude, don't go for ANY form of credit with nowadays economy. It's understandable if you need to buy a house/car, these are the ONLY things you should ever buy on credit.

 

[creeper]

Apparently in my gf's tradition , her dad needs to pay for the wedding , she's Scottish, think she's the one

You have a keeper. Scottish, Whiskey, she can fight for you in bars (they tend to have a temper and no fear). The only drawback is the Haggis

 

[MandM]

Elope

 

[hellfire]

Thanks for the advice and concern guys. Think I'll stay clear of this option.

I am curious however and I'll use the above example of taking a loan of R100K @ 15% for a period of 5 years. My total repayment is R143K. But what if I repay the entire loan back in 3 months, do I still owe the 43K or do i just pay the interest for the 3 months?

Just the three months.

The NCA prevents the charge of penalty fees.
You can settle it as quickly or as slowly as you want.
However, there will be initiation and admin fees which you aren't considering in your repayment costs, and 15% is very unrealistic for a personal loan. Realistically you will pay 22% or more .