Personal Loan - Advice Needed

supersunbird said:
Have you taken out a lot of loans? None of the 3 personal loans I have taken out or my home loan worked like that, nor any of my 3 car loans. Of course access home loans work like that, it's their main feature.
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You should have been more financially astute with your home loan then.
 
The_Donkey said:
Try not to get a loan that revolves. Else you'll be in debt forever.

It basically allows you to withdraw the money that you've already paid back and use it again, but then they add interest.
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There you go, Mr. Donkey.
 
You will only qualify for 3x your monthly salary at most as per the NCA rules.

Easiest would be to apply for an access bond and then pay it back faster. It would have the lowest interest rates.

Otherwise expect between 15-25% interest per annum.

Nedbank may be easiest to get the loan from.
 
Splinter said:
Then why did you say one could, but they just add interest to it?
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They take their interest based on the outstanding balance. Should you need money, you can then again withdraw whatever surplus is left up to the total loan amount

If your revolving limit is R50k
You use R40k
At the end of the month they charge you R1500 (random example) in interest.
You now have R8.5k available
You pay the R1500 interest and choose to add another R1500
You now have R11.5k available

The cycle is allowed to continue until infinity. It works almost exactly like a credit card, but you can't exactly go to a store and purchase with a loan account

A term loan is as an example 24 months. If that outstanding balance is not paid by the 24th month, the bank can take legal action.
 
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The_Donkey said:
They take their interest based on the outstanding balance. Should you need money, you can then again withdraw whatever surplus is left up to the total loan amount

If your revolving limit is R50k
You use R40k
At the end of the month they charge you R1500 (random example) in interest.
You now have R8.5k available
You pay the R51500 interest and choose to add another R1500
You now have R11.5k available

The cycle is allowed to continue until infinity. It works almost exactly like a credit card, but you can't exactly go to a store and purchase with a loan account

A term loan is as an example 24 months. If that outstanding balance is not paid by the 24th month, the bank can take legal action.
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Yeah, something I would stay away from. I think best then seems to be to go to all the banks and check who will give the lowest interest rate or personal loan.
 
RedViking said:
Yeah, something I would stay away from. I think best then seems to be to go to all the banks and check who will give the lowest interest rate or personal loan.
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Loans whereby you provide collateral will usually be at better interest rates versus unsecured loans.

If I understood correctly you own a home, but don't have a bond, perhaps engage the banks for loans whereby the house is used as security.

You mention the money is required for legal fees, have you spoken to your lawyer about options? The may be some kind of insurance / security that can be used as opposed to outright payment of the legal fees.

They (legal firms) may also have loan options against collateral.
 
thechamp said:
Interest rates are low, just approach all the banks and go with the lowest interest loan, I have a revolving loan that's currently at 14.5%.
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If you think about it, it's still exceptionally high compared to where banks are doing their funding at! It's disgraceful but a necessity I guess.
 
PhreakBoy said:
Loans whereby you provide collateral will usually be at better interest rates versus unsecured loans.

If I understood correctly you own a home, but don't have a bond, perhaps engage the banks for loans whereby the house is used as security.

You mention the money is required for legal fees, have you spoken to your lawyer about options? The may be some kind of insurance / security that can be used as opposed to outright payment of the legal fees.

They (legal firms) may also have loan options against collateral.
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I don't own a home unfortunately. I rent. Can't afford the lawyers even with their ridiculous payment plans. These guys rape you dry.
 
Mista_Mobsta said:
If you think about it, it's still exceptionally high compared to where banks are doing their funding at! It's disgraceful but a necessity I guess.
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If you look at the loss and default rates for unsecured loans it's actually not much more profitable for banks than things like car and home loans. Even given the much higher rates.
 
RedViking said:
I don't own a home unfortunately. I rent. Can't afford the lawyers even with their ridiculous payment plans. These guys rape you dry.
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Nothing else of value that could be put up as collateral in order to qualify for a better interest rates? Paid off cars or shares / unit trusts?

Does your RA or other investments offer options to loan money against them? I recall that someone I know had an Old Mutual product that allowed for an interest free loan against the product.

I hate suggesting this, but might be worth considering taking it out of your TFSA (or perhaps you have a preservation fund from an earlier employer)?

I think these are about all the alternatives I can think of as opposed to paying those ridiculous amounts of interest that come with personal loans.
 
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do you need to pay for services already rendered or future services?
 
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