Best information on FNB personal loans in South Africa
Personal loans are very popular in South Africa because they can be used for a wide variety of purposes. A First National Bank (FNB) loan is even more popular because the bank has many loyal clients. It has served South Africans for many years and is a registered credit provider that is trusted and regulated by the National Credit Regulator.
So, how do you apply for First National Bank loans? This article gives you the best information on that and more.
How do First National Bank loans work?
For a general idea of First National Bank loans here’s what they look like at a glance:
- Minimum amount: R1,000
- Maximum amount: R300,000
- Minimum term: 1 month
- Maximum term: 60 months
- Interest rate: The FNB personal loan interest rate varies from 12.75% to a maximum of 27.75% per annum.
To get from point A where you’re thinking of making an FNB online loan application to point B where you have the money in your bank account, here’s how the overall process works:
- You apply by visiting FNB’s website and providing the required details and information.
- Once your credit is approved, FNB transfers the money into your bank account.
- You can use the money for anything you want.
- You start making monthly repayments as agreed until you finish paying off the principal amount, interest plus other charges.
FNB personal loans use
A First National Bank personal loan is a general-purpose credit that can be used for the following:
- To renovate your house and transform it into the home you’ve always wanted.
- For your big day when you finally get married in front of your family and friends.
- For a well-deserved and relaxing holiday.
- To cover any other planned and unplanned costs.
Advantages of First National Bank loans
As mentioned earlier, FNB personal loans are one of their popular products. Here are a few reasons why this is specifically so:
- Personalised interest rate: When you apply for a loan at FNB, you get a competitive interest rate that rewards you based on your credit report and individual circumstances.
- Flexibility: You have the freedom to choose FNB online loans from R1,000 up to R300, 000. With this range, you’re guaranteed to find an amount that suits your needs.
- You can get an unsecured personal loan. This requires no security or collateral.
- Convenient repayment options: You have up to 60 months to pay back your debt and many ways to make repayments. Furthermore, fixed repayments mean you can always accurately calculate your monthly budget.
- You get protected as an FNB customer: Through their Customer Protection Plan (CPP) you can have credit insurance. This covers you if you’re unable to pay off your debt due to specific reasons such as death, retrenchment, permanent disability or a global pandemic.
- No penalty fees when you make early repayments: If you choose to finish paying off your credit earlier you won’t be charged extra for it.
- You get some relief every January: With Take-A-Break January you can skip a payment if you’re suffering from January disease. This is just an option, however. You can still make repayments if your budget is under control.
More about the Take-A-Break in January
As mentioned above, one of the convenient benefits of FNB loans is the opportunity to take a break and not make a payment for January. However, if you have the means, it is always best to pay off your credit as quickly as possible. The Take-a-break in January option is only available for accounts with a term of over 6 months. Also, to qualify for this benefit all your monthly repayments have to be up-to-date beforehand.
What is the FNB personal loan interest rate?
FNB is a registered credit provider and is regulated by the National Credit Regulator. Hence, FNB personal loan interest rates are capped at 27.75%. When the interest rate is personalised, it means that bank calculates the interest rate based on your individual circumstances. Generally, the following factors are considered:
- Credit report and credit score; and
- Employment and financial details.
What do you need to apply for a First National Bank personal loan?
The requirements for an FNB online loan application stand as follows:
- First, you must be between 18 and 64 years;
- You should be permanently employed or self-employed;
- You must have a South African bank account where your salary gets deposited; and
- Lastly, you should be a permanent resident of South Africa.
In addition, to complete the FNB online application, you’ll also need the following documents:
- A valid, green-bar coded ID or Smart Card ID;
- Your latest payslip;
- Your latest proof of residence that is less than 3 months;
- If you don’t have an FNB account you also need bank statements for the last 3 months; and
- Lastly, if you’re self-employed and you also don’t have an FNB bank account, you need bank statements for the last 6 months.
Calculate monthly repayments for your FNB personal loan
The calculator lets you pick the amount and term you want. Next, it calculates the estimated monthly repayment for you.
How do you make an FNB online loan application?
CompareLoans provides you with a gateway to the FNB online loan application process. After using the calculator above, click “Go to Site.” You won’t miss the “Apply now!” button once you visit the FNB website. Click on this button to start the FNB online loan application process.
Fill in all the required details and submit. If the application is approved, representatives from FNB will get in touch with you.
How long does FNB personal loan take to pay out?
Once your application is approved, the funds are usually available within a couple of days, if not sooner. How long it takes depends on the type of credit you’re applying for and the specific requirements.
How do you make repayments for First National Bank loans?
There are several ways to make FNB personal loan payment arrangements:
- Via the FNB App, FNB ATM, or FNB Online and Cellphone Banking, where you make an electronic transfer (EFT).
- You can set up a debit order or DebiCheck.
- Lastly, you can deposit the payment into your loan account by visiting an FNB ATM or branch.
The top-up option for FNB loans
If you have already taken out finance with FNB, you can apply for a top-up or additional funds of up to R300 000. What’s more, you get a maximum fixed repayment term of 60 months, and there’s no initiation fee or a penalty fee for early repayments.
What other types of FNB loans can you apply for?
FNB short term loan
An FNB short term loan is referred to as temporary credit or an FNB instant loan. These FNB online loans have the following features:
- No documents are required
- There is no interest charge. You only pay one fee.
- You can start paying off the credit on the next day after receiving the funds.
FNB student loan
An FNB study loan lets you apply for a minimum of R4,000 and a maximum of R80,000 for every year that you’re studying. The credit also comes with credit life insurance to cover you in specific situations where you’re unable to pay your debt.
You can use the funds from FNB to pay for tuition fees, books, required material and equipment, plus accommodation. When you take out an FNB study loan, you only make repayments for interest and charges. You finish paying off the rest after graduation.
FNB revolving loan
This requires you to be an FNB customer with a good credit score. With an FNB revolving credit, you don’t need to apply every time you need extra cash. The loan gets linked to your bank account, and you can withdraw money any time, anywhere, if your account balance becomes too low. Other features of this type of finance include:
- For repayments, you can choose a variable payment option where repayments depend on how much of the amount you have used. Alternatively, fixed payments mean your instalments are always the same amount.
- You can choose to also apply for credit insurance.
FNB debt consolidation loan
This is money you use to pay off your debts from various credit providers. What this means is, you’ll only have a single First National Bank loan that offers only one monthly fee and repayment. Find out more about debt consolidation loans.
Credit cards
This is an FNB line of credit that allows you to make payments with a click, tap, or swipe.
Overdrafts
For a monthly fee of R200 or more if the facility is used, you can still withdraw funds from your bank account if the balance is low. You then pay back the overdraft the next time money is deposited into your account.
FNB personal loans: Frequently asked questions
Are FNB loans available for bad credit?
No. There are no FNB loans for bad credit. This is because the bank carries out credit and affordability assessments for all applications. Therefore, it will only be approved if your credit report indicates that you’re creditworthy.
How much can I borrow with First National Bank loans?
The amount FNB approves depends on your monthly income and other factors which apply during the affordability assessment.
Do I qualify for a First National Bank personal loan if I don’t have an FNB account?
Yes. You can still submit details of your bank account along with bank statements for the last 3 months.
More on FNB in this short video
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