Minimum and maximum loan periods vary between 1 months and 10 years. Comparison interest rates vary between 6.55% and 60% p.a. Total interest repayments vary between R685.05 and R844.12 over the life of the loan. *Comparison rate is based on an unsecured loan of R20,000 for a term of 3 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. These rates can change without further notice. All rates quoted are per annum. For more information regarding fees click on "View fees & additional info +" for each product or contact the provider.
About Old Mutual personal loans in South Africa
Old Mutual is a strong and trusted name in the South African world of finance. If you’re looking for an Old Mutual personal loan in particular, then we have something for you here at CompareLoans. We have gathered the necessary information about Old Mutual loans and put it all in one place for your convenience. When you keep reading on, you’ll learn about:
- Old Mutual consolidation loans;
- Other types of Old Mutual loans;
- The Old Mutual loan process; and
- More useful information to help you choose the right loan that meets your personal needs.
Do you need an Old Mutual personal loan?
There are a lot of reasons why one might end up needing some extra money. If you’re faced with the following situations, applying for an Old Mutual personal loan might be a good idea:
- You want to pay for an essential item, such as an outstanding bill. Other times, you may also wish to use the money to cover an emergency, travel, family support, or other crucial personal business.
- Your debt needs to be consolidated so you can manage your monthly repayments at a lower cost.
- There are no savings available to cover the above-mentioned expenses.
- The loan amount is used for an investment that produces profitable rewards, for example, education or new equipment.
Even if you have any other unique situation that requires you to borrow money, Old Mutual loans have terms that are tailored to suit your individual needs and capacity.
What are the common features of Old Mutual personal loans?
- The 3 month loan is available for loan amounts between R500 and R5000.
- 6 month loans are also available for loan amounts between R500 and R8000.
- You can also get the 12-month loan, which is available for loan amounts between R500 and R20 000.
- The 13-60 month loan is available for loan amounts between R3000 and R175 000.
- For a loan term between 60 and 84 months, you can borrow up to R200 000.
- Interest rate is fixed, and the maximum interest rate is 26.25%.
- Charges include an initiation and a monthly service fee.
- You can use the money for most general purposes. However, the Old Mutual personal loan is only available to individuals, not businesses.
How does the Old Mutual lending process work?
Old Mutual understands that our situations are all different. When they receive your loan application, they take the time to look at:
- What you can afford – They follow National Credit Act guidelines to help you borrow responsibly. That means they use the information on your Credit Bureau Report and Personal Risk profile to determine the loan amount you can afford.
- How much you understand – Sometimes it is tricky to make sense of all the financial terms involved when you borrow. Old Mutual will try and make all the information you should know as clear as possible. This includes knowing the total cost of the loan you want to take out.
- What your needs are – Basically, Old Mutual only approves your application if it suits your needs and circumstances.
For loan terms above 12 months, you also have to apply for Credit Life Insurance
For this, Old Mutual has a policy with their insurance company OMART. The credit life premium is paid per month, and how much you pay depends on the loan amount. The insurance will take over your payments if you die, become disabled, or are retrenched.
However, there are conditions attached to this. For example, you’ll not be covered if you commit suicide. You can also choose your own policy provided that it offers the same level of protection required by Old Mutual.
The following is an example of the overall fees associated with an Old Mutual personal loan:
Say you are borrowing R50 000 for 36 months (3 years), then:
- The monthly service fee is set at R69.00;
- There is also an initiation fee of R1207.50;
- An interest rate of 24.75% is charged;
- Plus, credit life insurance that is between R151.06 and R230.43; and
- You will thus be required to pay a monthly instalment of R2 049.74.
Please note that this example is based on an estimate. Your interest rate, loan term, and amount might vary depending on your credit score.
Calculate your monthly repayment with our online calculator
Before applying for Old Mutual online loans, you should take the time to use the loan calculator on this page. It will help you to understand your loan terms better and assist you with your monthly budget. On the calculator, all you have to do is:
- select the loan amount;
- choose a loan term; and
- click “Calculate Repayment”
The calculator will then give you the estimated amount of money that the bank will require you to pay monthly. If you are comfortable with the monthly repayment amount and you know you can afford it, you can proceed and apply for the loan.
What documents are needed when applying for an Old Mutual personal loan?
- A government-issued valid South African ID;
- Your most recent and current payslip which is not older than one month; and
- Latest 3 months bank statements. The statements should show your salary deposits for the 3 months.
What else do you need to qualify for an Old Mutual personal loan?
- You should be 18 years old or more;
- Minimum monthly salary should be at least R2 500;
- You should be able to finish paying off your loan before you reach an age that is over 60 years;
- For a 3-12 month loan, you should have been permanently employed by the same employer for longer than 3 months; and
- If you want a 12-84 month loan, you should have been permanently employed by the same employer for 12 months or more.
The Old Mutual loan process: How to apply
You can make an Old Mutual loan application over the phone or by visiting the nearest branch. However, CompareLoans gives you a more convenient way to access Old Mutual loans; apply online by clicking the “Go to Site” button located in the comparison tables above.
This directs you to the Old Mutual application page. When you’re on the page, select the apply option, and fill out the online application form. You will then email or fax your supporting documents. After that, all you have to do is wait for a response.
How long does it take to get your loan?
When you apply online, you can easily finish the application process within minutes. Make sure that you qualify for the loan by double-checking the requirements. Also, check if you have uploaded and submitted all supporting documents.
Old Mutual will pay the loan amount into your bank account in the next 24 hours if everything is in place. When you receive your loan, you will also receive an SMS to let you know of your loan’s approval.
How do you make repayments for your Old Mutual loan?
Old Mutual makes your loan repayments easier with their DebiCheck facility. Compared to other debit order systems, DebiCheck is a more safe and secure way of collecting repayments. When you sign your loan agreement, you also give the bank permission to deduct payments from your account.
When the due date has arrived, you’ll have to confirm the debit order via your mobile phone, bank ATM, or internet banking platform. Your bank will do a check to make sure everything is in place before processing the debit order.
Can you apply for a loan with Old Mutual as a first-time borrower?
Your credit history shows important details about the loans you have borrowed in the past. A good credit history gives proof that you are reliable when it comes to paying off your debt. If you have never taken out a loan before, Old Mutual has no way of knowing your creditworthiness.
They usually rely on your past credit record when reviewing your loan application. Therefore, as a first-time borrower, you may not be approved. If Old Mutual approves your loan, you’ll only be allowed to borrow a small amount. However, you can apply for more once you have a longer credit history.
Advantages of the Old Mutual personal loan
- Flexible loan amounts: you can borrow a minimum of R500 and a maximum of R200 000 depending on your needs. This makes this loan quite flexible enough to meet most personal needs.
- Affordable payment terms: You can pay back the loan over a period of up to 84 months, which gives you affordable monthly payments.
- Fixed monthly instalments: Through the #loancalculator, you can find out how much you will be paying back monthly so you can plan ahead.
- Reputable lender: Old Mutual is a fully registered financial services provider and a reliable institution in South Africa. When you choose Old Mutual as your lender, you can rest assured that you’re in safe hands.
What other loans are offered by Old Mutual?
- Old Mutual student loans – Although you can use an Old Mutual personal loan to pay for your education, there is something extra for students in the Accounting and Actuary departments. If your grades are exceptional, you can apply for a bursary that will cover most costs required to study at top South African universities.
- Old Mutual short term loans – With their 3 month, 6 month, and 12 month loans, you can borrow up to R20 000. This short term loan gives you a smaller amount that should be paid off within a year.
- Old Mutual consolidation loans – If you have many debts, you can apply for an Old Mutual debt consolidation loan. You’ll then use the money to pay off your debts, which leaves you with one monthly repayment, a single admin fee, and a longer loan term that offers lower monthly instalments and peace of mind. You can find out more about debt consolidation loans here.
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