Get the full details on Ubank personal loans
Ubank loans can be a powerful financial tool when used wisely and correctly. One way to ensure your loan’s proper use is by improving your financial knowledge. You need to know how Ubank personal loans work, and CompareLoans.co.za brings you all the necessary information in this article.
As an introduction, Ubank loans are a type of credit that can help you make a big purchase or consolidate all your debts into one monthly payment. You can also use the loans for several other purposes.
How much can you borrow? – Between R10 000 and R180 000
How long can you borrow? – Between 12 months and 72 months
Read on to find the best and useful information about Ubank loans.
How does a Ubank personal loan work?
When you apply for a loan, the bank’s representative will get in touch with you. If your Ubank loan application gets approved, you will have to sign a personal loan agreement. The document contains all the necessary terms and conditions and how much you can borrow depends on your income.
With Ubank loans, a loan insurance covering disability, retrenchment, and death of the borrower is a mandatory requirement. That means that your monthly instalment will include the credit life assurance premium fee as well as your interest fee and service fee. If you do not wish to use the insurance policy proposed by Ubank, you can submit an insurance policy proposal of your own that may or may not be approved.
What are the Ubank personal loan rates and fees?
- Initiation fee: The bank charges 16.50% for the first R1,000 and only 10% for every R1,000 beyond the first. The fee is capped at R1,207.50, including VAT.
- Monthly service fee: The R69 service fee is part of your monthly repayment amount. The amount includes VAT as well.
- Credit life Assurance fee: This will also be part of your monthly instalment.
- Ubank loan interest rates: For short term loans, you get an interest rate of 5% monthly. Loans with a longer repayment period have an interest rate of 27,50% per year.
- All fees and rates charged by Ubank are compliant with the terms of the National Credit Act.
Use the Ubank personal loan calculator
The Ubank personal loan calculator from CompareLoans.co.za allows you to quickly calculate your monthly repayments before making your loan application with Ubank. It’s simple and very easy to use. Just use the sliding tools provided to enter your loan amount and loan term, then click on the “Calculate Repayment” button. The results will be instant, and from there, you can make an informed decision.
What are the requirements for a Ubank loan application?
Before your loan is approved, Ubank will check whether you meet their requirements. Some of the requirements are listed below:
- Be a holder of a valid South African ID;
- As the borrower, you should present the latest original copy of your payslip;
- Proof of residence is needed, preferably one that is not older than 3 months;
- The bank will need a list of all your regular expenses;
- A written and signed consent from your partner if you are married and in community of property;
- Bank account statements (past three months);
- At least two different contact numbers, yours and that of your next of kin or relative; and
- Ubank will also run a credit check to give you a loan that suits your needs.
Before you apply for a Ubank personal loan, you also have to confirm the following details:
- You are fully employed during the application period;
- You have not declared bankruptcy, and are not under Debt Administration or Review; and
- As the borrower, you also have to openly state all other credit applications that you have made regardless of whether they were processed or not.
How to apply for a Ubank personal loan
To apply for a Ubank loan, simply click the “Go to Site” link for Ubank in the comparison tables above. You will be quickly redirected to Ubank’s application page. The application process is quite straightforward. The first step involves filling out a loan pre-application declaration form. After you complete filling out this form, you will be directed to the next step.
Here you provide your credentials, name, surname, and ID number. The second form also asks about whether you have your own credit life assurance cover. After you complete the application, all you have to do is wait for the bank’s response.
How to repay a Ubank loan
The easiest and most convenient way of paying back your Ubank personal loan is by setting up a debit order. That way, your monthly instalments are deducted from your account automatically on the agreed-upon date. This is quite easy to set up, and the bank does all the hard work for you. For this option simply provide your bank account details as you are applying for the loan.
Other methods that you can use to pay back Ubank loans include the following:
Electronic Fund Transfer/EFT
This allows you to pay your monthly instalments straight into Ubank’s account when your payment is due.
You can transfer the funds directly using a BPay biller code from the bank.
Who can apply for a Ubank loan?
Some banks only accept loan applications from their existing clients. With Ubank, anyone that meets their qualification requirements can successfully apply for a Ubank personal loan.
How can you use the cash from a Ubank personal loan?
If you consider applying for a loan, you also have to be sure that you absolutely need one. It is unwise to borrow money just because you can. However, there are many situations where you might need a personal loan if you’re short on cash:
What are the benefits of a Ubank loan?
- Ubank requires you to have credit life insurance as part of your loan. This means that your loved ones will not be burdened in any event by paying back your loan.
- You can use the Ubank loan to consolidate your debt and make it more manageable. This can help you improve your credit score.
- It improves your chances of getting another loan in the future.
- You are also likely to get lower interest rates on future loans
Ubank began its long history of providing essential and authorised financial services to South Africans as far back as 1975. The bank is fully available to the public, including workers within the gold and platinum mining sector. To provide convenience to you, Ubank offers customer accessibility via its easy and secure online platform, which you can access by clicking the “Go to Site” button on this page.
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