Capitec Bank Personal Loan Application Details

Based in Stellenbosch, Capitec Bank has been serving customers since 2001. In less than 20 years, it has acquired 10 million clients and R19 billion in shareholder funds and opened 826 branches. It has different financial solutions like Capitec Bank Personal Loan.

Capitec Bank Personal Loan

Unlike a mortgage, which must be used to buy a house, people take out a Capitec Bank personal loan for all sorts of reasons. They may use the money to renovate their home, take the voyage of a lifetime, pay for an eye-popping engagement ring, or settle accounts for an education or medical expenses. Sometimes, people apply for an online loan to consolidate several small debts into one for a lower total payment.

How a Capitec Bank Personal Loan Works

A client borrows between a sum of money and pays it back in monthly installments. Because the bank has to turn a profit so it can stay in business and serve other clients, it charges a percentage of the total sum borrowed. This is called interest.

Interest rates on a Capitec Bank personal loan is expressed as Annual Percentage Rates (APR) and include the interest rate plus any additional charges of borrowing. Such charges might include:

Pre-paid interest
Administration fee
Loan processing fee
Underwriting fee
Document preparation fee

The APR includes only compulsory fees such as those listed above but does not include payment protection or penalties for late payments.

Capitec Bank Personal Loan Interest Rates

For loans between R1,000 and R250,000, interest rates begin at 12.9 per cent and increase depending on the customer’s personal circumstances. Capitec takes the following factors into account when setting the interest rate for an individual personal loan:

The size of the loan

You can get a loan up to R250,000. The lowest interest rate, starting at 12.9%. The term of the loan (maximum 60 months). The longer it takes to pay off the loan, the higher the interest rate charged by the bank. The customer’s personal circumstances. These include, but may not be limited to, income and credit history. Someone with an unproven track record for making payments on time or who has a history of frequently paying late will pay a higher APR than a client who has been a loan customer for many years and never missed a payment. You can get an estimate online or use their banking app to apply for a loan anytime.

Personal Loan Monthly payments

A loan of R10,000 might attract an APR of 14.2 per cent. In this case, the monthly payment over 12 months would be R105.06 and the total sum borrowed would come to R13 260.68. If a customer has a high enough monthly income to increase the size of the monthly payment, they could opt to pay it over a shorter term. While the APR would remain the same, the total sum borrowed would be correspondingly lower. Please note that R1 207.50 initial fee will be applied.

How to Qualify for a Capitec Personal Loan

In South Africa, a customer must be at least 18 years old and no older than 65 to be able to apply for loan. Capitec will also take into account a customer’s ability to pay based on their monthly income and expenses. If they bare make ends meet, they will not qualify to take on more debt.