African Bank long term loans are very easy to apply and are authorized faster. African Bank personal loans start at R12 000 to R180 000, for individual usage, family needs, life emergency, settling debts, travels, house extensions, and even paying school fees.
Repayments schedule is based on the amount of the loan.
African Bank loans Repayment term:
- A R12 000 bank loan has monthly repayment of R733 per month over 36 months. Total loan repayment is R26 385 over three years.
- A R15 000 bank loan has monthly repayment of R830 for 42 months. Total loan repayment is R34 860 in three years.
- A R25 000 bank loan has monthly repayment of R1199 every month for four years, total loan repayment is R57 000.
- A R32 000 bank loan has monthly payment of R1351 for 60 months. Total loan repayment is R81 000 over 5 years, a 250% on the original loan.
- A R80 000 bank loan has monthly payment of R2 638 every month for 6 years. Total loan repayment is R180 000.
- A R180 000 bank loan has monthly repayments of R4766 every month over 84 months. Total loan repayment is R400 000.
The interest rates on small personal loans have a higher cap compared to home loans that usually have a double total repayments over 20 years, and less than double over five to eight years period.
The client of the bank intending to apply for the loan needs to calculate repayments affordability to personal budget vs other debts/credit. African Bank has shorter repayments structures. However it is advisable for the clients to be comfortable spot for repayments in the long term, and not suffer a possible relapse and constrains that may lead to default of the debt.
Personal loans to clients usually have a higher risk compared to property, vehicle, business and other asset based loans due the fact that these assets can be repossessed by the bank, and once repossessed these assets can be put back into the market and sold off and recover the outstanding money to the back.
Clients sometimes do not pay in full the personal bank loan, which is always a challenge for the bank. Failure to pay back the loan by clients puts the bank in a difficult position, and collection of the debt can be challenging, thus the bank has high repayment rates of personal loans to cover losses that do occur.
A client thinking of applying for personal long term loan needs to familiarize themselves with the repayment terms and conditions. The client needs to have a basic understanding of the repayment models that the bank offers.
Any expense or financial need the client has but cant afford them till a later date, and has assurance from their company or other source of income to be paid later can arrange to meet with the loan department of African Bank and structure finances for a possible loan. And there are no penalties for shortening the loan.