Do you want to know how the Absa consolidation loan works in South Africa? Check out this quick guide.
A consolidation loan is a loan taken to pay out other loans and liabilities you might have.
The multiple loans are combined into a single larger debt with more favorable pay-off terms.
We will first show you the qualifying criteria for this loan.
What Are The Qualifying Criteria For Absa Consolidation Loan
Below are the requirements to qualify for the Absa consolidation loan:
- You should be a South African 18 years and above
- National ID or smart card
- Minimum monthly income of R2 000
- Proof of residence like a rate bill not older than 90 days
- Last three months bank statements showing your income deposits
- Last three payslips you received as proof of income
These are the basic requirements to apply for the Absa consolidation loan in South Africa.
Absa Consolidation Loan
Depending on your income, you can loan depending on your income, but the maximum loanable amount is R350 000.
The repayment period ranges up to84 months, making it very flexible and convenient for most people.
The interest rate starts at 17.5%, one of the lowest offers compared to other banks in South Africa.
You can take a secured or unsecured consolidation loan.
With the secured loan, you need an asset like a house or a car as collateral for your loan but for the unsecured loan, you do not need any collateral security.
Debt consolidation maximizes the likelihood or the possibility of collecting from a debtor, so many banks provide this service to the general public.
This is how the Absa consolidation loans work in South Africa.
How To Manage Debts With This Policy
Create a budget on your expenditures to reduce your spending and create a view for cost-saving.
Obtain an insurance cover with a competitive rate to protect you and your family against loss or damage.
Rebuild your credit history by ensuring all small debts are paid on time to reduce the negative information reflected on your credit report.
Avoid over-indebtedness and seek financial management assistance and debt counseling from financial experts.
This is all you need to know about the Absa consolidation loan in South Africa.