How Does FNB Budget Facility Work

How Does FNB Budget Facility Work, 2022, South Africa Budget Facility Account

Wondering How Does FNB Budget Facility Work? Well, here is the guide to give you all the details.

First National bank offers several products to their customers, but they don’t understand how it works.

If you among FNB customers searching to know how the FNB budget facility Works, you have come to the right place.

You’ll find this quick guide useful as there are details about the FNB budget facility ranging from what it is all about to how it works.

More so, I’ve used simple terms for easier understanding.

What Is The FNB Budget Facility In South Africa?

FNB budget facility refers to where you are obligated to pay a large amount of money with stipulated months in installments at a reducing balance.

The FNB budget facility is offered when you are buying a house or a car and you are offered a loan but is under the budget facility.

In simple terms, a budget facility is like a loan, and you are required to pay a certain fixed amount per amount over a certain period.

The bank stipulates the terms, and upon the agreement, you are obligated to adhere to them. Failure can result in affecting your credit score.

How FNB Budget Facility Works

After you have qualified for the FNB budget facility are issued with the loan, it is bank expectations you adhere to agreed terms.

As a credit cardholder, you are required to pay a minimum upfront amount and then the remaining amount on a fixed amount in reducing balance with the agreed time.

The advantage of this type of credit is that you are given enough time to repay the credit.

On the setback side, there is like the hood of paying more interest rates on credit used.

The fact that you’re given adequate time to manage your credit, the budget facility can be costly due to the high interest rate and can be detrimental to your credit rating.

On a positive note, the budget facility is particularly dangerous as it creates a “buy now and pay after” philosophy leading to the illusion it is a better deal.

The reality is that the pay later part can be very costly because you pay high interest on the money you borrow.

If a few payments are missing, this can lead to an uncontrollable spiral of debt.


Conclusively, the budget facility works like when you take out a loan and use it to purchase an item and pay the loan in installments.

The bank carries an evaluation of your qualification before issuing the credit. Hence your credit score should be at a good rating.

That is all you must know about how does FNB Budget Facility Work.

Here is the list of our latest guides:

FNB Ghana Internet Banking, Namibia Online BankingeWallet CodeTemporary LoanBank Your ChangeTax-Free SharesBusiness Loan WorkCheck Loan StatusTravel InsuranceFNB WillEntertainment AppTax-Free InvestmentMoney MaximizerFNB AppShare BuilderStokvel Savings AccountATM DepositGold Cheque AccountCall AccountQualify For Student AccountCancel south Africa Student AccountOpen Student AccountQualify For Cheque AccountHow Student Account Work.

This simple and easy Banking and Finance Article Was Last Updated on 16th April 2022 by thetransfercode

Please you must visit this article “” for updates and any possible changes that we may make to this guide. In this month of June 2022, we have a lot of guides on banking and finance for you on this website. Read more.

The year 2021 was awesome. In 2022, we are actually bringing you the very best of banking and money transfer experience. Just stay tuned for more How-To articles. You can come back for more banking and financial guides.

For the year 2022, we have a great deal of banking and financial guides that will help you make money transfers and other bank transactions very fast. It doesn’t matter where you are.

Here is the list of our latest articles, check them below:

Leave a Reply

one + 11 =

This site uses Akismet to reduce spam. Learn how your comment data is processed.