Standard Bank Loan
Standard Bank is a South African-based financial services company with a global presence. We operate from 17 African countries and 21 countries on other continents, including the key financial centres of Europe, the Americas and Asia.
Does Standard Bank offer Personal Loans?
Yes, they offer personal loans which have fixed monthly repayments.
What are the features of a Standard Bank Personal Loan?
- Personal loans are suitable for financing large payments or purchases, such as appliances, furniture, school fees, or if you require credit over an extended period.
- Interest rates will vary.
- Loan repayments are fixed even if interest rates change.
What are the benefits of a Standard Bank Personal Loan?
- Easy access to additional cash funds
- Comfortable repayment periods and amounts
- Peace of mind and reduced financial stress
- Financing to suit your particular needs.
Do Standard Bank offer different types of Personal Loans?
Yes, there are two types of personal loan available, the Revolving Credit Plan (RCP) and the Way to Pay (WTP).
Type 1: The Revolving Credit Plan (RCP) explained.
A RCP is a revolving line of credit with a fixed installment and no fixed repayment period. You may borrow again on the same loan once you've repaid 15% of the agreed limit.
Standard Bank offer currently offer 2 types of personal loan:
Revolving Credit Plan (RCP)
A RCP is a revolving line of credit with a fixed installment and no fixed repayment period. You may borrow again on the same loan once you've repaid 15% of the agreed limit.
Amount you could qualify for:
- You could qualify for a loan of between 1 and 3.5 times your gross monthly income.
- The amount you qualify for depends on your income and your credit risk. Your credit risk is determined by the information held with credit bureaus, the way you maintain any existing Standard Bank accounts and your personal circumstances, for example, stability of job and fixed home address.
- Personal details such as race and gender do not affect our assessment of risk.
- The minimum amount you may borrow is R3 500 and the maximum you could qualify for is R100 000.
Cost:
Minimum monthly repayment
The minimum monthly repayments remain fixed for the lifetime of your loan at 1/45th of the original capital amount that you borrow. In other words, if you borrow R18 000 your monthly installment will be R18 000 / 45 = R400.
The table below shows the minimum monthly repayment amounts for different loan amounts.
| Loan Amount | Minimum monthly repayment |
| R10 000 | R222 |
| R20 000 | R444 |
| R30 000 | R666 |
| R40 000 | R888 |
| R50 000 | R1111 |
- When the prime interest rate changes, your minimum repayment amount remains unchanged while the loan period increases or decreases. This enables you to budget more effectively.
- If you have extra funds you may pay them into your loan at any time to reduce the outstanding capital loan amount. Additional payments made into your loan can be withdrawn again.
- The minimum installment is recovered monthly from your transaction account through a debit order.
Interest rate:
- The interest you pay on a loan is based on your credit risk. The rate is linked to the prime rate so that you receive the benefit when it declines and vice versa.
- Interest payable is calculated on your daily outstanding balance but charged to your account once a month.
- Rates charged vary between the prime rate and Usury maximum.
Monthly administration fee:
- You will be charged a monthly administration fee on balances greater than R3 000.
Repayment period:
- Once you have repaid 15% of your original loan, you can select to revolve it to the original loan amount. You can repeat this every time you have repaid 15% so, in effect, you could have a continuing line of credit for as long as you need it.
- Since your monthly repayment remains unchanged, the repayment period of the loan will be affected by one or more of the following:
- Whether you revolve on your RCP
- Deposits in excess of your minimum monthly installment
- Fluctuations in the interest rate
Example:
If none of the above applies to your RCP, it will take approximately 60 months to repay your RCP at an interest rate of 11%, while the same amount will take approximately 69 months to repay at an interest rate of 15%.
Type 2: The Way to Pay (WTP) Personal Loan explained.
A WTP is a once-off loan with a fixed installment that you repay over a relatively short term. It is an ideal facility for first-time borrowers and is often used for relatively small loan amounts.
Amount you could qualify for:
- You could qualify for a loan of between 1 and 2.5 times your gross monthly income.
- The amount you qualify for depends on your income and your credit risk. Your credit risk is determined by the information held with credit bureaus, the way you maintain any existing Standard Bank accounts and your personal circumstances, for example, stability of job and fixed home address.
- Personal details such as race and gender do not affect the assessment of risk.
- The minimum amount you may borrow is R3 500 and the maximum is R30 000.
Cost
Minimum monthly repayment:
- The minimum monthly repayments remain fixed for the lifetime of the loan at 1/20th or 1/30th of the original capital amount that you borrow.In other words, if you borrow R10 000 and your loan has a repayment factor of 1/20th, your monthly installment will be R10 000 / 20 = R500.
- The loan period that applies to your WTP is based on your credit risk.
The table below shows the minimum monthly repayment amounts for a sample of different loan amounts with the two repayment factors available on WTP.
| Loan Amount | 1/20th repayment | 1/30th repayment |
| R5,000 | R250 | R167 |
| R10,000 | R500 | R333 |
| R15,000 | R750 | R500 |
| R20,000 | R1,000 | R667 |
| R30,000 | R1,500 | R1,000 |
Info correct as of 10 July 2006
- When the Usury maximum interest rate changes, your minimum repayment amount remains unchanged while the loan period increases or decreases. This enables you to budget more effectively.
- If you have extra funds you may pay them into your loan at any time to reduce the outstanding capital loan amount. Additional payments made into your loan can be withdrawn again.
- The minimum installment is recovered monthly from your transaction account through a debit order.
Interest rate
- The interest rate you pay on your loan is based on your credit risk.
- Interest payable is calculated on your daily outstanding balance but charged to your account once a month.
- The interest rate is linked to the Usury maximum so that you receive the benefit when the Usury maximum rates decline and vice versa.
Repayment period
- Since your monthly repayment remains unchanged, the repayment period of the loan will be affected by:
- deposits in excess of the minimum monthly installment; or
- fluctuations in the interest rate.
Example:
If neither of the above applies to your WTP loan, a 1/20th repayment factor will take approximately 24 months to repay while one with a 1/30th repayment factor will take approximately 40 months to repay.