Have you reached the point in your life where work is just a distant memory, the kids are all grown up, and you are enjoying life as a leisurely person. It is still possible during your retirement years to find yourself in financial trouble, despite not having the stresses of work. Loans for pensioners in South Africa have been made available to alleviate the financial needs that might occur in the life of these individuals.
Through the course of this article, you will get to understand all there is to know about the processes involved in obtaining a loan as a pensioner.
How do loans for pensioners work
As a retiree or pensioner, your options for loans may be limited since it’s hard to prove to a lender that you are able to make repayments. This is because many retirees may not have a regular income and may live from pension to pension (which, at best, just covers their daily expenses).
As a pensioner, it is usually much easier to prove you can make repayments if you have significant funds sitting in your bank account.
Loan options for pensioners
While there may be obstacles for pensioners when it comes to securing a personal loan, rest assured there are still options to help you out when things get a little tight.
1. Personal loan with a current provider
Having an account with a financial institution for a long time pays off. Over time they become familiar with your financial history and are more likely to offer you a personal loan than if you were to apply from scratch with a new lender.
2. Reverse mortgage Loan
Typically, these loans are taken out by retirees and pensioners who have good assets but low cash flow. This form of loan allows people from the age of 60 to reverse the equity in their property into cash. The loan does not require an income or repayment, however, there is an interest charge and other fees, like any personal loan.
Borrowers repay their debt when they sell their property, move into a retirement community or die.
Where to get a pensioners loan in South Africa
Though it might be a little difficult to obtain a pensioners loan in South Africa, African bank has taken necessary step to ensure prospective applicants who are pensioners are not entirely left of their credit benefit.
A pensioner interested in obtaining a loan can take advantage of incredible loan options from African Bank. This bank understands how hard it is to get a loan from a banking company. Therefore, if you are in that situation, I am sure this article will benefit you greatly.
The African Bank is one of the very few banks that offer loan programs to pensioners. More than 30 cities have been added to its list of operations.
How does African bank loans for pensioners work
Pensioners may apply for an unsecured Personal Loan from African Bank. What does this mean? When pensioners submit proof of their income or pension, the bank is willing to grant a program. Therefore, these clients do not need to select any asset as collateral for the loan.
As one of the main advantages of this type of program, pensioners can get loans instantly without any further complications as they would with another bank as their income is seen as a salary. Pensioners with low incomes and those with high incomes will both qualify as long as proof of their income is provided.
Furthermore, African Bank provides very flexible financing terms, so even though some banks are reluctant to lend to pensioners due to their age, they do not have to worry about repaying the loan.
Here is a brief list of their benefits right now:
- Retirement pensioners can obtain amounts that range from R 500 to R 200 000
- Refinancing periods for pensioners range from 3 to 72 months
- As installation payments typically have a fixed amount, they are not subject to random fluctuation
- Pensioners can always speak to a bank representative by calling the customer service phone number (listed below in the contact section).
- Pensioners won’t have to worry about paying fees each month because they’ll be deducted from their bank account automatically
Requirements for African bank loans for pensioners in South Africa
As for the eligibility requirements these types of clients have to meet, they are the same as the ones for the other types of clients. Specifically, they must submit the following documents:
- ID card
- proof of residence in the country
- recent payslips and bank statements.
- A proof of their income also plays an important role at the time of deciding if the citizen is eligible for the loan.
Therefore, it is extremely important that pensioners bring forward their pension letters so that they can demonstrate their status as pensioners.
Furthermore, the bank will examine in detail whether you have any debts to pay at the time of making the application. Therefore, be sure not to be under any debt that would affect your ability to repay the loan.
How can pensioners get in touch with African Bank?
1. In person
Their offices are located in the Absa Pretoria Building at 1115 Burnette Street in Hatfield Plaza on the ground floor. You can call this office at 27 12 325 0236. It’s open Monday through Friday from 8:30 in the morning to 5 in the afternoon.
There is another physical branch of the bank in Cape Town, so please go to 84 Main Road, which is located in the area of Mowbray, where a bank consultant can assist you. If you wish to contact them, their phone number is 27 21 689 5660. During the weekdays, it is open from 8:30 am to 5 pm.
2. By phone
If you have any inquiries or questions about Personal Loans that are related to their requirements, features, or documentation, please contact the bank’s representatives at 0861 111 011. It is a free telephone number available to all bank customers.
3. Online
Access the bank’s website from your computer and get information about the loan and apply for the program from there. in an easy and quick way. There you will also find details about insurances and other products that might interest you as well. Online loans have become one of the most convenient mediums of applying for a loan these days.
Conclusion
Obtaining a Personal Loan in South Africa as a pensioner is possible with the financial assistance of African Bank, since the bank offers its personal loans to any customer who needs them. Thus, if you need financial assistance, you do not have to worry about your age or working conditions.