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Various financial institutions in South Africa offer agricultural loans to farmers. These loans give them the financial backing they need to improve the production of food in the country. You could imagine the situation in a country that doesn’t boast many farmers. What agric loans mean, how to apply for agricultural loans in South Africa, requirements, things you can do with them, etc. are all-inclusive in this article.

What are agric loans?

Agric loans are the loans farmers get that help them run their farms more efficiently. These types of loans usually come with low-interest rates. This is because farmers spend a lot of money to run. Traditional lenders (banks or financial institutions) and government agencies offer agric loans to farmers. Fortunately, the government’s agric loans come with low-interest rates and other subsidiaries that help farmers earn a profit.

Besides that, the government acknowledges the efforts of these farmers and their contributions to food security in South Africa. This is one reason they can get low-interest rates on their agric loans.

What are the requirements for agric loans in South Africa?

All financial institutions have requirements for various types of loans they offer. Agric loans also need borrowers to meet some requirements. However, the requirements for agric loans differ across financial institutions.

The following contains some requirements for agric loans in South Africa:

1. Be a South African citizen or have a permanent resident
2. Have a good credit record
3. Present a coherent business plan
4. Have collateral for the loan
5. Be capable to afford the repayments on the loan

Which bank is best for agriculture loans in South Africa?

 Land Bank

Land Bank has designed a credit line called Financing for Farming and Agri-Enterprises in order to assist South African farmers in their financial needs. With this loan, you can buy a farm or machinery that you will need to make it operational. You can visit the bank to start your loan application process

What are the things I can do with the farm loans?

Agric loans surely support farmers’ activities on their farms. There are some things you can use your agric loan to accomplish.

The following are what you can use your agric loan to accomplish:

1. Agric loans can help you purchase the land you need to build your farm
2. You can use it to cover the operating expenses of the farm
3. Pay marketing costs for effective sales of the farm products
4. Expand your current farm and invest more into it

How can I qualify for agric loans in South Africa?

Financial institutions have different criteria to qualify for their loan programs. This goes across all financial institutions in South Africa. And you must meet those criteria for you to get the loan.

The following are what you must meet to qualify for the agric loans in South Africa:

1. Have a good credit score. Before any lender will give you any form of loan, you must have a good credit score. Especially credit scores from 600 and above
2. The lender may also ask you to provide a business plan before considering you for an agricultural loan
3. As an applicant, they might assess your eligibility based on your business operations experience on a farm
4. You can get an agric loan if you own a farm and need emergency funding. Especially when you suffer a loss in production because of some circumstances beyond your control. They may grant you an emergency loan

How can I apply for agric loans in South Africa?

While applying for any loan you prefer, you must know the right procedures to take for your chosen lender. The procedures for loan applications vary across financial institutions.

The following are how you can apply for agric loans in South Africa:

1. Your local bank can offer you an agric loan. It’s easier for your current bank to give you agric loans than from a bank you don’t do business with.
2. Through direct and guaranteed loans for farmland from the government. There are government agencies that help farmers with cash to have profitable businesses.
3. There are some agric unions in South Africa. They act as a mouthpiece for farmers in South Africa. They are;

• Agric South Africa
• National African Farmers’ Union (NAFU)
• Agricultural and Farmers’ Union Service 

Belonging to any of the unions above will probably increase your chances of getting agric loans in South Africa.

Note: Ensure you understand the details of your agriculture loan before you sign. Make sure that there are no hidden costs in the agric loan.

How can I get an agricultural loans with bad credit?

Farmers who direly need loans and do not have a good credit score can get agric loans. A good credit score earns better interest rates. However, serious farmers can repay their loans and interests from their farm products.

The following are how you can get an agric loan with bad credit:

1. Through a government agric loan program. Sometimes they check your credit score but also look at your background in the farming industry.
2. Get a cosigner. Your cosigner has to possess a good credit score. They will hold your cosigner responsible if you cannot repay the loan.

Conclusion

Understanding the current economic situation world over. Farmers must make the right moves at the right time. These go down to making the right decisions. This is because what works for Mr. A might not work for Mr. B. As a farmer, you must not go for an agric loan because other farmers are going for it. Ensure you are financially fit to repay the agric loan before you get it. This is because failure to repay the loan will worsen your financial situation.

South Africa boasts a thriving fintech industry that benefits not just the country but the whole African continent. The country has long served as a significant trade investment and commercial center for the African continent’s international trade. Its two global cities, Johannesburg and Cape Town make it distinctive. Through the course of this article, we will be looking at six different fintech companies in South Africa.

What is Fintech South Africa 

• 

The term “fintech” refers to financial technology. Fintech businesses are those that seek to enhance and computerize the distribution and usage of financial services.

Fintechs are corporations, company owners, and normal people who employ specialized software and algorithms on computers and, increasingly, smartphones to help them manage their financial operations, procedures, and lifestyles.

Why does South Africa have an emerging fintech hub?

First, South Africa is part of the BRICS group, which also includes Brazil, Russia, India, and China. Each of the five countries has a sizable population and a developing economy. Despite current economic difficulties in some of them, the five countries nevertheless have enormous populations, developing markets, and prospects.

Despite recent setbacks, South Africa has a well-established ecosystem that encompasses not just its financial services industry but also a sizable market. For example, Johannesburg, South Africa’s largest city, is home to some of the continent’s most powerful banks and financial institutions, including Standard Bank Group, FirstRand, Absa Group, Nedbank Group, and Investec, making it a potential fintech magnet.

Indeed, several of the top 10 largest banks on the African continent by assets are South African.

South Africa’s second-biggest city, famed for its magnificent scenery and tourism, is also a major participant in the technology sector. The Western Cape, which includes Cape Town, is home to the bulk of the industry, accounting for 47 percent of all digital start-ups, with Gauteng, which includes Johannesburg, coming in second at 44 percent. Furthermore, Cape Town is home to 75% of the country’s venture capital agreements.

How many fintech companies are in South Africa?

In 2021, 154 fintech startups were located in South Africa. The country counted the highest number of such companies in the Africa region. Nigeria followed closely with 144 fintech, while 93 had headquarters in Kenya.

Fintech companies in South Africa

There are 154 FinTech startups in South Africa. Here is a list of the 7 most exciting ones;

Jumo   |Online marketplace for consumer & business loans and mobile-based banking channels

Jumo is an online marketplace for consumer & business loans and mobile-based banking channels. It offers lending products that enables entrepreneurs to avail themselves of loans & asset finance. The loan amount, life cycle, and repayment method can be configured based on the individual’s requirements. It offers an AI-powered technology stack that connects banks with traditionally inaccessible customers and enables banks to deploy loans, savings, and insurance services.

Company Overview

Founded Year

2015

Location

Cape Town (South Africa)

Funding

USD 305M [Funding Details]

Investors

P65 Ventures, Athena Capital, Vostok Emerging Finance and 13 Other Investors [Investor Details]

Yoco   |Payment processing solutions for businesses and merchants

Payment processing solutions for businesses and merchants. Its product includes NFC-enabled and hardware-based card machines, payment gateways, link-based payments, and more. It provides Yoco App, an app-based platform for managing sales and tracking performance. App is available on iOS and Android devices.

Company Overview

Founded Year

2015

Location

(South Africa)

Funding

USD 107M [Funding Details]

Investors

Futuregrowth, The Raba Partnership, Uncovered Fund and 9 Other Investors [Investor Details]

Ozow   |Payment processing solutions for businesses & merchants

Ozow offers payment processing solutions for businesses & merchants. It offers solutions such as payment gateways, QR-based payments, invoice payments, link-based payments, and more. It enables users to make online payments via credit/debit cards, bank transfers, and wallets. It features OzowPIN for payment confirmation in order for doing banking transactions.

Company Overview

Founded Year

2005

Location

Johannesburg (South Africa)

Funding

USD 48M [Funding Details]

Investors

Endeavor, Tencent, Kalon Venture Partners [Investor Details]

GetBucks   |Online platform for payday loans

Online platform for payday loans. It offers unsecured short-term loans that can be used for multiple purposes. Users must provide personal information and apply for the loan. Once approved, the funds are transferred to the registered bank account.

Company Overview

Founded Year

2003

Location

Pretoria (South Africa)

Funding

USD 25M [Funding Details]

Investors

NMB Bank, TLG Capital, ALCB Fund [Investor Details]

Adumo  |Provider of payment processing for businesses

Payment processing services for businesses are provided by this company. It provides a digital payment solution for shops, multinational corporations, entrepreneurs, and traders to accept online payments from clients through a variety of payment methods. 

It also offers working capital loans to help businesses sustain cash flow, as well as consumer interaction platforms, business, in-store consumer credit platforms, retail point of sale software and hardware, customer analytics, and electronic voucher distribution, among other things.

Company Overview

Founded Year

2009

Location

Bryanston (South Africa)

Funding

USD 15M [Funding Details]

Investors

Apis Partners, Crossfin, International Finance Corporation and 1 Other Investors [Investor Details]

Conclusion 

South Africa has long played a significant role on the African continent, and despite present issues, the country’s innovations and skills will hopefully continue to be seen in the future – both in fintech and in the broader economic development of the global economy.

Banks decline home loans for major reasons and we will be discussing them briefly in this article. The question ” why do banks decline home loans” has been lingering for a while now. Being turned down for a home loan is not an enjoyable experience. Especially when you’re in dire need of a proposed amount. Well, the good news is, this article answers the unpopular question ‘ why do banks decline home loans “. We can prevent this unfortunate situation from ever happening or repeating itself. 

Before applying for a loan, it is important to note some key factors to help you through the process. Knowing the few reasons banks might reject your loan puts you a step ahead of the process. Therefore, we have taken our time to put together a list of reasons banks reject home loans.

5 major reasons banks decline home loans in South Africa

Here are some of the reasons banks reject home loans and some of the solutions to the problems

1. Affordability

When it comes to loan approval, affordability is one of the most important factors. The National Credit Act measures affordability in terms of net disposable income. In order to determine affordability, the applicant’s gross income, net income and fixed monthly expenses will be considered. 

Legally, some financial institutions may decide not to grant a home loan in certain situations. One of the major situations is when the applicant’s monthly repayments will exceed one third of his or her net monthly income. When determining whether a loan can be afforded, financial institutions also consider applicants’ current debt repayments.

Solution

Be sure to check a few things before applying for a home loan. It is advisable to reduce current debt whenever possible. In addition, potential homeowners should be realistic in deciding what price range they can afford.

2. Debt Review / Under Administration

The National Credit Act prohibits financial institutions from extending credit to applicants under review. Violation of this principle is a serious offense and can result in harsh penalties for such institutions. By contravening these principles, financial institutions are guilty of reckless lending. 

If you are under debt review, banks and other credit institutions will definitely not consider your application for a home loan.

Solution

Before applying for a home loan, be sure to settle all your existing debts. Similarly, clearing your debt review records afterward is very important. If you have been under review, then there will be a waiting period of a year after rehabilitation. It is after this phase banks will assist you with a home loan.    

3. Credit History

The credit history of the applicant is also a major factor when it comes to assessing a home loan application. Your credit score will not only affect the approval of your home loan, but may also affect the deposit requirements and interest rate charges.

Solution

Homebuyers should know the contents of their credit reports. If you want a clean credit report, make sure you pay your bills on time regularly. You will have a better chance of obtaining a home loan if you do this.

Former defaulters on any debt repayments should also ensure they settle their accounts and clear their names with the creditor. For more information on having a judgment removed from your credit report, contact an attorney.

4. Loan to Value too High

You may still be turned down even if you have a great credit record and sufficient disposable income. This usually occurs when the market value of the property is less than the loan application. The financial institutions must ensure that they have sufficient security for the requested loan. This safeguards potential buyers from overpaying for the property.

Solution 

Avoid areas where property values are stagnant or declining. There is an option if you have a prime interest in a property whose market value is more than its selling price. Alternatively, you could increase the deposit, thus reducing the loan-to-value ratio.

When you do not have money saved up for a deposit, you can consider taking out a personal loan. Note that a personal loan would also count as another expense, and could also lower your affordability.

5. A botched application

This is the most basic, yet most common mistake loan applicants make. If the applicants cannot handle their loan applications correctly, they make this mistake. Leaving sections of the application unfinished, entering incorrect information, or failing to include the required documentation contributes to this mistake.

Solution

 It is also important to take out time to read on how to write a proper loan application before applying. A great application letter shows confidence and efficiency, and this might improve your chances.

How can I make sure my home loan is approved?

You can make sure your home loan is approved by following the following steps stated below. A house purchase is already stressful, and being unprepared increases the pressure. Why would you want to go through this? Become an expert on how to get a mortgage loan approved by thinking like a lender:

1. Know Your Credit Score

Pulling your credit report and ordering your credit score takes less than a minute. However, some future buyers never check their scores and credit history before submitting a home loan application, assuming their scores are high enough to qualify. 

Additionally to credit score requirements, late payments, missed payments, and other derogatory information can prevent approvals. Keep your credit score up to date by paying your bills on time, reducing your debt, and paying your bills on time. Maintaining a good credit score begins with cleaning up your credit history and fixing errors on your credit report.

2. Save Your Cash

If you are thinking of applying for a home loan in the near future, be prepared to cough up the cash. It is a surefire way to get your home loan application rejected if you walk into a lender’s office with no cash. Although mortgage lenders once approved zero-down mortgage loans, they now require a down payment.

3. Stay at Your Job

Maintaining contact with your employer throughout the home buying process is crucial. Changes in your employment or income status can halt or greatly delay the mortgage process.

Your home loan application is approved based on the information you provide. Lenders reevaluate your finances to determine if you still qualify for the loan when you quit your job or become self-employed.

4. Pay Down Debt and Avoid New Debt

You don’t need to have a zero balance on your credit cards to qualify for a mortgage loan. The less you owe your creditors, the better. Your debts determine if you can get a mortgage, as well as how much you can acquire from a lender. Before approving a mortgage, some lenders evaluate your debt-to-income ratio.

5. Know What You Can Afford

Lenders shouldn’t determine your mortgage loan amount. Lenders determine pre approval amounts based on your income and credit report, and they do not take into account how much you spend on daycare, insurance, groceries, or fuel.

Instead of buying a more expensive house just because your lender says you can, be smart and keep your housing expenses within your means.

4 quick ways to improve your credit score 

A lack of credit history can result in a poor credit score. If you don’t have a record of taking out loans and paying them back, you should open a small retail account or a cell phone contract. It is important to pay back these debts on time and in full each month (if not a bit extra).

You will need to settle your debt as quickly as possible if you have a low credit score due to an impaired credit record. The following tips can help you improve your credit score:

1. Pay your bills on time.
2. Settle and close accounts.
3. Pay more than the minimum instalments on existing debts.
4. Avoid applying for additional credit over this period.

Find a reputable service provider, understand your credit score and obtain a prequalification certificate before you start the home loan process. This will give you an idea of what you can afford and if you are eligible for a loan.

Conclusion

Don’t despair if your home loan application is denied. Remember, the lenders meet most loans with a hard no. Take advantage of your mistake by learning from it and submitting an even stronger application the next time around. This approach ensures progress. Continue to work hard, and you’ll eventually get the financing you or your home needs.

Vodacom Airtime Advance; Everything you need to know and more.

Communication is an integral part of human existence and smooth operation.As one of the leading telecommunication service providers in South Africa and beyond, Vodacom understands the importance of timely and quality communication. 

In order to serve their users better, especially in emergency situations, they have taken out time to include a key service. This service is the ‘airtime advance’ service. With this service, you now have access to airtime or data when you need it most. This equally means you can stay connected and continue making calls/using data services whenever you’re unable to buy recharge vouchers. 

Let’s take a quick look at what the Vodacom Airtime Advance entails.

What is an Airtime Advance?

An airtime advance is a self-service option that enables Vodacom customers to receive airtime/data in advance. And of course pay for it later through their next recharge. This also means customers can get access to emergency airtime/data when they need it the most. The airtime advance is just equivalent to a personal loan but can be spent only for communication.

Who is eligible for a Vodacom Airtime Advance?

In order to access the airtime advance service, two major criteria are;

You must;

• Be active on our network for at least 3 months
• Recharge a minimum total of at least R29 per month over 3 months
• To check if you qualify for Vodacom Airtime Advance, simply dial *135#. You can also read Airtime Advance terms and conditions to find out if you qualify for the service.

How does Vodacom Airtime Advance work?

When you’re out of airtime, you can get R20, R10 or R5 airtime or get data advances. All you have to do is dial *135# and choose option 10 or *135*082#. After this, select ‘Airtime & Transfers’. 

The airtime advance service comes with an access fee of R1.00. Repayment must be within 180 days. Failure to recharge and repay full amount within the duration temporarily barns you from using the service again. Default in repayment also decreases your credit limit as to the maximum amount you can borrow.  

Repaying your advance amount after enjoying the swift service shouldn’t be that much of a job. In fact, early repayment increases your advance limit and boosts system confidence.

Note; If you’re a Top Up/uChoose customer and don’t recharge before your next account invoice is generated, your outstanding amount is added to your next bill. The system automatically cancels your Airtime Advance amount.

How to apply for a Vodacom Airtime Advance?

These steps will lead you through accessing the Vodacom Airtime Advance;

• If you qualify for Airtime/Data Advance, dial *135# or *135*082# and then select ‘Airtime & Transfers’
• Select from the Airtime/Data Advance options as per your qualifying criteria.
• Reply ‘1’ to proceed.
• You will then see the confirmation message: “You have requested RXX Airtime/Data Advance. This will include an additional R1 access fee [to be deducted from your next recharge].”

Alternatively, you can visit www.vodacom.co.za select “Airtime Advance” and follow the prompts.

How much does the Airtime Advance cost?

If you make use of this service, and loan R10 from your Airtime Advance account, your balance will be R11.00. This will be R10.00 airtime + R1.00 access fee.

When you recharge your account with a R12.00 voucher, R11.00 will be deducted from the voucher. The R1.00 will be loaded as your airtime balance.

How do I contact Vodacom?

If you’d rather speak to someone in person, you can call the Vodacom Customer Care line, free from a Vodacom cell phone, on 082 135 – or visit one of the Vodacom stores in your area.

Conclusion

Being a leading telecommunication platform in the country and beyond, Vodacom has made this service available to benefit their customers. Especially customers who are caught up in the middle of an emergency. Customers can now access airtime and data to fulfill their purpose.

 

 

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Do you need money for unexpected expenses, a medical or business emergency or to fund a specific project? Sanlam can offer you a personal loan with a fixed rate according to needs and circumstances. They are a responsible credit provider and will never lend you more than you can comfortably afford to repay. Here’s a quick run-through of Sanlam loans and how they operate.

About Sanlam loans

Sanlam is a complex financial service group that has been in creating value for its stakeholders since 1918. With their headquarters in South Africa, they are in full operation across several selected global markets. Sanlam is classified as a domestic systemically important financial institution in South Africa. They contribute to the financial resilience and prosperity in all the markets they are present.

What are the requirements for applying for a Sanlam loans?.

Before applying for a Sanlam loan. It is important you have a couple of documents readily available. Some of these documents include;

1. A copy of your green barcode ID book or smart ID card.
2. Your bank account details (account into which your salary is paid)
3. A copy of your last 3 months’ consecutive payslips or bank statements.

Lastly, it is important to note that, to qualify for a loan, you must both live and work in South Africa. That being said, are you in need of a loan and have all these documents available? If yes, then consider yourself a step closer to getting your desired amount in no time.

What is the minimum/maximum amount of loan you can get from Sanlam Loan?

The maximum or minimum amount you can receive from a Sanlam loan is based on individual circumstances. Sanlam loan offers credit services with a minimum of R5000 and a maximum of R250000. They consider actors like credit score and financial history are during evaluation.

Interest rates and other fees.

Personal loans from Sanlam come with a few fees. Here are a few examples:

1. Initiation fee.

There is a maximum fee of R1207.50. Based on your credit profile, Sanlam determines how much you will pay for a loan.

2. Interest.

Your credit profile determines your interest rate. The interest rate on your loan will probably be higher if they determine you to be a high-risk borrower. Generally, interest rates range between 8.5% and 24.5%.

3. Monthly service fee.

 In addition, you will be charged R69 per month for service.

What are the requirements for applying for a Sanlam loan?.

Before applying it is important you have a couple of documents readily available. Some of these documents includes;

1. A copy of your green barcode ID book or smart ID card.
2. Your bank account details (account into which your salary is paid)
3. A copy of your last 3 months’ consecutive payslips or bank statements.

Lastly, it is important to note that, to qualify for a loan, you must both live and work in South Africa. That being said, are you in need of a loan and have all these documents available? If yes, then consider yourself a step closer to getting your desired amount in no time.

How do I know if I qualify for a loan?

Financial institutions look at five common requirements when evaluating loan applications.

1. Credit history and score. One of the most important factors a lender considers when evaluating a loan application is the applicant’s credit score. …
2. Income. …
3. Debt-to-income Ratio. …
4. Collateral. …
5. Origination Fee

How to apply for a Sanlam Loan?

Along with providing some of the best services and terms available, Sanlam is also making sure they stay in touch with the latest advancements in technology. As a result, the process of applying for a personal loan is quite fast and convenient. 

With a Sanlam personal loan, you don’t need to visit a branch or join a queue and you can apply online in the comfort of your home.

All you have to do is click here. You’ll be redirected to their loan application page, where you will find an easy-to-complete online application form. After submission, all that’s left is to wait for your response.

Sanlam loan interest rates

Sanlam loan has standby consultants ready to get on your application and start a credit check assessment immediately. They determine your interest rate and initiation fee according to your personal risk profile. 

Your loan repayment term can range from 24 to 72 months, and the interest rate is between 18.55% and 24.50% per annum (compounded monthly).

How long does it take for Sanlam to pay out pf?

A withdrawal claim is processed within 4.5 working days, with approx. 2000 claims processed per month. Contributions are invested immediately. 99% of contributions are invested within one day of receipt.

Important things to note before applying for a Sanlam loan

There are a few things to note before actually applying for a Sanlam loan. While some of these points are beneficial and helpful, others cannot be overlooked. Some of these points include;

1. You can tailor your repayment term to suit your budget (from 24 months to 6 years)
2. Repayments are fixed for your full loan term so that you can budget ahead easily
3. Sanlam will always take your current financial circumstances into consideration and never lend you more than you can comfortably afford to repay
4. Qualifying Sanlam Reality members could get up to 20% of their loan repayments back once they’ve made 12 consecutive repayments.

Advantages of Sanlam loans

When you choose Sanlam loan as your credit institution, you can take advantage of the following benefits:

1. A fixed-rate of interest

Once Sanlam determines your interest rate, it remains the same throughout your loan. This also ensures that your monthly repayments are fixed, making it easier to make financial plans.

2. The loans are unsecured

Sanlam loans don’t require you to put up your assets as security or collateral for your personal loan. That means that you won’t lose your property if you fail to make a payment.

3. Credit life insurance

Sanlam offers a personal loan protection plan that ensures your loan gets paid in full if you die, become disabled, or are retrenched.

4. Cash-back

If you join Sanlam Reality, you can get up to 20% of your loan repayments back once you have made 12 repayments non-stop.

5. You can apply for the loans online.

You do not need to leave your house since the application can be made online, at any time.

6. Sanlam loans are safe

DirectAxis manages Sanlam personal loans, and they’re a reputable, authorized, and registered credit provider in South Africa.

Sanlam loans contact details

021 764 3404

Contact Us

Call Centre	0861 02 03 04
Customer Care	021 764 3404
Debt Consolidation	0861 24 35 56
DirectAxis Loan SMS Number	43885

Conclusion

 Sanlam has a long history, but that doesn’t mean they dwell on the past. They have taken time to evolve regarding the technological advancement of financial systems. Now you have full access to a loan as you can fulfill their requirements with leaving your home. Pretty cool, isn’t it?

Technology as itself has paved the way for a lot of innovations, and the financial sector definitely is evolving around it. Credit cards remain one of the most advanced technological breakthroughs of all time. Owners of these cards now have access to funds in advance. With Standard bank, account holders can now enjoy the limitless benefits that come with owning a credit card.

Here’s an overview of all there is to know about Standard bank credit cards.

Overview of a Standard Bank Credit Card

The standard bank provides financial services with a rich history. For over 156 years, they have served and supported their clients, employees, and communities. They are present in 20 African countries and key global markets, which makes them unique because of their long-term efficiency and commitment to Africa.

Standard bank in their utmost will to serve, have included the credit card plan as one of the financial products they offer. Now, holders can borrow funds with the desire to pay for goods and services at merchants who accept credit cards for payment. The ease of use and simplicity of Standard bank credit cards allow cardholders to benefit from these features while using the cards.

Standard Bank Credit Card benefits and features.

The convenience that comes with a credit card is just one of many benefits consumers cannot overlook.

Some of these additional benefits and features include;

1. Secure Spending

These days, there are many financial threats flying around, so being able to bank with a financial institution with quality security is important. In accordance with their name, standard banks maintain the financial security of their citizens at all times.

2. Worldwide Acceptability

In addition to accepting credit cards at home, business owners also accept them abroad. In any part of the world, you can always use your MasterCard or Visa credit card to pay for goods and services. Additionally, if it’s really urgent, you can withdraw cash from ATMs.

3. Build up your credit record

When you apply for a loan, banks and other credit institutions always examine your credit history. The quickest way to establish a good credit record is to utilize and pay off credit cards on time. Faster approval for loans and possibly even lower interest rates are assured with a good credit score.

4. Easy Payment Solution

The budget facility on a credit card enables holders to pay off enormous expenses. Expenses like an unexpected medical emergency, a new fridge, or a missed flight, in monthly installments.

5. Convenience factor

Having a Standard Bank Credit Card comes with a number of advantages, in addition to convenience. Holders of credit cards have access to money instantly, without having to carry around cash.

6. Collect Ucount Rewards Points

With every purchase or payment you make with a Standard Bank Credit Card, you earn Ucount points. You can use these reward points with a retail partner like Caltex.

7. Free Travel Insurance

Payment of overseas flights gives Standard Bank Credit Cardholders access to free basic travel insurance.

Types of Standard Bank Credit Cards 

Standard Bank has designed its credit card system to fit the needs of all its customers, irrespective of their financial status. There are now several types of credit cards available, allowing users to select the one that matches their needs best. Check out the different credit cards Standard Bank offers;

Interest rate and other fees 

Standard banks charge interest on credit cards according to the credit card plan the holder selects. As a result, the interest rate you’ll be charged depends on the type of credit card you choose.

Depending on the Credit Card, they charge between R40 and R264 per month. According to the NCA regulations, interest rates are individualized from a minimum of 7% (prime) to a maximum of 18% (Repo rate + 14%). The minimum monthly repayment on your credit card is 3% of the outstanding balance. R180 (VAT included) will be charged as an upfront, one-time initiation fee. 

How does Standard Bank credit card budget work?

Using your budget facility

Credit cards are all about choice – that’s why you have both straight and budget facilities on the same card. When you use your budget for purchases over R 200, you can choose to repay the amount within six months or over 60 months.

How to apply for a Standard Bank Credit Card

Standard bank utilizes two types of application methods. The first is the offline application process and the second is the online application process. The offline application process, as its name implies, requires the applicant to physically visit the branch of a financial institution. The process also requires contacting the standard bank standby customer service at 0860 500 000. 

Online application doesn’t require a physical appearance.  This application process involves either downloading the financial provider’s app, visiting their websites, or following the instruction. 

The online application process can be executed from any location. Standard bank employs this method of application because of the advancement in technology.

How can I get instant loan from Standard Bank?

How to get your online loan via Internet Banking:

1. Visit online banking. standard bank.co.za on your desktop.
2. Click the “Borrow” button.
3. Follow the instructions.
4. Ka-ching! The money will be deposited into your account.

How do I pay my standard bank credit card?

Paying your debts on time is extremely important to maintain a good credit score, which is important to us as well as to you, our valued customer. Therefore, they continue to introduce new ways for repayments that are as convenient and as effortless as possible

1. Sign in to your Internet Banking profile.
2. Click on the ‘Make a promise to pay’ button on the product tile.
3. A summary of the account status is shown, along with the following information: amount in arrears, minimum payment amount, and outstanding balance.

How can I increase my standard bank credit card limit?

Would you like to increase the credit limit on your credit card so you can make a large purchase? It is possible to request an increase within six months of receiving your card. What can you do with it? You can increase your limit by calling 0860 000 000 or visiting your nearest branch.

Conclusion 

Standard bank is set to achieve some significant goals. One of these goals is optimizing their service and making banking operations very convenient for their customers. The credit card product is one of the major mechanisms they will use to achieve this purpose.

The South African economy is home to more than 2.5 million small and medium-sized enterprises (SMEs), however, access to funding is a major concern for many entrepreneurs. Business loans in South Africa offer a way to finance both new and existing businesses. Obtainable through several lenders, including banks and specialized loan companies, this type of loan may seem like a convenient way to start your business. 

In reality, getting a loan can be difficult, let alone getting approved for one.

What is a business loan?

A business loan is the type of financing you can get to meet the urgent needs of your business. Some of these needs could be; to expand your existing business, to buy machinery, to boost production, etc.

How do I qualify for a business loan in South Africa

First, you must understand how you can qualify for a business loan before getting it. There are many types of loans, and there are also varieties of ways you can get these loans.

In South Africa, getting a business loan could be very easy for you once you prepare appropriately for it. There could be differences in what could qualify you for a business loan across all financial institutions in South Africa.

For business loans, you must meet the following requirements:

1. You should have a very good credit score, at least from 650 and above
2. Prepare your financial statements and management accounts
3. Have a business plans
4. Your financial statements
5. Provide your tax records
6. Your financial forecasts
7. Provide a collateral

How do business loan types work in South Africa

The simplest way to understand how business loans work is to answer based on the type of loan you’re taking out. Despite the fact that business loans are constantly changing along with the industries they comprise, we’ll attempt to provide a comprehensive answer to the question, “How do business loans work in South Africa?”By looking at different types of business loans available in South Africa.

South Africa offers the following types of business loans:

1. Debtors factoring and invoice discounting

A debtor finance is a type of financing in which a financial institution purchases or lends funds against a company’s debtor book. Basically, a “debtors book” is just a collection of all your receivable invoices.  Factoring, invoice financing, and invoice discounting are other names. 

Businesses can use it as a tool to improve their cash flow and grow their businesses by unlocking value within their businesses. By factoring in debtors, a business can offer longer payment terms to its corporate customers, allowing it to take on more or larger projects. 

Alternatively, a business can use debtors factoring to overcome cash flow issues if they are struggling to stay afloat while they wait for their customers to pay.                                                                                    

2. Traditional short-term business loans

Businesses in South Africa are offered a wide range of loans by the country’s major banks. Banking institutions can provide short- and long-term loans as well as specialized loans for equipment and vehicles. However, applying for a business loan through a bank can take a long time – about two months on average. 

If you are wondering if you can apply online for short-term loans through your bank’s website, the answer is probably no. An application to a bank generally involves a lengthy and rigorous application process. An application must be filled out and submitted with supporting documentation and information. The majority of banks have requirements for business plans, tax records, and even financial forecasts.

Once you have submitted all your documentation, the process has just begun. In most cases, you will have to wait around two months before finding out whether your application has been approved.

In the event that your application is successful, you will have to wait for a further period of time before you receive your funding. Business owners who need a short-term loan to solve an immediate cash flow problem will find this situation unacceptable.

3. Bank overdrafts

Overdrafts allow business bank accounts to go negative up to an approved limit. Business overdraft limits are generally lower than those of other types of financing. Some banks will impose two kinds of overdraft limits: a lower “soft” overdraft limit as well as a higher “hard” overdraft limit. The soft limit can be exceeded, but you will be charged additional interest rates or incur additional charges. Hard limits on the other hand can never be exceeded.

A long track record of trading is required to qualify for a bank overdraft. An overdraft is usually granted only after you have had a history of trading for at least two years. Unlike bank loans, bank overdrafts generally do not have a fixed repayment date, and interest-only must be paid every month. 

You’ll also have to pay account fees or facility fees just to keep the overdraft open, even if you don’t use it. It is important to consider the additional charges that may not be included in the advertised interest rate. Absa overdraft can be a great option for this type of credit.

4. Business lines of credit

A business line of credit is a flexible form of small business loan. This kind of flexibility is not available with a regular business loan. There is a limit to how much you can borrow with a business line of credit in South Africa. Then pay interest that applies to the certain amount you borrow. After that, you repay the funds according to your wishes and never exceed your credit limit. 

The credit line of a business is subject to credit review and is renewable annually. Additionally, you can borrow funds as much as your lender permits. The payment is revolving, just like a credit card.

5. Merchant cash advance

This is a new type of lending available in South Africa for retail and restaurant businesses. Those who accept credit card payments from customers. The amount of the loan is calculated based on the average monthly turnover of the business. Repayment periods range between six and twelve months. 

The repayments can, however, vary depending on the business’s monthly credit card sales. Therefore, if a business has a good month, it repays a bit more than normal, whereas, during quieter months, it pays less. Daily repayments make it difficult to keep track of and manage repaid amounts and outstanding balances. 

6. Business credit cards

Consumer credit cards work similarly to business credit cards. However, the chances of approval are low. Compared to other types of business financing, credit card limits are typically the lowest. Additionally, business credit cards offer great benefits and rewards. As an example, the FNB ebucks loyalty program offers businesses points every time they shop at select stores and fuel stations

A business’s performance and credit score are critical factors in determining how much credit your business will be approved for. Credit cards are also a good way to build your business credit score and ability to get other types of financing.

Which banks offer business loans in South Africa

Fincheck

1. Fincheck is a provider of a live and independent way of comparing and applying for finance from more than 30 South African banks, lenders, and insurers.
2. Who they serve: Business owners seeking finance in South Africa.
3. Amount: R20,000 – R72 million

Lulalend

1. They offer instant funding decisions on applications based on proprietary scoring technology.
2. The company serves South African businesses from all industries with annual revenue of over R500,000.
3. In the range of R20,000 to R1 million

Fundrr

1.  The company developed an automated credit model that analyzes close to 100 data points in order to provide a complete picture of growth opportunities. This produces a Fundrr score.
2. Who they serve: At least a 12-month track record, with a minimum of R1 million turnover or asset value.
3. Amount: R20,000 – R500,000.

Merchant Capital

1. Provides flexible repayment terms for merchant cash advances to retail businesses.
2. Typical client: Retail business owner with an average of over R30,000 in credit and debit card sales and has been in business for at least one year.
3. Qualification: Up to 100% of a business’s average monthly credit and debit card turnover.

Bright on Capital

1. They provide affordable working capital financing to emerging small supplier businesses with sustainable growth prospects through their peer-to-peer lending platform.
2. They cater to small businesses that are at least 12 months old, who supply organizations or government entities with creditworthiness, and who expect to generate R1 million or more in annual revenue.
3. To execute on procurement opportunities sourced from these qualifying large entities, small businesses can access revolving working capital facilities of up to R1 million.

Where can I borrow money to start a business in South Africa?

Where to go to fund your start-up business?

1. National Empowerment Fund (NEF)
2. Industrial Development Corporation (IDC)
3. Small Enterprise Finance Agency (SEFA)
4. Isivande Women’s Fund (IWF)
5. Khula SME Fund.
6. Incubation Support Programme (ISP)
7. National Youth Development Agency (NYDA)
8. Technology Innovation Agency (TIA)

What credit score is needed for a business loan

There is no universal requirement for minimum credit scores for business loans. Additionally, some loans do not require a credit check. In most cases, however, lenders are going to consider your credit score when deciding whether to work with you or not.

Simply put, the higher your personal credit score, the easier it will be to get a business loan. Moreover, your credit score determines not only whether you qualify for a given business loan but also the terms that your loan will have, including the loan amount, the APR, and the repayment schedule.

What are the sources of business loans in South Africa?

1. Bank finance

Banks give business loans to businesses, although it could take some of them months to complete their processes. They will also require collateral for the business loan.

2. Government grant

The government grant is interest-free, and you don’t need to pay back the grant. Not all businesses get the government grant, this is because of their strict selection criteria. The government monitors how businesses spend the grant.

3. Venturing Capital (VC)

Venturing capital organizations invest in businesses, by so doing such businesses have the immediate cash flow to get things done. Venture capital organizations invest money in businesses in return for shares.

Most times, early-stage businesses that will sacrifice equity and control go for venture capital finance. This is because the venture capital organization would want to partake in running the business from the board level.

4. Peer to peer (P2P) lending

In this source of a business loan in South Africa, there is usually no need for any financial institution. This new form of funding just involves people who need money and other people who need to lend money. Here, some firms prefer to get funds from their peers than from any business financing company of any form.

5. Factoring

Factoring is a way of diversifying your business funding portfolio. They use this form of financing all over the world because it gives businesses finance that grows with turnover. Factoring gives businesses working capital against their outstanding invoices. The factoring company would purchase your account receivables and cater to your debtors’ ledger when you partner with them.

Many businesses choose to factor over bank loans and overdrafts because:

1. You wouldn’t give up equity or control
2. Customers’ creditworthiness is in focus, not your own creditworthiness
3. Finance grows with turnover

How long will I wait for a Business loan

In South Africa, business loans are not granted quickly by lenders. Generally, you can expect to wait for up to two months for your application to be processed. If you are approved, you will receive the funds within another month or within the agreed-upon time frame.

Consequently, the time it takes for a business owner to obtain a loan can be up to three months, which may make it difficult for them to implement their plans. Many quick loans are available, but they won’t offer large sums of money and must be repaid quickly.

How do I fund a business with no money?

How To Start A Business When You Have Literally No Money

1. Ask yourself what you can do and get for free. …
2. Build up six months’ worth of savings for expenses. …
3. Ask your friends and family for extra funds. …
4. Apply for a small business loan when you need extra cash. …
5. Look to small business grants and local funding opportunities.

Conclusion

Businesses in South Africa usually face uphill tasks from time to time. And these tasks most times require an enormous amount of money to get things done. However, a business loan is always an option they could explore to avoid a breakdown of workflow in their business. Early-stage businesses would really need a business loan to gain aground in the competitive market. The business loans offer finance and cash flows for businesses that need them.