A Revolving Loan is a type of loan that is usually forgotten or never heard of by many people. Often when people find themselves in a difficult financial situation, they turn to loans to help them pay off their debt or just to ease the financial burden. An Fnb revolving loan is one of the best option for prospective applicants looking to take out a revolving loan.
Revolving loans are just as important as any other loan type, so let’s get right to the point and find out exactly what it means and how it works.
What is a Revolving loan?
Financial institutions use revolving loans as means of extending credit to borrowers, giving them the opportunity to withdraw funds, repay them, and withdraw money again. The ease of re-borrowing and repayment features of revolving loans makes them a flexible financing solution.
Key Importance of Revolving Loan
Thought there are numerous importance on revolving loan to both personal individuals and businesses, the following are the major importance;
- Revolving loan facilities offer borrowers a great deal of flexibility when it comes to repayments and re-borrowing.
- The interest rate on a revolving loan facility is typically that of a variable line of credit, rather than a fixed rate.
- Businesses can use a revolving loan or line of credit to fund working capital requirements and continue operations, such as paying payrolls..
- When the customer pays down an open balance on the revolving credit, that money is once again available for use, minus the interest charges and any fees.
- When the customer pays down an open balance on the revolving credit, that money is once again available for use, minus the interest charges and any fees.
How Does an FNB Revolving Line of Credit Work?
When a borrower has been approved for revolving credit, the bank or financial institution establishes a set credit limit that the borrower can use either fully or partially over and over again, as needed.
Generally, a borrower pays interest monthly on his or her current balance. Due to the convenience and flexibility of revolving credit, the interest rate on this type of loan is typically higher than on traditional installment loans. Revolving credit has variable interest rates, and those interest rates may be adjusted.
What Fnb Revolving Loan offers you:
- Fixed monthly repayments – making it easier for you to budget
- The loan will be available to you for as long as you need it
- The ability to access the funds at any time, provided you have paid up to 15% of the Revolving Loan
- Optional Debt Protection available in case of your death, permanent disability, retrenchment and temporary disability.
What documents do you need to apply
- Green bar-coded South African ID Book
- Proof of residence
- Spousal consent (if married in community of property)
- Depending on employment type, we may require further documentation (i.e. 3 month’s payslips or bank statements, etc.)
Fnb Revolving Loan Debt Protection
With FNB’s Debt Protection Plan, you and your family can make repayments on Revolving Loans (credit facilities) after you pass away or become disabled. In the event of temporary disability or retrenchment, FNB will provide help with your monthly installments on the covered facilities.
Advantages of FNB Revolving Loan
Just like every other form of loan, obtaining a revolving loan with FNB has the following benefits;
- Gain access to these funds once you have repaid 15% of the Revolving Loan
- Set up monthly debit orders to repay the loan
- Only pay a minimal monthly fee when you use the loan
- Transfer funds from your Revolving Loan directly into your personal checking account through;
- ATMs
- Mobile banking
- Telephone banking
- Online banking
- FNB Mobile Banking App.
Conclusion
The flexibility that comes with taking a revolving loan with FNB cannot be overemphasized. This form of loan, unlike other types of loan permits an account holder to borrow money repeatedly up to a set amount limit. The prospective borrower repaying a portion of the current balance due in regular payments.