|
|
Personal loans
ABSA. Absa says it has introduced an initiation fee of R300 on all personal loans opened after June 1, but if you top up or pay off your loan early, you will not pay the “early settlement interest”.
Nedbank. Nedbank says that both before and after the NCA, initiation and monthly fees on personal loans differ according to the product.
First National Bank (FNB). FNB charges a one-off administration fee (described as a “documentation fee” on your statement) of R330 on personal loans. This amount has not changed since the introduction of the NCA.
Interest rates
In terms of the NCA, the maximum interest rate you can be charged for a personal loan is the repo rate multiplied by 2.2, plus 10 percentage points. Currently, this works out to a maximum of 30.9 percent.
ABSA. ABSA says before the NCA, it charged an interest rate of up to 19.5 percent on personal loans. From June 1, the interest rate is linked to the prime rate and based on your individual risk profile and credit history.
FNB. FNB says the average interest rate on an unsecured loan (one for which you do not have to provide security) of up to R50 000 was 22 percent prior to the NCA and it will remain the same post-NCA. The bank says its interest rates on these loans range from 13 percent to 30.9 percent.
Nedbank. Prior to the NCA, Nedbank offered unsecured or personal loans, which were based on your risk profile. Nedbank says the rates on its personal loans are now based on the prime rate and are more attractive, although tests to determine whether you can afford to repay the loan are more stringent.
In terms of the NCA, credit providers need to determine whether you can afford to repay credit or loans granted to you.
TO CONTACT THE NATIONAL CREDIT REGULATOR
Gabriel Davel is the National Credit Regulator
Toll share: 0860 627 627
Switchboard: 011 554 2600
Email: info@ncr.org.za
Fax: 011 805 4905
PO Box 2694, Houghton, 2041
Website: www.ncr.org.za
|
Posted on Friday, July 20, 2007 (Archive on Friday, August 31, 2007)
Posted by hayleym Contributed by hayleym
| | Return |
|
|
|