Obtaining capital is often a challenge faced by almost everyone when they want to open a small business. In that case, many people share a fairly basic view of where to go when faced with such a challenge; that is going to the bank. Banks are places where people make investments like term deposits, sign up for a credit card but when a person who has an objective of opening a business goes to the bank, they are likely looking for finance)
In this article, we will look at the necessary steps and requirements needed for one to get a short term personal loan from a bank and we will useone of South Africa’s banks, African Bankas a guideline. African Bank Limited (ABL), commonly referred to as African Bank, is a commercial bank which is a subsidiary of its holding company called African Bank Investments Limited.
In order to qualify for an African Bank personal loan, one has to be 18 years or older and the following documents should accompany the applicant:
- ID book
- Latest original payslip
- One month’s bank statement reflecting your salary deposit or savings book and
- Proof of residence
The applicant’s proof of residence can be in form of a latest utility bill, municipal account, retailer account, document from an insurance company, payslip, letter from traditional authority, ward counsellor or a declaration from a landlord and affidavit from a person living with you. Meanwhile, only documents that are less than three months old will be accepted.
Obtaining a loan comes with benefits for applicants who meet the necessary requirements. At African Bank, the applicant is offered the following benefits:
- Loans that suits a wide range of your needs from R500 to R150 000
- Flexible repayments periods between 3 to 60 months
- Consistency as your repayment instalments are fixed
- Convenient repayment via debit order from the applicant’s bank account
African Bank’s personal loans have a credit life insurance package which covers the following events, chief among them death, permanent and temporary disability, retrenchment, compulsory unpaid leave within 30 days from the start of the policy.
The bank has on its website the informative African Bank credit and personal loan brochures which are available in English, SeSotho and Zulu languages.