Since its first department store opened in 1931, Woolworths has been a favourite of people, because they have a good reputation for financial services
Since its first department store opened in 1931, Woolworths has been a favourite of people, because they have a good reputation for financial services that they offer. Woolworths offer personal loans from R2000 to R 75000, which can be repaid over 1 to 5 years.
As a typical example, if customers borrow R10,000 over 60 months at an interest rate of 20.50 per cent, their monthly repayment will be R267.73, with R16,06380 total repayable. According to the national credit act, the variable interest rate is linked to the repo rate.
Woolworths offer personal loans either for a fixed term or for revolving terms. As the name suggests, clients are repaying a set amount each month with a fixed-term loan until the loan is repaid. A rotating loan offers flexible repayments and the option to reuse any of the income. People can pay back the loan, which may be very useful if the customers require cash quickly. There is also the option to increase the loan amount. Additional payments and early settlement of the personal loans will not incur fees. There is a monthly service fee of up to R69.00 and for the revolving personal loans an initiation fee of up to R1,207.50 .
How do personal loans work?
Personal loans are money borrowed from a bank, credit union or online lender that you pay back in regular fixed payments or instalments, generally for two to seven years. Generally you don’t need to guarantee any protection or collateral when taking advantage of a personal loans and your lender allows you the freedom to use the funds as required. Personal lending is issued as a lump sum deposited into your bank account. In most cases, you’re required to repay the loan at a fixed interest rate over a fixed period of time. They also come with a fixed monthly payment that you can agree to in advance, making it much easier to budget your loan. It can act as your solution to handle your travel and wedding costs, as well as medical emergency expenses, home renovation, debt consolidation, and others.
How to apply for a personal loan?
Customers can apply for a personal loan online. The application will take about 10 minutes to complete, and the cash will be in your bank account within 48 hours of approval.
Individual applicants must meet the following criteria to be eligible for the Woolworths-
- Have a monthly income of at least R2000
- Aged at least 18 years
- Have their bank account
- Three months of bank statements or payslips
- Hold a South African ID
- Hold a south African physical address
- Hold a South African telephone number
Direct debit repayments of the loan are compulsory. More sales can be made at any Woolworths shop, by exchanging electronic equipment or in any Absa bank branch. Keep in mind that applicants can take out free credit insurance. This shall cover the entire amount of the loan to be repaid in the event of death, disability or critical illness. In the case of layoff applicants, twelve-month instalments shall be paid.
Benefits of personal loans
Nevertheless, personal lending is gaining the popularity for many reasons. They might even be good for you. Here’s a look at a personal loan’s varied benefits-
- Guide or support your credit score
- Know when you will pay off your loan
- Borrow money without risking your assets
- Pay for planned expenses with a lower interest rate
- Consolidate multiple debts
If you need business loans for short period of time you can check out the short term loans for businesses.
Short term loans for businesses
Often, your company could come to a standstill because you need some cash. This can be a challenge and can prevent the growth of your business. This is why you can make use of short-term business loans to meet urgent cash crunch.
So, what is a short -term loans for businesses?
A short term loans for businesses is a loan made available from either a bank or a financial institution for a period of several months to one year to meet your immediate cash needs. These are mostly free from collateral, depending on the lender and the terms of the loan.
What are the types of short term loans for businesses?
There are short term loans for businesses that can fulfill your short term needs for the business.
- Working capital loans
- Machinery and equipment loans
- Loans against securities
- Credit card loans
- Flexible business loans
How long – term business loans work?
Long-term business loans usually refer to investments with a repayment period of a minimum of one year. A long term loan has the most extended period of repayment, spanning one to 25 years. In contrast, a short-term loan has a repayment period of only three to 18 months. And you might hear about a medium-term loan that falls somewhere in between, with terms ranging from one to five years for repayments.
What are medium-term loans?
Industrial companies and service providers with major impacts on national economic growth can opt for medium term business loans. Potential beneficiaries must have at least 25,000 euros in cash and savings. The loans are intended to fund professional equipment needed for the manufacturing or service-providing operations, including health or environmental protection equipment, as well as property for professional use only. The duration of investment is up to 5 years.
Conclusion
In this article, we talked about the entire guide on Woolworths offering personal loans, including how personal loans work, how to apply for a personal loan, and much more. This loan can be an excellent option for you if you need a loan between R2,000 and R75,000. These loans can be repaid over a period of up to 1 to 5 years and offer either fixed-term loans are also available online, and customers can also apply for a loan online.
We hope that you must have been satisfied with what we have explained about Woolworth’s loan.
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