Besides the highest of high rollers, most of us will need some extra cash at some point, either to tide us over until better days, or to help us reach our goals.
Be it to ease financial hardships, pay for renovations, or even bankroll a dream wedding, a personal loan offers flexibility; you can use it to pay for almost anything. Along with comparatively low interest rates and fixed payments over a set repayment schedule, this makes it a great financial solution – if managed responsibly. The below tips will help you do just that:
Crunch the numbers
A personal loan is ideal for paying for those larger purchases, such as an entertainment centre or an educational course, but it’s important to be sure you can afford the repayments. Draw up a budget where you look at all your monthly and annual expenses, and work out how much of your disposable income you can afford to spend on your monthly repayments.
There are different interest rates, repayment terms and loan structures available, so find the right one for you.
It may be tempting to lie about your employment status, income or affordability on your loan application to get it approved, but this could backfire: in reality, you’ll limit your ability to pay back your loan in the timeframe specified, which could get you further into debt.
The most important part of having a personal loan is being able to afford to pay it off. This involves a fair amount of discipline. One easy way to do this is to set up a direct debit to pay off a portion of your personal loan each month.
Choose the right bank
When it comes to choosing the right bank for your personal loan, there are quite a few things to keep in mind: While you should certainly consider the interest rates, you should also look at the bank’s reliability, ease of use, and repayment options.
Standard Bank’s personal loan offers great benefits from a trusted financial institution that’s been around for more than a century. The money is transferred into your account and is available immediately once the loan is approved, so there are no lengthy waiting period. What’s more, the term and repayments are fixed, even if the interest rate changes, which means you know exactly how much you have to repay each month. This will help you budget more effectively.
Visit our website to find out how much you qualify for on a new or existing loan. You can also use our calculator to learn how much your repayments will be.