Personal loans are a popular financial product in South Africa, providing an accessible way for individuals to access credit. They can be used for a variety of purposes, from financing large purchases such as cars and home renovations to consolidating existing debts. With the right information and advice, personal loans can provide great opportunities for consumers looking to improve their finances. This article will explore the various aspects of personal loan products available in South Africa, offering guidance on how best to use them responsibly.
The process of applying for a personal loan is fairly straightforward but it pays to take time researching which lender offers the most suitable product at the lowest rate. Understanding interest rates, repayment terms and other features associated with each loan option helps ensure that customers make informed decisions when entering into any agreement. It is also important to consider additional costs associated with taking out a loan such as application fees and insurance premiums, so that budgeting accurately becomes easier.
Finally, borrowers should be aware of their rights and responsibilities when taking out a personal loan; this includes understanding items like early termination penalties or cooling-off periods before applicants are bound by contracts they agree to sign. By being mindful of these regulations set out by the National Credit Regulator (NCR) customers can avoid falling prey to irresponsible lending practices and enjoy peace of mind when accessing credit through responsible lenders.
Overview Of Personal Loans In South Africa
South Africa is an increasingly popular destination for personal loan applications. With a large and growing banking sector, there are many options available to South African consumers seeking financial assistance through a personal loan. These loans can be applied for online or in-person at banks and other financial institutions, with terms and conditions that vary from lender to lender.
It is important to understand the initiation fee associated with taking out a personal loan in South Africa, as this will impact how much you ultimately end up paying back on your agreed repayment schedule. Different lenders may also set different qualifications for approval of a loan, so it’s essential to shop around before submitting an application. Make sure to read all the small print carefully when assessing each potential offer – any hidden costs or restrictions could make one particular offer less desirable than another.
When researching personal loans in South Africa consider comparing interest rates between companies based on the amount and duration of the loan requested. Other factors such as fees, penalties, grace periods and minimum payments should also be taken into consideration when making your decision. Understanding these elements can help you select the right provider who meets your needs while staying within your budget. To ensure an informed decision is made, fully review all relevant terms and conditions before signing any agreement documents.
Qualifying Criteria When You Apply For A Personal Loan
Qualifying criteria for a personal loan in South Africa vary from lender to lender, but there are certain common requirements that must be met. According to the National Credit Regulator (NCR), 76% of consumers who applied for credit between 2014 and 2015 were approved. This statistic demonstrates how accessible personal loans can be in South Africa. When applying for a personal loan, you should consider the following qualifications:
- A valid ID book or card
- An up-to-date credit score
- Employment status and income level – evidence of employment may need to be provided by way of payslips
- Loan amount requested – most lenders have an upper limit on their loan amounts
- Registered credit provider – all potential borrowers must register with a registered credit provider before they apply for a personal loan
In addition, some lenders might require applicants to pay a once off initiation fee. It is important to check the exact charges associated with this process when taking out a personal loan as it will affect the total cost of your borrowing. To ensure that you choose the right type of financial product for your needs and budget, it is essential that you compare different lenders offering similar products. After understanding what is required to qualify for a personal loan, one should look into interest rates and fees associated with such products.
Interest Rates And Fees On Personal Loans
When considering any type of loan, it is important to understand the associated interest rates and fees. Personal loans in South Africa usually come with fixed or variable interest rate options. A fixed-rate personal loan means that the rate will not change over the life of the loan and may offer more predictability when planning your budget. On the other hand, a variable rate can be advantageous if you are expecting an increase in value over time. Additionally, there may be a service fee charged for processing your application and this should also be taken into consideration.
In some cases, lenders may charge a once-off initiation fee which could add significantly to your overall costs. As such, it is beneficial to shop around before committing to one lender as different providers have varying requirements when it comes to interest rates and additional fees. Furthermore, seeking out online lenders is becoming increasingly popular as most applications can now be completed quickly from home without having to visit a branch in person.
The cost of taking out a personal loan largely depends on factors such as credit history, income level and amount borrowed so understanding these elements prior to applying for a loan online can help determine what kind of deal best suits you financially. When assessing potential deals offered by various lenders always make sure that you are aware of all terms and conditions associated with each option in order to avoid any nasty surprises down the line. Moving onto how to start the personal loan application process…
How To Start A Personal Loan Application
A recent survey found that over 13 million South African households are in debt, with the average household owing an astounding R170 000. Starting a personal loan application is now easier than ever before – and it can help you manage your debt by allowing for consolidation.
The first step to obtaining a loan is to determine whether you meet the criteria of the credit provider: most have similar requirements but may differ slightly in terms of income or existing debt levels. It’s important to understand each lender’s parameters so that you don’t waste time applying at one who won’t accept your application. Once you’ve identified potential lenders, apply online using their secure websites. You’ll need to provide financial details such as bank statements, payslips and other documents necessary to verify your identity and background information.
The next stage involves comparing interest rates, repayment options and fees associated with different loans from various providers; this will ensure that you find the best deal available. Additionally, be sure to read through all terms and conditions thoroughly before signing any contracts, including with online personal loan applications or any other forms of borrowing money. Be aware of fine print concerning security deposits or early payment penalties which could increase costs if not factored into your decision making process from the beginning.
By understanding what’s involved in starting a personal loan application, consumers can make informed decisions about how they want to move forward with managing their debts responsibly while taking advantage of the many repayment options available.
Repayment Options Available
When applying for a personal loan in South Africa it is important to consider the repayment options available. The loan repayment terms range from 1-60 months and the total amount payable will include interest charges based on your credit profile. Generally, once approved, funds will be deposited directly into your bank account within 24 hours. Maximum interest rate that can be charged by banks or financial institutions is prime plus 10% annually. Additionally, most lenders may charge a once off initiation fee ranging between R20 – R200 depending on the institution you choose to work with.
It is important to understand all of the fees and repayment terms associated with personal loans before signing any agreements so that you are aware of what needs to be paid back over time. Knowing this information ahead of time allows borrowers to budget accordingly and plan how they will repay their debt responsibly. It also helps them make an informed decision when considering different types of lenders and products offered in the market. By understanding the full cost of borrowing money, consumers can make sure they select the right lender for their unique situation. With these factors considered, individuals can confidently move forward with getting access to funds they need while taking control of their financial future.
Benefits Of Having A Personal Loan
Accessing cash quickly is one of the key benefits of having a personal loan. Many lenders offer online applications, allowing potential borrowers to access funds in as little as 24 hours after approval. This can be helpful for those who need money urgently and do not have time to wait for traditional banking processes. Additionally, applicants often benefit from competitive interest rates when taking out an online personal loan.
When it comes to repayment terms, many lenders are flexible with their options. Depending on the lender and individual circumstances, there may be opportunities to customize payment schedules or extend terms if needed. A well-structured repayment plan can help ensure that debt payments remain manageable over the course of the loan term.
Personal loans also offer convenience; since most lending services are now conducted online, applying for a loan has never been easier. With just a few clicks, you can complete an application and get approved within minutes – no more waiting around at bank branches or dealing with paperwork hassles. All this makes it easy for individuals to secure funds quickly and conveniently without breaking the bank.
In addition to these advantages, when used responsibly, personal loans can even improve credit scores by helping build positive payment history – something that will come in handy down the line when attempting to obtain other types of financing such as mortgages or auto loans.
Risks associated with taking out a personal loan should always be considered carefully before making any decisions about borrowing money.
Risks Involved With Taking Out A Personal Loan
Taking out a personal loan can be an attractive option, but it is important to consider the risks involved. It is essential that you understand your risk profile and the associated costs before taking on any debt. One of the most common risks related to personal loans in South Africa is debit order abuse. This occurs when lenders push consumers into signing agreements with high fees or unaffordable repayment schedules, often subjecting them to long-term financial hardship.
| Risk | Potential Impact | Proactive Solution |
|---|---|---|
| Debit Order Abuse | Long-Term Financial Hardship | Ensure contractual terms are clear upfront, research lender’s reputation & reviews online, read all documents carefully before signing agreement |
| Unaffordable Payment Schedule | Defaulting on Payments/Damaged Credit Score | Analyze current finances for affordability assessment; ensure monthly payments fit budget capabilities without compromising other necessary expenses |
| High Fees & Interest Rates | Increase Monthly Expenses/Debt Burdenability | Shop around for best rates offered by various providers; compare offers thoroughly; negotiate if possible; take maximum advantage of introductory offers (e.g., once off initiation fee waived) subject to credit approval |
Therefore, it pays to do some research prior to taking out a personal loan and familiarize yourself with potential risks so as to make informed decisions that will benefit you financially in the short and long term. With this knowledge at hand, borrowers should also aim to implement financial protection strategies such as setting up emergency funds and understanding their rights as a consumer.
Financial Protection Strategies For Borrowers
For South African’s looking to take out personal loans, it is important to consider the various financial protection strategies available. Consolidation loans are one of these options as they allow borrowers to combine multiple debts into a single loan with fixed at our current interest rate and repayment period. This allows for easier management of debt by consolidating payments under one loan agreement. Additionally, debt consolidation can also help reduce the amount of money owed in total as lenders may be willing to offer lower rates or waive certain fees associated with taking out multiple loans.
Another option is to purchase a personal protection plan which provides coverage against unexpected events that could affect an individual’s ability to repay their debt such as illness or job loss. This type of policy usually offers a payout that can help cover monthly payments until the borrower can make arrangements to pay off the balance in the event of an emergency. It should be noted however, that this type of policy does not guarantee full payment on all outstanding debts so it is important to read through the terms and conditions before signing up for any specific product.
It is essential that individuals understand their obligations before entering into any credit agreements as it will ensure they have appropriate financial protection measures in place when things don’t go according to plan. As part of responsible borrowing practices, South Africans must familiarise themselves with what services are offered by credit providers in South Africa before committing to a loan agreement.
Services Offered By Credit Providers In South Africa
In South Africa, it is estimated that over 11 million consumers have access to some sort of credit. As a financial advisor, it is important to understand the services offered by credit providers in order for individuals to make informed decisions when taking out a loan. In this section we will discuss what personal loans are available and their associated considerations for applying for them.
A personal loan is defined as an unsecured loan which may be used to meet various needs such as home renovations or consolidating debt. When looking into getting a personal loan, there are several factors to consider before agreeing with the terms of the loan provider. Loans are subject to meeting certain criteria depending on your financial situation. This includes income level and current interest rate, amongst other conditions set out by the lender. It is essential to ensure that any potential loan meets your needs and can be repaid without difficulty.
Credit providers also offer other types of lending products apart from personal loans including car finance, student loans and mortgages. Depending on individual circumstances these options may suit better than traditional borrowing methods. Therefore researching all available lending products is advised when considering taking out a loan so you can determine which one best suits you requirements.
Considerations For A Personal Loan Application
When it comes to taking out a personal loan in South Africa, there are several considerations that should be taken into account. Whether you’re looking for an online personal loan to fund home improvements or any other purpose, understanding the various aspects of applying for and using a personal loan is important.
The first factor when considering a personal loan is interest rates. Interest rates can vary significantly depending on the lender and your credit status. It’s important to read all offers carefully and compare different lenders before making a decision as this will ensure that you get the best rate available based on your current financial situation. Additionally, you may also want to consider whether any additional fees or charges apply which could add up over time if not considered early on in the process.
An easy online application with low-interest rates may interest many borrowers seeking a personal loan. However, some loans come with restrictions such as predetermined repayment terms or limits on how much money can be borrowed at one time. It is therefore essential to make sure that these conditions meet your specific needs prior to signing any agreement or contract. Finally, applicants must also keep in mind their obligations under The National Credit Act (NCA) 2005 by ensuring they only borrow what they can afford to repay within the required timeframe set out by the Reserve Bank of South Africa (RBSA).
When considering debt consolidation services provided by credit providers, it is important evaluate potential options thoroughly to identify which option works best for each individual case given its unique circumstances and requirements.
Debt Consolidation Services Provided By Credit Providers
Debt consolidation is a financial services option used by many people in South Africa. It enables borrowers to combine multiple loans into one loan, helping them to better manage their debt and improve their credit score. Credit providers offer various debt consolidation services depending on the borrower’s needs, such as:
-Consolidating existing debts into a single payment at an interest rate that is lower than what they are currently paying.
-Refinancing high-interest debt with new financing options from lenders (such as banks) or through banking apps.
-Obtaining personal loans at an interest rate which may be lower than those of other forms of credit.
These services can help reduce monthly payments, making it easier for borrowers to pay off all their outstanding debt over time. Furthermore, consolidating multiple loans into one can also simplify the repayment process since all payments will be made towards just one creditor rather than two or more different ones. This can save precious time and money, allowing you to focus on improving your overall financial wellbeing instead of worrying about juggling numerous payments each month.
The ultimate goal of debt consolidation is to obtain a more favourable interest rate so that you can pay off your debt faster while reducing the amount of interest paid over the life of the loan. By taking advantage of these services offered by credit providers, you can potentially save yourself thousands in unnecessary fees and get back on track financially sooner rather than later.
South African Banking System And Regulations
South Africa’s banking system is governed by the South African Reserve Bank (SARB), which was established in 1921. The SARB supervises and regulates all of the country’s banks, including private and public banks, to ensure compliance with regulations. This ensures a level playing field for both consumers and lenders when it comes to personal loans.
Before you apply for a loan, it is important to find out if you qualify. Married couples are usually recorded as being married in community of property and their joint estate would be liable for any debt incurred before or during marriage. In the event of your death, your spouse may become responsible for repaying the loan unless otherwise specified in an agreement made between yourself and lender prior to taking out the loan. It is therefore important to plan with a policy that will pay off any outstanding debt upon your passing should this occur.
Another factor to consider when applying for a personal loan in South Africa is what type of policy do you want? There are short-term policies designed for those who need quick access to funds but cannot take on long-term loans due to current financial constraints, while there are longer-term policies available from reputable insurers so you can choose the one best suited to your needs. Depending on your situation, you may also opt for flexible repayment options such as reducing interest rates over time or increasing payments each month until the full amount has been paid back. When selecting a policy, make sure it covers not only your monthly repayments but also provides cover in case of unforeseen circumstances like unemployment or illness that could prevent you from making regular payments toward your balance at some point in future years.
| Qualifying Criteria | Policy Choice |
|---|---|
| Married Couples Recorded As Being Married In Community Of Property | Short Term Policies Designed For Those Who Need Quick Access To Funds |
| Joint Estate Liable For Any Debt Incurred Before Or During Marriage | Longer Term Policies Available From Reputable Insurers |
| Plan With A Policy That Will Pay Off Outstanding Debts Upon Passing Away | Flexible Repayment Options Such As Reducing Interest Rates Over Time Or Increasing Payments Each Month Until Full Amount Is Paid Back |
The process of obtaining a personal loan requires careful consideration when choosing an appropriate product given its potential risks versus rewards associated with it. While these decisions can seem daunting, seeking guidance from experienced professionals can help simplify matters and provide peace of mind knowing that you have chosen wisely based on sound advice tailored specifically towards meeting your individual requirements. Take advantage of this opportunity today and explore different options available so that you can select a policy of your choice with confidence!
Debt Consolidation Loans
Debt consolidation loans are a suitable financial solution for South African borrowers looking to manage their debt. Whether you’re looking to consolidate multiple debts into one loan, or apply for a single personal loan application, there are several credit providers that offer cover.
Here are three of the benefits associated with taking out debt consolidation loans:
- Consolidate multiple debts which reduces stress and simplifies your repayment process.
- Lower interest rates on consolidated loans help improve overall cash flow from repaying less each month.
- Receive more flexible payment terms when compared to individual lenders.
In addition to these advantages, debt consolidation offers an opportunity for consumers to make smarter borrowing decisions by enabling them to better understand their financial situation through budgeting and planning ahead of time. This allows borrowers to take control of their finances and focus on building a healthy relationship with credit providers in order to secure future financing options if needed. Debit order services offered by credit providers can also be used as part of this strategy for managing payments more effectively.
Debit Order Services Offered By Credit Providers
The hustle and bustle of life in South Africa often necessitates the need for personal loans. Looking towards credit providers as a viable option has become increasingly prevalent, especially with debit order services being offered to make repayment simpler.
Debit orders are an efficient way to pay back your loan without having to worry about missing payments or incurring late payment fees. Credit providers typically offer this form of payment as it helps them manage their collections more effectively while also making sure that you have the money available when it’s time to repay your loan. This service is usually provided free-of-charge but may come at an additional cost depending on the provider.
It is important to understand how debt works before signing up for any type of personal loan in South Africa. Knowing what kind of terms and conditions apply can help you plan accordingly and avoid unnecessary costs associated with missed payments or late fees due to insufficient funds in your account. Checking your credit score prior to applying for a loan will provide insight into whether you’ll be accepted by certain lenders who require higher thresholds than others.
Checking Your Credit Score Before Applying For A Loan
Before applying for a personal loan in South Africa, it is essential to check your credit score. Your credit score will give lenders an indication of how likely you are to repay the loan and whether you’re looking at a favourable interest rate. Without knowing your credit score, it can be difficult to work out which type of loan best suits your needs or what other options may be available to you.
Your credit report must have information about your past loans and payments made on them, as well as any other debts that you currently owe. This data helps lenders determine if they should provide finance and also determines the rates offered. If there are mistakes on your record, this could lead to lower scores; therefore, checking your credit regularly ensures that all entries are accurate and up-to-date.
It is important to check with multiple lenders so that you can compare their offers against each other before making a decision. Being aware of different lending criteria and understanding exactly what kind of financial commitment you would be taking on is key when considering personal loans in South Africa. By doing research and being informed, you can make sure that the loan chosen fits into your long-term plans and goals effectively.
Conclusion
When considering a personal loan in South Africa, it is important to understand the maximum amount one can borrow, repayment terms, fees associated with the loan and services available to help manage the loan. It is essential to ensure that all of these factors are taken into consideration before signing any agreements or contracts. By researching and understanding the various options available, individuals can make an informed decision when selecting a suitable financial product for their particular needs. Through careful thought and research, borrowers can select a loan which will be beneficial both now and in the future. Ultimately, by making use of responsible borrowing practices, individuals may enjoy the benefits of taking out a personal loan in South Africa.
Frequently Asked Questions
1. What Is The Maximum Loan Amount I Can Apply For?
When considering a loan, one of the most important pieces of information to understand is the maximum loan amount that can be applied for. This will help determine what type of loan best suits individual needs and financial obligations. Knowing this number allows individuals to make informed decisions about their borrowing habits and plan accordingly. As such, it is essential to consider all aspects when determining the maximum loan amount in order to get the most out of any potential personal loan.
When looking at loans available within South Africa, there are several factors to take into account when assessing the maximum amount an individual may apply for:
- Credit score – A credit score determines how much money a lender is willing to lend you based on your past payment history and other related details. The higher your credit score, the more likely lenders are to offer bigger loans with lower interest rates.
- Income level – Your current income also plays a role in deciding the size of a loan you’re eligible for. For instance, if you have a steady stream of income then you would likely qualify for larger amounts than those who don’t or who only receive sporadic payments throughout the year.
- Loan terms & conditions – Different lenders provide different terms and conditions so it’s important to read through these before committing yourself to anything specific. Make sure that whatever agreement you enter into fits within your budget as well as being reasonable from both parties’ perspectives.
- Collateral & security – Many lenders require collateral in order for them to approve large loans; depending on the value of whatever asset provided as security, this could greatly increase (or decrease) what kind of amount they are prepared to extend towards an applicant asking for funds.
- Interest rates – Lastly, interest rates play a significant role when it comes to choosing which lender offers better terms overall; research carefully and compare different institutions until something suitable is found as this could potentially save thousands over time while helping easily meet repayment schedules without strain on finances!
Ultimately, having adequate knowledge regarding each factor mentioned above helps ensure smart decision making when applying for personal loans in South Africa. By taking into consideration all relevant elements prior to submitting applications, applicants not only improve chances of acceptance but also achieve greater control over their financial future- regardless of whether or not they decide ultimately take up offers presented by various companies operating within region itself or abroad!
2. How Long Do I Have To Pay Off The Loan?
When considering a loan for personal needs, it is essential to understand what the repayment terms are. How long do you have before paying off the full amount? This article explores how long loans can be paid off in South Africa and what factors may affect this timeline.
The time period needed to pay back a loan depends on the type of loan chosen and its size. Generally speaking, lenders will offer short-term options with payment schedules ranging between one month up to three years. For larger amounts or longer terms, other arrangements such as unsecured credit lines or bridging finance may need to be considered. It’s important that borrowers ensure they can meet their repayments comfortably over the duration of the loan term.
In addition to the length of a loan, interest rates should also be taken into account when deciding which option is best suited for an individual’s financial situation. Interest accrues over the life of any agreement and therefore affects both monthly payments and total cost of borrowing. Borrowers must consider these costs carefully before committing to any agreement; even small differences in rate can add up over time so shop around and compare providers for competitive offers. Additionally, some financial institutions provide additional benefits such as discounts on fees or flexible payment plans – all beneficial depending on your requirements.
Making informed decisions about loans helps protect consumers from falling into debt traps due to unaffordable agreements or excessive interest charges – ultimately leading towards better financial outcomes for individuals in South Africa. Taking control of our own finances through responsible borrowing is paramount in today’s challenging economic environment where access to credit has become more accessible than ever before.
3. Are There Any Additional Fees Associated With The Loan?
When considering loan options, it is important to understand any additional fees associated with the loan. It can be beneficial for borrowers to research and compare different lenders in order to find the best option that meets their needs. Additionally, understanding potential extra costs of a loan can help people make an informed decision before they commit to taking out a loan.
The most common types of fees associated with loans include:
- Origination Fees – This fee covers administrative tasks related to setting up the loan such as credit checks or processing paperwork. The amount typically ranges from 0-5% of the total loan value.
- Prepayment Penalties – If a borrower pays off all or part of their loan early, some lenders may charge a penalty which could be equal to 1-3 months’ worth of interest payments on the principal balance.
- Late Payment Fees – If borrowers miss repayments this could incur a late payment fee along with corresponding penalties or higher interest rates.
It is also important for prospective borrowers to consider other aspects when researching personal loans in South Africa such as repayment terms, eligibility criteria and any discounts offered by certain lenders. Ultimately, having these details will enable people to choose the right lender who offers competitive rates and clear terms regarding additional fees so they can confidently borrow money if needed.
4. How Quickly Will I Receive The Loan Once Approved?
When applying for a personal loan, one of the primary questions is how quickly will I receive the loan once approved? This question is important to ensure that funds are received in an efficient and timely manner. It is also essential to understand any additional fees associated with the loan to prevent surprises down the line.
As a financial advisor, it’s my responsibility to provide you with accurate information so that you can make informed decisions about your finances. Here’s what you need to know when it comes to receiving a loan:
- The timeline for loans depends on various factors such as:
- Type of Loan: Different types of loans have different timelines for approval and disbursement. For example, secured loans usually take longer than unsecured ones because they require more paperwork and documentation from borrowers. Also, some lenders may offer same day or next business day funding if all requirements are met beforehand.
- Lender: Some lenders process applications faster than others depending on their internal processes and technology used. Doing research into different lenders before submitting an application can help determine which lender would be best suited for your needs.
- Once approved, most personal loans are deposited directly into the borrower’s bank account within 24 hours or less. In order for this process to go smoothly, it is essential that all documents required by the lender are provided promptly and accurately. Failure to do so could lead to delays in disbursal of funds which could be detrimental if money was needed urgently.
It is therefore important to carefully consider these factors when selecting a personal loan in South Africa. Researching available options thoroughly helps ensure that you get the right type of loan at optimal rates while ensuring timeliness when it comes to receiving your funds after being approved. Taking these steps will put you in control of your finances and give peace of mind knowing that you made an informed decision regarding your loan requirements.
5. Are There Any Additional Services Available To Help Me Manage My Loan?
When it comes to managing a loan, every borrower needs to have the right tools and resources at their disposal. This is especially true for those who plan on taking out personal loans in South Africa. Fortunately, there are many services available that can help borrowers manage their loan effectively and efficiently.
One of these services includes budgeting assistance. A financial advisor can provide guidance on how to create a budget that works with the terms of your loan. Additionally, they may be able to recommend additional strategies such as setting up automatic payments or other payment options that will make repaying your loan easier over time. They also can offer advice on how best to use any extra funds from your loan repayment schedule for other investments or savings opportunities.
Another helpful service offered by some lenders is debt consolidation assistance. If you find yourself struggling with multiple high-interest rate loans, this type of service could save you money in interest charges and reduce monthly payments so you don’t overextend yourself financially. Debt consolidation typically involves consolidating all existing debts into one single payment each month which simplifies the process greatly and makes it much more manageable overall.
Additionally, some lenders offer access to credit counseling programs which can give borrowers practical solutions for addressing debt issues before they become too overwhelming or unmanageable. These counselors specialize in providing tailored advice based on an individual’s unique situation and goals, so making sure you take advantage of them if necessary should be part of any comprehensive borrowing strategy when considering taking out a personal loan in South Africa.