Woolworths has been a trusted favorite since it opened its first department store in 1931. They also have a good reputation for the financial services that they offer.
Woolworths offer personal loans from R2,000 to R75,000 which can be repaid over a period of 1 to 5 years.
As a representative example, if clients borrow R10,000 over 60 months at an interest rate of 20.75% their monthly repayment will be R269.13 with a total repayable of R16,147.80. The variable interest rate is linked to the repo rate and charged according to the National Credit Act.
Woolworths offer either fixed term or revolving personal loans. As the name suggests, with a fixed term loan customers repay a set amount each month until the loan is repaid. A revolving loan offers flexible repayments and the option to re-use any of the money that they have paid back against the loan, which could be very useful if the clients need cash fast. There is also the option to increase the loan amount. Additional payments and early settlement of the loan will not incur fees. There is a monthly service fee of up to R68.40 and for the revolving personal loans an initiation fee of up to R1,197.
To be eligible for the Woolworths personal applicants must meet the following criteria:
- Have a monthly income of at least R2,000
- Aged at least 18 years
- Have their own bank account
- Three months of bank statements or payslips
- Hold a South African ID
Repayment of the loan by direct debit is compulsory. Additional payments can be made in any Woolworths store, by Electronic Funds Transfer or at any branch of Absa Bank. Keeping in mind that applicants can take out optional loan insurance. This will cover the whole loan amount to be repaid in the event of death, disability or critical illness. In the event of layoff applicants instalments will be paid for twelve months.