Woolworths Personal Loan Full Review
Find out more about one of the most popular and easiest personal loans in South Africa.
One of the largest lenders in South Africa, Woolworths, is offering one of the best deals in the country when it comes to personal loans.
Borrowing up to R120.000 on an unsecured personal loan, Woolworths has created the most advantageous conditions on the market, especially with its longest repayment terms and benefits.
Got interested? Check out all the details you should know about a Woolworths personal loan, including its terms, fees, amounts, advantages, and much more.
Who is Woolworths Bank?
One of the most popular lenders on South Africa, Woolworths started its history in Cape Town more than 90 years ago.
Establishing itself in 1931, Woolworths was one the first retailers on the country to offer employees a pension fund, medical aid and maternity leave.
Today, Woolworths offers fairly large loans options, among several other financial services, through a joint-venture with Absa Bank.
How Woolworths’ Personal Loan works?
Created to suit its clients’ major needs, Woolworths’ personal loans are very flexible, and its funds can be used for a wide range of purposes.
You can use your personal loan’s funds to pay off your debts, plan vacations or a wedding, or even take the next step in your education.
With a Woolworths Personal Loan, customers can borrow from R2,000 up to R120.000, with repayment terms ranging from 12 to 60 months.
When applying for your Woolworths personal loan, you can choose a repayment term that best suits your budget and avoid taking on more debt.
And the best of all: This is an unsecured personal loan, which means you don’t need to provide an asset to secure your loan installments.
When it comes to interest, Woolworths rates average at 17.50% APR which is well below South African’s national average.
Woolworths’s personal loans offer customers a range of benefits that go beyond their high amounts and long repayment terms.
Among the major benefits of a Woolworths personal loan, clients don’t have to worry about any hidden fees or prepayment penalties.
That means customers can save a lot of money by making early repayments or even paying off their entire personal loans without any penalties or fees.
Woolworths also makes the loan’s terms easier to understand and even provides a loan calculator on its website. That allows customers to estimate their monthly repayment based on the loan amount, term, and interest rate.
Are there any disadvantages?
While Woolworths’s personal loans offer many benefits, there are also some potential disadvantages that customers should be aware of.
One of the biggest drawbacks is that the interest rates on these loans can be relatively high, especially for customers with lower credit scores.
Additionally, there are fees associated with these loans, including a service fee, which can range from R57 to R169 per month.
Woolworths also charges for an initiation fee, which can be as high as R1207.50, depending on loan’s total amount.
It is also important to note that customers who delay their payments will be charged with late fees, having to pay an additional percentage of the overdue amount.
Customers who default on several payments can face more serious consequences, such as damage to their credit score and even legal action from the bank.
Overall, Woolworths’s Bank’s personal loans are a useful financial tool, and its major disadvantages are related to overdue payments and are also shared with other major lenders.
How do I apply?
You can tap on the green button below and check out the step-by-step guide, including all the requirements, on how to apply for a Woolworths’s personal loan.