Consolidation Loan in South Africa - Find The Best Offers

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If you’re on your debt recovery journey and are trying to get a handle on all your outstanding debt, it can be a bit overwhelming because of the complexity and the different types of debt you might have on your books. In order to make real progress, you need to be able to get all your ducks in a row and tackle things strategically. Consolidation loans can be really powerful tools that you can leverage to do that.

Consolidation loan application

Consolidation loan lenders in South Africa

Popular
Credit Smart
Minimum Amount:
N/A
Maximum Amount:
N/A
Loan Period:
N/A
Estimated Interest Rate:
N/A

Good to know:

  • Provides debt review
  • Help find better loan deals
  • Also provides debt counselling
Fincheck
Minimum Amount:
R1000
Maximum Amount:
R175,000
Loan Period:
3 - 72 months
Estimated Interest Rate:
16% annually

Good to know:

  • Apply under 2 minutes
  • Provides multiple offers
  • Not an actual lender
Nedbank
Minimum Amount:
R2000
Maximum Amount:
R250,000
Loan Period:
6 - 72 months
Estimated Interest Rate:
24,75% annually

Good to know:

  • Available to employed people
  • Loan option for self-employed
  • Have to earn a minimum of R3500/month
RSC
Minimum Amount:
R2000
Maximum Amount:
R250,000
Loan Period:
12 - 60 months
Estimated Interest Rate:
15% annually
Moneyshop
Minimum Amount:
R10,000
Maximum Amount:
R250,000
Loan Period:
12 - 72 months
Estimated Interest Rate:
15% annually

Good to know:

  • Uses bot for application
  • Also offers short-term loans
  • Must earn a minimum of R4000/month
African Bank
Minimum Amount:
R10,000
Maximum Amount:
R250,000
Loan Period:
7 - 72 months
Estimated Interest Rate:
15% annually

Good to know:

  • Get a quote in 3 minutes
  • Fixed monthly loan repayment
  • Requires proof of income document
Bayport
Minimum Amount:
R1000
Maximum Amount:
R250,000
Loan Period:
6 - 84 months
Estimated Interest Rate:
15% annually

Good to know:

  • Fixed monthly loan repayment
  • Offers debt consolidation loans
  • 24/7 service with mobile app
DirectAxis
Minimum Amount:
R5000
Maximum Amount:
R250,000
Loan Period:
24 - 72 months
Estimated Interest Rate:
15% annually

Good to know:

  • Also offers debt consolidation loan
Table of Contents

What is a Consolidation Loan?

A consolidation loan is an authorised financial service that allows you to combine all of your smaller loans, no matter what they relate to, into one easy-to-manage single loan amount. Instead of having to keep track of the payments you need to make on a number of different accounts, you can focus your attention on one consolidated account and one consolidated repayment figure.

Benefits of Consolidation Loan

There are a number of benefits that a consolidation loan can afford you:

  • Lower interest rate.Often consolidation loans can offer a lower interest rate than what you are currently paying, which is a big win for anyone trying to manage their debt effectively. When this is the case, you’ll save on interest each month and only have one fixed interest rate that you’ll need to worry about.
  • New Terms of Agreement. When used efficiently, the new Terms of Agreement on the consolidation loan can be more beneficial than the terms of your previous agreements, netting you a benefit in the process.
  • Lower monthly repayment.When you consolidate your debts into one payment to one creditor, you will likely lower your monthly instalments, giving you more flexibility and freedom with the extra money you’ll save. If you’re disciplined and use this wisely, then you can get out of debt quicker than would have without the consolidation.
  • Improves credit score.Every time you miss a payment on any of your debts, your credit score is negatively impacted. A consolidation loan, with its lower payments and more efficient administrative nature, reduces your likelihood of missing payments and can improve your credit score as a result. This has significant compounding effects and makes a big difference over the long run.
  • Simplify your finances. From an administrative perspective, having one debt payment to focus on every month greatly simplifies things and makes it much easier to get on top of your personal finances. This might seem trivial, but it actually makes a big difference psychologically and is one of the key reasons why this tool is so powerful.
 

How to Apply for a Consolidation Loan?

Debt consolidation loans are offered by a number of financial service providers, big and small, and each provider will have slightly different application procedures. However, the key principles that normally apply in these cases are as follows:

  1. Ensure that you meet the relevant eligibility criteria. Every provider will have their own criteria that you need to meet in order to apply. Be sure that you can tick all those boxes before applying.

  2. Apply to the institution of your choice with the relevant documents. The provider you choose will supply a list of documentation as well as an application form that needs to be completed in order to apply for a consolidation loan. This will often include your ID, proof of residence, bank statements, proof of debt accounts, etc.

  3. The financial provider will then check your credit score and other pertinent information before choosing to approve or deny your application. A good credit score usually means that you get better terms.

  4. If your application is successful, the provider will either send the money to your bank account to settle all the other debts you have, or they will deal directly with the creditors themselves.

  5. You will then have one admin fee and debt account only with that provider in which all of your other debt has been consolidated.

How to Find the Best Consolidation Loan?

There are a lot of different options and providers to choose from when considering a consolidation loan, and the best option for you will depend on a variety of different factors. That’s why the best way to find the right consolidation loan for you is to use a comparison tool like Loando.

Loando gathers all the relevant lenders and lists them on one page so that you can review your options quickly and easily. They do the research for you so that you don’t have to. You can have the peace of mind to know that you have the choices in front of you and can make a good decision without any fuss. Loando does all that they can to keep the data relevant and accurate at all times, as options shift and morph over time. They then deliver you the best possible decision on a silver platter.

It’s fast, easy, and most importantly – free. There is really is nothing to lose. It’s a no-brainer.

Frequently Asked Questions

Yes, you can – assuming you meet certain eligibility criteria. Use Loando to compare your options and pick the best one for your needs.

You can apply for a consolidation loan through any registered financial services provider. To select the one that works best for you, be sure to use the Loando comparison tool to make the right decision.

Yes, they can be if you have a number of disparate debt accounts that are weighing you down. A good consolidation loan will lower your monthly payments and simplify your finances significantly so you can handle your debt more efficiently.

Debt consolidation loans consolidate all of your debts with different creditors and for different purposes, into one easy-to-manage account which can greatly simplify your finances. Instead of worrying about a number of different monthly payments, you can just focus on one consolidated payment every month.

Yes, it will often improve your credit score because it reduces the likelihood of missing payments. When you have one consolidated payment to make every month, it’s much easier to manage than a range of different payments to different creditors. This simplicity serves to improve your credit score over time.