Prior to 1998 African Bank
operated as small commercial bank for 24 years. Then 16 years ago Theta Investment Group acquired African Bank license and merged African Bank with King Finance Corporate (“King”), Unity Financial Services (“Unity”) and Alternative Finance (Altfin”). In 1999 Theta Investments Group changed their name to African Bank Investments Ltd. In 2002 African Bank Limited acquired Saambou Personal Loan Bank and three years later (Eyomhlaba) announced merged into African Bank. The following year African Bank Miners Credit merged into African Bank and in 2008 the bank acquired Acquired Ellerine Holdings.
What is the size of African Bank’s loan book? On 31 Dec 2013 their books were R60 billion in size.
What is the interest rate on their personal loans? Their rates vary from 9% to 32.1%. The rate you are allocated will be based on the applicants risk level.
How long can you borrow for? African Bank’s minimum loan period is three months and maximum is 84 months. (Average loan size in 2013 was R11 444, Average term was 46 months). Offer sizes and terms to customers employed in civil service were reduced in 2013, due to their increasing indebted status) .
What is the cost of credit insurance? Based on the risk level of the applicant a percentage of outstanding loan value will be assigned from 4.5% (low risk) to 14% (highest risk). This results in a reducing premium pattern, which is very different from the level premium product construct other providers have.
It is also important to note that a charge as a percentage of monthly outstanding balance is very different from a charge per original outstanding loan balance, so premium comparisons should be done with care. Further care should be taken in looking at what benefits are being offered for these rates and how competitive the underlying terms and conditions are.
ABIL’s credit life covers you in addition to installment payments for personal unsecured loans, the full outstanding balance cover upon death, permanent disability and non-fault terminations such as retrenchment (with no success in finding alternative employment).
According to African Bank very few insurers are prepared to cover the customer’s full outstanding balance for retrenchment risk, and this is one of the core parts of African Bank’s customer value proposition. Installment cover is also provided for other recognised involuntary reductions in income, such as compulsory unpaid leave or short-time, where the proportionate loss of income is taken into account in order for cover to be paid. As the applicant pays off the loan, so does that corresponding insurance component.
Hello Peter complaints: There are currently 1 730 complaints on Hello Peter for African Bank as of 26 April 2014.
Tel 0861 111 011
African Bank is currently not a provider with Justmoney. To apply for a personal loan with one of our providers click on the link below.