African Bank has introduced a personal loan which is linked to the current prime lending rate, designed to offer lower pricing and exceptional value to financially fit customers, the Fixed Prime Loan is the first of its kind in South Africa.
Israel Skosana, Head of Marketing and Consumer Insights at African Bank said, “The Fixed Prime Loan offering is a market game changer as it will influence how credit providers offer value to their clients. Repayments on these loans will be based on the ruling lending rate, which is currently at 8.5%. This is significantly lower than the current rates on offer for unsecured loans.”
According to Skosana, there is substantial appetite for this type of product in the market because of the lower interest rate that is fixed for the period of the loan. African Bank views the Fixed Prime Loan offering as a solution for consumers’ intent on receiving value at an affordable rate that will not have any surprises due to a change in the South African Reserve Bank’s REPO rate.
“The Prime loan will be targeted at the financially fit customer, who has passed our stringent affordability criteria and hence demonstrate their capacity to fulfill the required monthly installments. Eligible customers will be able to borrow a maximum of R20 000 up to 24 months, allowing for customers to enjoy a well-priced, straight forward and uncomplicated loan,” added Skosana.
As the largest unsecured lender in South Africa, African Bank has a thorough understanding of this market and has thus innovated a product that will offer exceptional pricing and value for current and new customers.
“We continue on our path to develop products that are designed to put the consumer in control of their finances by helping them understand that, when used responsibly, credit can be used to better their lives,” concludes Skosana.