Apply for a loan designed around your needs:

  • The amount you borrow is dependent on how much you can afford*
  • Choose an affordable repayment period
  • To apply you need to earn a salary, have a bank account and be
    between 18 and 65 years
  • Even if you don’t bank with ubank you can still apply
  • Affordability checks will be done to make sure that you can afford the loan
  • You can access your funds straight away from your ubank account

To apply, please bring the following:

  • Latest original payslip
  • Proof of physical address (not older than 3 months)
  • Green barcoded South African Identity Book or ID Smart Card
  • Valid passport with a valid work permit for non-South African citizens permit
  • And bank statements for the last 3 months (If not a ubank customer)

Fees charged include:

  • Initiation Fee
  • Monthly Service Fee
  • Credit Life Assurance Premium

Interest Rate

  • Variable interest rate linked to Prime

*Qualifying for a loan is dependent on your credit worthiness and your affordability. It is beneficial for you to have a ubank transactional account for the loan amount to be paid into and for the loan instalments to be collected from.

What is a transactional account?

Transactional account: A day-to-day banking account for customers who need an account for transacting, linked to a debit card. This is an ideal salary account and can be used for debit orders/stop orders or for electronic fund transfers (EFT).

The debit card gives you access to your money 24/7 at ATMs’. It can also be used at retailers to pay for goods or withdraw cash at point of sale devices.

In addition, ubank debit cards can be used for ecommerce transactions online, such as buying from Takealot or purchasing air tickets. Keeping track of your transactions is easy, with SMS ME.

What is a credit score?

  • It is a three- digit number that relates to how likely you are able to repay your debt
  • Credit score is how often you make payments on time and how many accounts you have in good standing.
  • A credit score is also based on a credit report information sourced from credit bureaus
  • The following are considered when calculating credit score:
    • Your payment history
    • How long you’ve had credit
    • The types of credit you have (credit cards, personal loans, student loans, mortgages, etc.)
    • Your credit limits and how much of those limits you are using
    • How much debt you have
    • Enquiries on your credit report

Who make use of the credit score and why?

  • Lenders use credit scores to evaluate the potential risk posed by lending money to consumers.
  • Lenders use credit scores to determine who qualifies for a loan, at what interest rate, and what credit limits.
  • Digital finance companies such as online lenders also use the data sources to calculate the creditworthiness of borrowers
  • Checking your reports regularly can help you see what’s impacting your score so you know where you could improve.

Understanding your credit profile

  • Your credit profile is a reflection of how well you manage your debt repayments
  • A negative credit record could negatively affect you in different ways
  • Creditors might charge you higher interest rates to protect themselves against bad debt
  • You are entitled to one free credit report form the credit bureau annually
  • If you believe you are listed incorrectly you can contact the following bureaus:
  • Transunion 0861 482 482
  • Experian 0861 105 665
  • If you are not satisfied with the response from the credit bureau, you may contact Credit Ombudsman on 0861 662 837
  • If are still not satisfied with their response you may contact the National Credit Regulator (NCR) 0860 627 627

What is regarded as good credit

  • Good credit ratings are gained when you borrow money and pay it back on time and for the full amount.
  • The better reports that go to the credit bureau, the better your credit.
  • Good credit helps you qualify for more on credit
  • Good credit can help us get a good rate
  • It affects almost every major buying decision.

Can credit be good for me?

  • Credit can improve your life, as long as you are responsible and use it for the right reasons.
  • Before you borrow money, ask why you want to borrow it – is it for a need or a want
  • Is credit the best way to pay for it?
  • Can you afford the repayments?
  • What must you give up to afford the credit payments?
  • How stable is your income and employment?

How can you improve your life by planning for the future?

  • Will the credit uplift me to achieving my long-term financial goals?
  • Have I taken the first step to knowing my financial health – do I know what my credit report looks like?
  • Will I be able to afford the instalments for the duration of the credit agreement?
  • Can I afford to repay all my credit and still have money left over?
  • Will the benefits of what I’m purchasing outlive the credit repayment period?
  • Do I know the exact amount I need before applying for credit?
  • Do I understand the full amount I’ll need to pay back when I add all the fees and interest?

Why do I have to have credit life insurance?

  • Rest assured that your credit is insured should anything happen to you that would prevent you from making repayments
  • Credit life insurance helps in the case of the permanent disability, involuntary retrenchment or natural and accidental death of the main policy holder’s death.
  • Credit life insurance will settle the outstanding debt amount with the finance provider.
  • The financial burden will not fall on your family if you have credit life insurance

Benefits of paying my loan on time

  • You maintain a good credit record.
  • Improves your ability to obtain credit in the future.
  • There are no additional fees and charges.
  • You may be offered lower interest rates in the future.

How can I pay off my loan faster?

  • Pay more every month
  • Make consecutive payments
  • Use your annual bonus or tax refund to pay extra into your loan account
  • Reduce expenses to pay a little extra every month
  • Do not skip payments

My credit application was declined what now?

  • Know the exact reasons why your application was declined
  • Avoid applying for more debt to see if you’ll get approved, the additional inquiries on your credit report make you look desperate for credit.
  • If your credit application was declined due to credit bureau issues
    • Request your credit report from the credit bureau
    • Review the reasons why you were declined,
    • Dispute any errors timeously
    • Pay your outstanding due accounts
    • Minimize the number of new credit applications you make

Tips on how to make your money work for you

  • The way you use credit can impact your financial life, and even your ability to get other loans later. The key to having credit work for you is responsible management.
    • Know the reason why you are borrowing, always borrow to pay or buy what you need. Don’t over-expose yourself
    • Keep track of where and how you spend the money you borrowed.
    • Make payment on time. The most important factor in your credit score is your payment history. If you miss payments, you will have a poor payment history
    • Monitor your bank accounts and loan accounts. Reconcile your statements regularly to make sure your records match.
    • Check your credit report regularly to keep up with what is happening in your credit profile. You are entitled to a free copy of your credit report annually. For more information, contact the Transunion
    • Be informed and know who are your credit providers and only sign up for any service offered by them