Personal loans are a type of unsecured debt that you can use for various purposes, such as consolidating high-interest credit card debt, paying for home improvements, covering medical expenses, or funding a big purchase.
Personal loans typically have fixed interest rates, fixed monthly payments, and fixed repayment terms, which can help you budget and plan your finances.
To help you find the best low-interest personal loans in Africa in 2023, we have compiled a list of eight lenders that offer competitive rates and attractive features. We have based our selection on the following criteria:
- Interest rates: We have looked for lenders that offer low annual percentage rates (APRs) for borrowers with good to excellent credit scores (690 or higher). We have also considered any fees or discounts that may affect the effective APR of the loan.
- Loan amounts: We have looked for lenders that offer a wide range of loan amounts to suit different borrowing needs and preferences.
- Loan terms: We have looked for lenders that offer flexible loan terms to give borrowers more options and control over their repayment schedule.
- Eligibility requirements: We have looked for lenders that have clear and reasonable eligibility criteria for borrowers, such as minimum credit score, income, residency, and age requirements.
Here are our top picks for the best low-interest personal loans in Africa in 2023:
- Hippo is an online platform that allows you to compare personal loans online from a range of providers in South Africa. Hippo helps you get pre-qualified personal loan quotes in minutes based on your ID number and personal details. You can compare personal loans in a few easy steps and choose the best offer for your needs. Hippo works with reputable lenders that offer personal loans ranging from R1,000 to R350,000 with repayment periods from 7 to 72 months. Repayments are typically calculated at 27.25% interest per annum
- Fincheck Fincheck is another online platform that helps you compare personal loans from various lenders in South Africa. Fincheck lets you apply for personal loans up to R200,000 with repayment periods from 6 to 72 months. Fincheck also provides you with free credit reports and financial tools to help you manage your money better. Fincheck partners with trusted lenders that offer competitive interest rates and flexible repayment options.
- African Bank African Bank is a locally controlled bank that specializes in low-interest personal loans for borrowers with good to excellent credit. African Bank offers personal loans up to R350,000 with repayment periods from 7 to 72 months. African Bank has an offer called “Choose your Break”, which allows you to choose a break from payment for a month once every 12 months. African Bank also offers free retrenchment and death cover for your loan.
- FNB: FNB is a locally controlled bank with a massive reputation for innovative banking and tailored personal loans. FNB offers personal loans up to R300,000 with repayment periods from 1 to 60 months. FNB has an offer called “January Free”, which allows you to skip your loan instalment every January if your loan is up to date. FNB also offers no penalty fees for early settlement of your loan.
- Nedbank: Nedbank is a South African-owned bank with an excellent track record. Nedbank offers personal loans up to R300,000 with repayment periods from 6 to 72 months. Nedbank has an offer called “Nedbank Greenbacks”, which allows you to earn rewards points for every rand you spend on your loan repayments. You can redeem these points for cash back, airtime, vouchers, or donations.
- Capitec: Capitec is a bank that is bringing much change to how banking is done in South Africa. Capitec offers personal loans up to R250,000 with repayment periods from 1 to 84 months. Capitec has an offer called “Credit Insurance”, which provides free retrenchment and death cover for your loan. Capitec also offers opportunities to make extra payments on your loan to reduce the interest and the term.
- Absa is a British-owned bank that is part of the Barclays Group. Absa offers personal loans up to R350,000 with repayment periods from 12 to 84 months. Absa has an offer called “Credit Protection Plan”, which provides optional cover for your loan in case of death, disability, critical illness, or retrenchment. Absa also offers opportunities to make extra payments on your loan to reduce the interest and the term.
- Quickloanarena: Quickloanarena is an online platform that helps you find the best instant personal loans in Africa. Quickloanarena works with various lenders across Africa that offer personal loans up to $50,000 with repayment periods from 1 to 60 months. Quickloanarena also provides you with tips and guides on how to improve your credit score and manage your debt.
Conclusion
Personal loans are a useful way to access cash for various purposes, but they can also be expensive if you don’t shop around and compare your options. The best low-interest personal loans in Africa in 2023 are those that offer low rates, flexible terms, reasonable eligibility criteria, good customer service, and unique features.
