Capitec Loan Review

Capitec Bank, a renowned financial institution, was officially registered in 2001. Since its inception, it has grown remarkably, expanding its presence to encompass a vast network of over 800 branches and employing nearly 15 000 dedicated professionals across South Africa.

Guided by its core principles, Capitec Bank places immense emphasis on simplicity, affordability, accessibility, and providing personalised service to its valued customers. These principles serve as the foundation for their approach to conducting business, ensuring that every interaction is straightforward, cost-effective, and easily accessible to all individuals.

Capitec Bank offers an array of comprehensive financial services to cater to the diverse needs of its clientele. In this piece, we will focus specifically on their personal and consolidation loans, both designed to empower individuals and simplify their financial journeys.

Capitec Bank Loans at a Glance

Loan amount: R1 000 – R250 000
Loan term: 7 months – 84 months
Interest rate: 13.75% – 28.75% per year
Initiation Fee: R1 207
Monthly Service Fee: R69

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What You Should Know about Capitec:

Capitec Bank has earned a reputation for having the highest customer satisfaction rates in South Africa, thanks to its commitment to providing easy and accessible banking services. This customer-centric approach extends to Capitec's loan application process, where the goal is to simplify and improve accessibility for applicants.

Users of the Capitec app benefit from the convenience of instant loan approval, while non-Capitec customers may have to wait for a day or two, depending on document availability. Existing Capitec clients applying for a term loan enjoy the advantage of not having to submit any additional documents.

Pros of Capitec Bank

Capitec Bank allows you to consolidate all your existing loans, making it easier to manage your monthly repayments.
Capitec offers loan approval within minutes, providing a quick and efficient service to their customers.

Cons of Capitec Bank

If you are offered a significantly long loan term, the interest rate could be quite high.
First-time borrowers also typically get quoted extremely high interest rates.

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*Representative example: Estimated repayments of a loan of R30 000 over 36 months at a maximum interest rate, including fees of 27.5% APR would be R1 232.82 per month. BetterLoans is an online loan broker and not a lender. Our service is free, and we work with NCR-licensed lenders in South Africa. Interest rates charged by lenders can start as low as 20% APR, including an initiation and service fee determined by the lender. The interest rate offered depends on the applicant’s credit score and other factors at the lender’s discretion. Loan amount R500 – R350 000. Repayment terms can range from 3 – 72 months. The minimum APR is 5%, and the maximum APR is 60%.

How Do Capitec Bank Loans Stand Out?

Capitec Bank sets itself apart from other major banks in South Africa by offering extended repayment periods of up to 84 months. This feature appeals to individuals who prefer smaller monthly payments over a longer period. However, this advantage comes with the downside of higher interest rates.

Despite that, Capitec aims to provide quick loan processing, ensuring that funds are available immediately to customers. Their efficient systems and streamlined procedures minimise waiting times for loan approvals, enabling borrowers to access the funds they need promptly.

Capitec Bank Loan Products

Personal Loans

Capitec Bank offers personal loans to its customers, allowing them to borrow between R1 000 and R250 000. These loans can be repaid over a flexible 7 to 84 months, providing borrowers with a comfortable repayment schedule. The interest rates on Capitec’s personal loans range from 13.75% to 28.75% per year, allowing customers to choose a loan that suits their financial needs and abilities.

Consolidation Loans

Capitec Bank offers a valuable solution for borrowers. They can use a personal loan to consolidate all their current loans into one monthly repayment. This service helps simplify their financial responsibilities and makes monthly repayments easier to manage.

Benefits of Taking a Loan from Capitec Bank

There are several benefits to taking a loan from Capitec Bank. Firstly, borrowers can enjoy the convenience of paying fixed monthly repayments, which helps with better financial planning and budgeting. This means that borrowers know exactly how much they need to repay each month, making it easier to manage their cash flow.

Additionally, Capitec Bank offers flexible loans, allowing borrowers to choose the loan amount that suits their needs best. Whether someone needs a larger sum or prefers a smaller loan, Capitec Bank caters to individual preferences. Moreover, borrowers can choose between the lowest monthly instalment or the lowest interest rate, providing greater customisation and financial flexibility.

Capitec Bank Loan Interest Rate and Fees

Capitec personal loans come with various additional fees that borrowers should be aware of. One of which is the R69 monthly service fee, which Capitec adds to cover the costs of administering and managing the loan. In addition, credit insurance is required for larger personal loans, and this insurance covers retrenchment and death. While having insurance can make you feel more secure, it’s important to remember that it also increases the monthly repayment amount, adding an additional expense to the loan.

Furthermore, Capitec charges an initiation fee of R1 207, which is a one-time charge or fee imposed by the lender at the beginning of the loan agreement. It is intended to cover the administrative costs associated with setting up the loan and processing the necessary paperwork.

Capitec personal loans have an annual interest rate that ranges from 13.75% to 28.75%. The actual interest rate applied to a loan depends on several factors, such as the borrower’s employment status, credit history, and ability to make consistent instalment payments. Capitec considers these factors to evaluate the lending risk associated with an individual, and the interest rate is determined accordingly.

How To Qualify For Capitec Bank Loan

Here are 5 things you’ll need to qualify for a loan with Capitec Bank:

Valid ID Document: To kick off the loan application process, you’ll need to provide a valid form of identification. This can include your ID book, smart card, driver’s license, or passport. The document must confirm that you are 18 years of age or older, as this is a crucial requirement to comply with legal and banking regulations.
Recent Pay Slip: Capitec Bank wants to ensure that you have a steady income to support your loan repayment. You’ll be asked to submit your most recent pay slip to prove your earnings. This document serves as evidence of your regular income and helps the bank assess your ability to repay the loan.
Bank Statement: If your salary isn’t directly deposited into your Capitec account, you’ll need to provide a bank statement. This statement should show the three most recent consecutive salary deposits, giving the bank a clearer picture of your financial situation and income stability.
Credit History: Capitec Bank takes your credit profile into consideration during the loan qualification process. They will review your banking and credit history to evaluate your financial track record.
Income and Expense Evaluation: Capitec Bank follows a responsible lending approach, ensuring that the loan amount you qualify for aligns with your financial capacity. Your income and expenses will be carefully reviewed to determine an appropriate loan amount. This evaluation aims to prevent over-indebtedness and promote responsible borrowing practices.

How to Apply for a Capitec Bank Loan

The best way to apply for a Capitec loan is to use BetterLoans. In addition to Capitec, we request loan offers from other top lenders. You can easily compare and choose the best loan offer.

To apply for a loan at Capitec Bank, several convenient options are available to you. The most commonly used method is to apply online through their official website. When opting for the online application, it is important to have all the required documents ready to streamline the process. Ensure you gather the necessary paperwork before completing the online loan application form.

In addition to the website, Capitec Bank also offers the convenience of applying for a personal loan or loan consolidation through their dedicated mobile application called “Capitec Bank.” This app is designed with a user-friendly interface, making it easy for customers to navigate and complete their loan application process conveniently from their smartphones.

If you prefer to communicate directly with a representative, you can call Capitec Bank at 086 066 7789. This helpline can answer your queries and guide you through the loan application process. Alternatively, you can send an SMS with the keyword “CREDIT” to 43421, and Capitec Bank will provide you with the necessary information and assistance.

For those who prefer face-to-face interaction, you have the choice to visit one of the over 800 Capitec Bank branches located throughout South Africa. By visiting a branch, you can receive personalised guidance from the bank’s staff, who will assist you with your loan application and address any specific concerns you may have.

How Long It Takes Capitec Bank to Approve a Loan

Capitec Bank usually grants loan applications within a few minutes, and once the applications are approved, the funds become instantly accessible. The company’s commitment to providing fast loan approvals and immediate access to funds reflects its dedication to delivering exceptional customer service. By leveraging technology and optimising their processes, they strive to minimise any potential delays traditionally associated with loan applications.

It is important to note that the specific timeline for loan approval may vary depending on various factors, such as the type of loan being applied for, the applicant’s credit history, and the accuracy and completeness of the provided information.

Is Capitec Bank a Trusted and Reliable Lender?

Capitec, initially established in 2001, has experienced significant growth over the years and has emerged as one of the most prominent and recognisable banks in South Africa. With its extensive network of branches spread across the country, Capitec has successfully established a strong presence in various regions.

One of the key aspects that sets Capitec apart is its registration with the National Credit Regulator (NCR). This registration signifies that Capitec is bound by the regulations of the National Credit Act of 2005. By adhering to these regulations, Capitec ensures that it operates within the legal framework and is committed to protecting its customers against unethical credit practices.

Capitec’s performance in customer reviews on the popular South African review platform, HelloPeter.com, is quite poor. With a substantial number of reviews, reaching over 24 000, Capitec receives an average rating of only 1.6 out of 5 stars. However, it is important to consider that online platforms often receive more complaints than compliments. On the other hand, according to the 2020 South African Customer Satisfaction Index conducted by Consulta, Capitec stands out as the bank with the highest level of customer satisfaction in South Africa.

Capitec Bank Contact Details

Office Address: Stellenbosch Ikhaya, 5 Neutron Road, Stellenbosch
Open:Weekdays 09:00 – 18:00, Weekends 08:00 – 13:00 (hours can differ per branch)
Email: [email protected]
Phone: 0860 10 20 43
Website: www.capitecbank.co.za

Foli has an MSc. Economics degree, and has been active in South Africa lending space for years. Whenever he is not writing, you will find him building websites.