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Old Mutual Loan Review

Old Mutual logo

Old Mutual holds the distinction of being the longest-standing mutual life insurance provider in South Africa, having been founded in 1845 in Cape Town. With an impressive history spanning nearly two centuries, this company has evolved into one of the most renowned and reputable financial service providers in South Africa.

Old Mutual has broadened its portfolio beyond life insurance, now encompassing personal loans and debt consolidation as well. In this article, we will delve into the details of Old Mutual’s loan offerings, exploring their terms, interest rates, and repayment options. By providing you with comprehensive information, we aim to assist you in making an informed decision about entrusting your credit needs to Old Mutual.

Old Mutual Loan at a Glance

Old Mutual Loan at a Glance

  • Loan amount: R2 000 – R250 000
  • Loan term: 3 – 60 months
  • Interest rate: 15.25% – 24.75%
  • Initiation Fee: R1 207.5
  • Monthly Service Fee: R60

What You Should Know about Old Mutual:

Old Mutual is a reliable institution that provides personal loans and debt consolidation services, catering to individuals in need of financial assistance. Benefiting from its extensive experience and reputation, Old Mutual offers diverse avenues of support to its customers. Whether you require a personal loan or need help with debt consolidation, Old Mutual is an excellent choice for reliable and trustworthy assistance.

Personal loans can be used for medical expenses, education funding, or purchasing a vehicle, providing flexibility in addressing different financial needs. On the other hand, debt consolidation simplifies managing multiple credit accounts by consolidating them into a single, more manageable payment structure.

Pros of Old Mutual
  • Old Mutual provides accessibility to their services both online and in person at their branches, allowing customers to choose their preferred mode of interaction.
  • One of the benefits of Old Mutual is that they offer the option to utilise personal loans for debt consolidation, helping individuals manage their debts more effectively.
Cons of Old Mutual
  • The interest rate they charge on their loans can be quite high, which may increase the overall cost for borrowers.
  • Customers have expressed negative reviews about Old Mutual on HelloPeter.com, indicating potential issues or dissatisfaction with the company.
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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%.

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How Do Old Mutual Loans Stand Out?

Old Mutual stands out simply due to the company’s longevity. Established in 1845, it proudly carries the distinction of being the oldest financial institution in South Africa. Over the course of its extensive history, Old Mutual has not only witnessed the evolution of the financial landscape but has actively contributed to shaping it.

Old Mutual offers its customers the convenience of applying for a personal loan and using that loan to consolidate their debt. Customers have the option to inform Old Mutual that they wish to utilise the loan for debt consolidation purposes. In response, Old Mutual takes the responsibility of paying off the respective accounts on behalf of the customers, streamlining the process. 

Old Mutual Loan Products 

Personal Loans

Old Mutual offers a personal loan ranging from R2 000 to R250 000. Borrowers have the flexibility to choose a repayment term that suits their needs, ranging from a minimum of 3 months to a maximum of 60 months. The interest rate for these personal loans falls from 15.25% to 24.75%.

Consolidation Loans

Old Mutual offers the option to apply for a personal loan, which can be utilised for debt consolidation instead of personal expenses. You have the ability to specify that your Old Mutual Personal Loan should be allocated towards settling your current credit accounts.

Benefits of Taking a Loan from Old Mutual

Old Mutual provides multiple avenues for individuals to apply for personal loans, enabling them to choose the most convenient method for their needs. Whether it’s the online application process, the option to apply over the phone, or the accessibility of in-person applications at their numerous branches, Old Mutual aims to cater to a wide range of customers, ensuring that as many people as possible can benefit from their loan offerings.

Old Mutual provides its customers with financial guidance and assistance during the loan process. They have a team of financial advisors or access to resources that can help individuals comprehend the loan terms, evaluate their ability to repay, and make well-informed borrowing choices.

Old Mutual Loan Interest Rate and Fees

Old Mutual offers a personal loan with an interest rate that falls between 15.25% and 24.75%. While the interest rate is a significant factor in determining the cost of the loan, borrowers should also take into account the additional charges associated with it. Apart from the interest, borrowers are obligated to pay a monthly service fee of R60.

This fee adds to the overall expense of the loan and should be factored in when assessing its affordability. Additionally, there is an initiation fee of R1 207.5, which is a one-time payment made at the start of the loan. It is crucial for potential borrowers to carefully consider these fees alongside the interest rate to gain a comprehensive understanding of the total cost involved.

How To Qualify For Old Mutual Loan

To qualify for a loan from Old Mutual, these are the requirements that you need to meet:

  1. South African Citizenship: You must be a citizen of South Africa to qualify for an Old Mutual loan. 
  2. Age Range: Applicants should fall within the age range of 18 to 60 years. This ensures that borrowers have a reasonable timeframe to repay the loan.
  3. Documentation: Make sure to gather the following documents before applying:
    • Valid ID: A valid identification document is required for identification purposes.
    • Latest Payslip: Providing your latest payslip proves your current employment status and income.
    • Bank Statements: Submitting 3 months’ bank statements (no older than 7 days) allows Old Mutual to evaluate your financial stability and history.
  4. Minimum Monthly Income: To meet Old Mutual’s requirements, you must have a minimum monthly income of at least R2 500 before deductions. This criterion ensures applicants possess the financial stability necessary to meet repayment obligations and promotes responsible lending practices.

By fulfilling these key criteria, you’ll increase your chances of qualifying for an Old Mutual loan.

How to Apply for an Old Mutual Loan

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

Applying directly for an Old Mutual loan is a convenient and straightforward process with multiple options available to suit your preferences. One way to apply is through their user-friendly online platform. By visiting the Old Mutual website, you can access the loan application section and follow the prompts provided.

During the application, you will be required to provide personal details such as your name, contact information, and identification documents. Additionally, you will need to share your financial information, including income, expenses, and any existing debts. Old Mutual may also request your employment details to assess your repayment capacity.

Once you have completed the application, Old Mutual will generate a loan quote based on the information provided. It is crucial to carefully review the terms and conditions associated with the loan before accepting the contract.

Alternatively, if you prefer a more personal approach or require assistance during the application process, you can apply for an Old Mutual loan via telephone. Call 0860 000 866, and a representative will guide you through the application steps. They will ask you to provide the necessary personal, financial, and employment information over the phone. Once again, it is essential to carefully review the loan terms and conditions before finalising the contract.

Lastly, if you prefer face-to-face interaction, you can visit one of the Old Mutual branches. There, you can speak directly with a representative who will assist you with the loan application process. They will guide you through filling out the required forms and ensure that all necessary information is provided accurately. Remember to carefully read and understand the terms and conditions before accepting the loan offer from Old Mutual.

How Long It Takes Old Mutual to Approve a Loan

Old Mutual strives to process loan applications within one business day. However, for this expedited process to be successful, it is crucial that applicants ensure they accurately fill in all their financial and personal information and attach all the necessary documents required for the loan application.

To ensure a thorough evaluation, Old Mutual will meticulously review the provided information and conduct a comprehensive credit check. This evaluation process helps the institution determine the applicant’s creditworthiness and make an informed decision on whether to offer them a loan or not.

Is Old Mutual a Trusted and Reliable Lender?

Established in 1845, Old Mutual is the oldest life insurance provider in South Africa. It has grown into a formidable company with over 30 000 employees and operations in 14 countries across Africa and Asia. Alongside life insurance, Old Mutual now offers personal loans and debt consolidation solutions, expanding its range of financial services. The company is registered with the NCR (National Credit Regulator), a regulatory body in South Africa that ensures fair and responsible operations in the credit industry.

Old Mutual has garnered a significant number of customer reviews on HelloPeter.com, a popular South African customer review site. With over 11 000 reviews, the company has an average rating of 1.5 out of 5 stars based on customer feedback. However, it’s important to note that online platforms tend to attract more complaints than compliments.

When considering a loan from Old Mutual, it is highly advisable to conduct thorough research. This entails examining aspects such as interest rates, terms and conditions, repayment options, and customer reviews. By gathering the necessary information, you can make an informed decision that aligns with your financial needs and goals.

Old Mutual Contact Details

  • Office Address: Old Mutual Investment Group, West Campus Entrance 1, Mutualpark Jan Smuts Drive Pinelands, 7405 P.O. Box 878, Cape Town, 8000

  • Open: Monday to Friday: 07:30 to 18:00. Saturday: 08:00 to 14:00. Closed on Sundays and Public Holidays

  • Email: [email protected]

  • Phone: 0860 000 866

  • Website: www.oldmutual.co.za

Frequently Asked Questions (FAQs)

You can check your loan status by visiting your nearest Old Mutual branch or calling the call centre on 0860 445 445 or 0860 000 866.

Old Mutual typically will not offer a loan to blacklisted individuals, although they might approve a consolidation loan.

Old Mutual uses Experian to check applicants’ credit scores and history.

Foli Raheem
Foli Raheem

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.