What are online bank loan interest rates in South Africa?
Despite a highly regulated lending system in South Africa, consumers who apply for an online bank loan without taking care to consider the interest rates may be charged an extortionate amount of money for their loan. When applying for a loan, a consumer who has an ideal credit risk profile typically earns enough to spend no more than 35% of their salary on loan repayments and has a good credit score. These borrowers are considered low-risk, and charged the prime rate, or thereabouts. Other consumers may be charged up to 42% interest, so it is vital that they take steps to negotiate their interest before agreeing to the loan.