What you need to know about personal loans

Many people use personal loans to give them the help they need to achieve their goals and dreams or to simply give them a helping hand when they need it most. However, if you have never had a personal loan before and thinking about applying for one, then we have a few facts about personal loans that you need to know before you apply:

There are two types of personal loans: Unsecured personal loans and secured personal loans. With an unsecured personal loan, the financial institution lending you the money decides if you qualify for the loan based on your affordability and financial history. A secured personal loan, however is backed by assets, which means that if you fail to pay back your personal loan, the financial institution lending you the loan, has the right to claim from your assets as payment for your loan.

Where you can get a personal loan: Remember that if your employer has a contractual agreement with Iemas, you have access to our financial products. Depending on the contract, this could include our range of personal loans.

Know what you have to pay: The monthly re-payment amount is not the only fee that you will be responsible for. Here are the additional fees that you have to keep in mind when you apply for a personal loan:

Interest rate: this will be charged monthly together with your re-payment amount. Your Iemas personal loan’s interest rate will depend on your credit profile.

Initiation fee: this is a once-off payment. You will have to pay a once-off fee of R 1 207,50 to activate your Iemas personal loan, however the initiation fees for loans under R 9000 is less.

Admin fee: this is a re-occurring amount of R R69 that will be payable throughout the duration of the loan period when you have a personal loan with Iemas.

Benefits of having a personal loan with Iemas:

  • No penalty interest on your settlement amount: you will only be required to pay for the interest due up until you settle your personal loan.
  • You save: when your employer has a contract with Iemas to offer personal loans, the monthly instalment amount gets deducted from your salary which means that there are no additional banking fees. In addition, you also do not run the risk of skipping a payment – how convenient!
  • You get Iemas rewards: In addition to our competitive interest rates, when you purchase a product from Iemas, you become a member of the co-operative which means that you get to share in the profits through our annual rewards payment.

Are your employer not part of the family yet? If not, then ask your HR department to give us a call on: 0861 043 627. If your employer has a contract with us that includes personal loans, then visit our website for more information or speak to a consultant on: 0861 043 627 or SMS “Loans” to 32297 (SMS cost R1) or email loans@iemas.co.za.

Adapted from: https://www.creditkarma.com/personal-loans/i/what-you-should-know-about-personal-loans

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