Money Matters.

CONTENT INDEX
1. Credit Application 2. Interest & Cost of Credit 3. Credit Score & Credit Record
4. Repaying Credit 5. Credit Insurance 6. Financial Health
WELCOME TO AFRICAN BANK

We pride ourselves on fair treatment of our customers . This is your money matters guide , giving
you important information on your rights and responsibilities when borrowing money from us.
There are the two main ways in which African Bank offers customers credit:
Personal Loans and Credit Cards.
1. CREDIT APPLICATIONS IN 3 STEPS:
APPLYING FOR CREDIT
When you apply for credit, African Bank needs proof that you can afford to repay the
money. Therefore, we ask you for certain information and documents that show you
earn more than you spend and that you are creditworthy. You will also be asked for
proof of your identity, this is a requirement of the FICA laws.
For your protection and ours, please be honest about the information you give us. As
a debtor, you enjoy certain rights according to the National Credit Act (NCA). But you
may lose some of these rights if you give us false information. We will also ask you to
give us permission (authorisation) to check your credit record with credit bureaus and
check with the South African.
CREDIT EVALUATION AND APPROVAL
Once we have all the information, we must decide if you can afford the loan and if your
record shows you can be trusted with credit. Our decision is based on the information
you give us and the information from the credit bureaus.
If we do not approve you loan application, you can ask for reasons and we will give you
a printed report to explain. It might be because you do not earn enough, or because
your income is insecure. It might be because of your credit record; if so you can contact
the credit bureau and check your
credit record for yourself.
African Bank Limited - Registration Number 2014/176899/06. a wholly owned subsidiary of African Bank Holdings Limited
Tel: 011 256 9000 Address: 59 16th Road, Midrand, South Africa Postal: Private Bag X170, Halfway House, 1685, South Africa
Refer to the African Bank website for Directors and Company Secretary details: www.africanbank.co.za 534,010,314
LoanContract
NCR Registration number: NCRCP7638. African Bank Limited is an Authorised Financial Services and Credit Provider. RDC91017/16 Version: 3.0.0
Page 1 of 8
If your application is successful, we will give you a pre-agreement statement and
quotation, valid for five (5) business days. It lists the terms and conditions of the
credit agreement and includes all fees and costs.
Note: the pre-agreement will not be valid if, after issuing you a quotation,
there is new information that affects your credit. On seeing this new
information, African Bank may provide you with a revised pre-agreement
statement or refuse you credit.
SIGNING THE STATEMENT:

● • Do not put your signature on something you are not happy with. Go through
● the pre-agreement statement and quotation, the terms and conditions, and all
● other documents we give you.
● • Are you happy with them, are you able to fulfill you side of the agreement?
● • Do you understand that there are fees and costs involved in repaying a loan?
● • Do you understand what each amount is for and are you comfortable with the
● total monthly amount?
If you are unsure about any information ask a consultant to explain or contact
African Bank’s Customer Services Contact Centre on 0861 111 011 .
QUALITY CHECK AND DISBURSEMENT OF CREDIT
If your application is successful, we perform a quality check. This ensures all documentation is correct
and that we have the right
signatures in the right places. The credit agreement is then concluded.
If it’s a loan, the money is paid into your bank account. Or, if the loan is for external payments, the
money is paid directly to the
third party as noted in your contract. For a credit card, the approved facility is made available and
you can start using the card.
2. COST OF CREDIT
The cost of credit is how much it costs to repay a loan from African Bank. These fees and costs, including
interest, are governed by the NCA . By law, we cannot charge over a certain amount for each of the below:
The cost of credit is how much it costs to repay a Loan from African Bank. These fees and costs, including interest, are governed by the NCA. By law, we cannot charge
over a certain amount for each of the below:
INITIATION FEE MONTHLY SERVICE FEE INTEREST CREDIT LIFE INSURANCE
Once-off fee upon successful Monthly bank charge The interest rate will not be more Compulsory for African
credit application. for administering your account than the maximum rate set by the Bank customers who
NCA at the date that seek credit from us.
the agreement was signed.
NOTE: These fees and costs do not include the repayment of the actual amount (principal) you borrowed.
LoanContract
Page 2 of 8
IMPORTANT FACTS ABOUT INTEREST
The higher the interest rate, the higher your monthly repayments and the more your loan will cost
in total. As the customer, you have the right to look for a fair interest rate that you are happy with.
The longer you take to pay back the loan, the lower your monthly payments will be. But there’s a
catch: a longer repayment term will increase the total amount of interest.
The cheapest way to repay your loan is by paying it off quickly.
FIXED INTEREST AND VARIABLE INTEREST
African Bank loan agreements have a fixed interest rate. This means your monthly repayments
will stay the same, even when interest rates change. But, African Bank Credit Card has a variable
interest rate, which means the interest rate goes up or down, tracking changes in the repo rate.
The repo rate is set by the South African Reserve Bank and is the rate at which they lend money
to commercial banks.
3. CREDIT SCORE & CREDIT RECORD
CREDIT PROFILE
African Bank is not a credit bureau, it is a credit provider.

Credit bureaus are separate organisations that profile your
creditworthiness based on past behaviour.
If – in the past two years – you missed payments or defaulted, the

credit bureaus may have this information on your credit record.
And if – in the past five years – you had a judgement against you,
then this too could be on your credit record.
African Bank, like most credit providers, has a scoring system

based on your credit record. This helps us decide who we lend
to and at what rate. A low credit score means you will pay more
interest for a loan, or you may be refused a loan altogether.
African Bank customers can get their credit report free from the
App, from a branch or from the website.
HOW TO VIEW YOUR CREDIT SCORE, PAYMENT PROFILE OR JUDGEMENTS ON THE WEB
You must be an African Bank customer and must register for internet banking.
• Login to http://www.africanbanking.co.za and

• Click on ‘My Accounts’.
• Here you will see options for ‘Get Credit Report’ and ‘Judgements’, should you have any.
For help, call Customer Services (0861 111 011).
LoanContract
Page 3 of 8
You have the right to question information on your credit record.
Contact the credit bureau and tell them you want to dispute information on your
credit record. The process may involve filling out a dispute form.
● • Experian Credit Bureau: 0861 105 665

● • TransUnion Credit Bureau: 0861 482 482
● • CompuScan: 0861 514 131
If you are not satisfied with the credit bureau findings, contact the
National Credit Regulator (NCR): 0860 627 627
4. REPAYING CREDIT
1. DEBIT ORDER MANDATE
As part of the credit agreement you may be asked to sign a mandate for a debit order agreement that gives African
Bank permission (authorisation) to take the instalment from your account every month on a certain day.
2. DUE DATE FOR INSTALLMENTS
For both a loan account and a credit card, your first instalment is due seven days after African Bank paid your money
over or activated your credit card. However, if your salary date falls within those seven days, then the first instalment is
only due on your next salary date.
All further instalments are due on the first day of every month. However, African Bank will – where possible – show
flexibility by aligning your instalment date with your salary date.
3. CHECK YOU STATEMENT
Check that your statement is correct and that it reflects your payments thus far. You can receive your loan statements
monthly or quarterly (every three months) via email, MMS or by post. Credit card statements are always sent out
monthly.
For any queries or updates on your statement contact Customer Services: 0861 111 011. You will be asked to verify your
identity; this is for your privacy.
4. PAYMENT OPTIONS
You can make payments via:

Debit order: Make sure there is enough money in your account to cover the debit order; if not, your bank may charge
you for a bounced debit order and it could reflect negatively on your credit record.
● EFT: Use internet banking, or a banking app, to transfer the money.

● EasyPay or Pay@: Check the EasyPay or Pay@ reference number on your statement to pay at a shop that has this facility.
● Online Payments: Visit http://www.africanbank.co.za
● Mobile Payments: Dial *120*225# from your cellphone and follow the prompts.
● Branch Payments: Pay using a bank card at any African Bank branch. Or pay in cash at selected branches that have Cash Acceptor Machines.
5. WHAT TO DO IF YOU ARE STRUGGLING TO MAKE PAYMENTS
You should not sacrifice the basics of food and shelter to pay debt. If you are struggling to pay your monthly instalments,
then speak to us as soon as possible. Draw up a budget and work out how much you can afford to pay. African Bank will
consider the following options, based on your personal circumstances, as well as your repayment behavior:
A payment arrangement is when you come to an agreement with your credit provider to change how you repay your
loan, possibly paying less each month and extending the loan over a longer term. To discuss a payment arrangement,
call us on 011 207 4500 or 011 564 7200 .
Claim on Insurance: Your Guardrisk Life Limited Insurance Policy may cover either your payments for a maximum
period of up to 12 months in the event of temporary disability, lay off, short time, compulsory unpaid leave, loss of
income or retrenchment or your full debt outstanding balance in the event of death or permanent disability. For help,
call Insurance Claims on 011 564 6827 / 0861 888 786.
Debt counselling: If you need the help of an independent debt counsellor, first ask about the cost. Contact the NCR on
LoanContract
Page 4 of 8
0860 627 627 for a debt counsellor in your area
6. EARLY SETTLEMENT OF CREDIT
You can pay off your loan in full any time you like. Dial *120*225# from your registered cellphone and follow the
prompts for a settlement amount or call Customer Services (0861 111 011) . Your settlement amount is different from the
outstanding amount on your account statement. Your settlement amount includes all interest and charges up to and
including the settlement date.
Your settlement quotation expires after a certain time. If it has expired, you must get a new quotation before settling.
Note: If your account is being managed by attorneys or debt collectors, you must contact them directly for the
settlement balance as there may be outstanding legal charges on your account.
7. BENEFITS OF PAYING IN TIME
● • It helps you keep a good credit record.

● • It will be easier and cheaper to get loans in the future.
● • You will avoid default fees and charges.
● • You may qualify for Choose your Break, a feature on certain African Bank loans that gives you a break from payments.
5. CREDIT INSURANCE
Credit life Insurance is essential when you apply for credit from African Bank. You can buy Credit life insurance
from our recommended insurer or can use your own insurer provided that African Bank approves your policy
benefits.
Have peace of mind that your credit obligation will be covered during the term of their loan, should they be
affected by any of these loss of income events.
CREDIT CUSTOMERS WHO ARE FORMALLY EMPLOYED WILL BE COVERED FOR:
● Death* : We settle your outstanding credit balance so your family will not be burdened by
your debt.
● Temporary Disability: We cover your credit repayment while you are disabled and unable
to work or earn an income for up to 12 months.
● Permanent Disability* : We settle your outstanding credit balance.
● Retrenchment : We cover your credit repayment, while you are unemployed, for up to 12
months.
● Lay off / Short time / Compulsory unpaid leave / Loss of income: We cover your credit
repayment while your income is affected, for up to 12 months.
CREDIT CUSTOMERS WHO ARE SELF EMPLOYED OR ON PENSION WILL BE COVERED FOR:
● Death* : We settle your outstanding credit balance so that your family will not be burdened with your debt.
● Temporary Disability: We cover your credit repayment while you are disabled and unable to work or earn an income for up to
● 12 months.
● Permanent Disability* : We settle your outstanding credit balance.
● Make sure that you will be covered by keeping your credit repayments up to date so that your credit life policy will be active when you may need to claim
● African Bank requires that customers who take out a Loan with us have life insurance
● You can buy life insurance from our recommended insurer or can use your own insurer provided that African Bank approves your policy benefits. Should you die or
become permanently disabled, the insurer will pay African Bank directly for the outstanding Loan amount or Credit Card debt.
INSURANCE COVER FOR THOSE WHO ARE FORMALLY EMPLOYED
● Death : We settle your outstanding Loan amount and/or Credit Card debt.
● Temporary disability : We pay your instalment or monthly Credit Card payment while you are disabled, up to a maximum period
● of 12 months.
● Permanent disability : We settle your outstanding Loan amount and/or Credit Card debt.
● Retrenchment: We pay your instalment or monthly Credit Card payment while you are retrenched, up to a maximum period of 12 months.
● Short time / Lay off / Compulsory unpaid leave / Loss of income: If your income is affected by more than 20%, we pay your instalment or monthly Credit Card
payment, while you are affected up to a maximum period of 12 months.
● Remember: If you are self-employed, you will be covered for death, permanent or temporary disability only.
LoanContract
Page 5 of 8
Please inform the African Bank Insurance Advice team should your employment situation change.
INSURANCE PREMIUMS
Your insurance premium changes according to the amount of money you owe African Bank. The insurance premium on your Credit Card
is calculated daily as a percentage of your outstanding balance and is charged to your account at the end of each month.
Your insurance premium on your Loan is calculated as a percentage of outstanding debt and is also charged to your account at the end
of each month. The insurance premium is calculated, as R4.50 per R1000 of my original principal debt in terms of the credit agreement.
The premium is included in the total monthly instalment payment. Check your statement to see what your insurance premium costs are.
If you have selected the Guardrisk Insurance Policy, please pay attention to the category that you fall under.
Benefits differ for each category. For queries on insurance cover, call the Insurance Advice Call Centre (086 111 2965) or refer to the
Guardrisk Master Policy , available at any African Bank Branch and African Bank website.
All the insurable events listed above only apply while there is still an outstanding balance on your African Bank Loan or Credit Card and
the policy has not lapsed due to non-payment. Check the African Bank Credit Life Policy for terms and conditions.
WAITING PERIOD TO CLAIM
● No waiting period to claim for death or permanent disability .
● There is a 90 day waiting period before you may claim for retrenchment, loss of
income, short time, lay off or compulsory unpaid leave.
INSURANCE EXCLUSIONS
Death or disability
● Pre existing medical conditions 12 months before commencement of credit life policy
● Participation in crime
● Wilful self inflicted injury or Suicide / alcohol abuse / drugs or narcotics
● Participation in hazardous activities
Retrenchment or loss of income

● 90 day waiting period
● Dismissals / misconduct
● Suspensions
● Participation in unprotected strikes
● Employment contracts ended
● Voluntary retrenchment
● Voluntary Retirement
● Resignation
● You were aware of retrenchment before taking out the credit life policy
Insurance will not cover you in the event of retrenchment if:

● You lose your job because of a disciplinary dismissal or resignation
● You lose your job because of a strike or lockout.
● You lose your job within 90 days of taking a Loan or Credit Card.
● You forfeit your salary voluntarily.
● You agree to voluntary retrenchment.
● You resign from your job.
● You retire.
● You were aware of your impending retrenchment up to three (3) months before your Credit Life Cover
started.
Insurance will not cover you in the event of death or disability resulting from:
● Willful self-inflicted injury or suicide.
● Active participation in warlike operations, rebellion, revolution, criminal activities or hazardous
activities.
● Use of nuclear, biological or chemical weapons.
● Any pre-existing medical condition that you were aware of up to 12 months before your Credit Life
Cover started.
● Your insurance policy may lapse due to non-payment of your insurance premiums.
Please read through the African Bank Credit Life Policy for more information
HOW TO CLAIM ON CREDIT LIFE INSURANCE

● To obtain a claim form and submit a claim, please contact our Customer service centre:
LoanContract
Page 6 of 8
● Tel: 0861 111 011 / 011 207 4500 •Email: CExperience@africanbank.co.za
● Operating hours: Monday-Friday: 8:00 to 19:00. Sat & Sun: 8:00 to 18:00
● Visit your nearest African Bank branch or www.africanbank.co.za
● You can either submit your claim via Customer service centre:
● Tel: 0861 111 011 / 011 207 4500 •Email: customerdocuments@africanbank.co.za .
● Via an African Bank branch or www.africanbank.co.za
● Please take note that African Bank staff may assist with the process, but are not authorised to reject or refuse your claim.
● The contact details for our Insurance Claims Department are as follows:
● African Bank Insurance Claims Department, 59 16th Road, Halfway House, 1685 Private Bag X170, Midrand, 1685
● Credit Life Queries : Tel : 0861 888 786 / 011 564 6827 •Email: InsuranceClaims@AfricanBank.co.za
● Operating hours: Monday-Friday: 8:00 to 17:00 & Saturday: 8am-13pm
● Claims assessment (i.e. the decision to reject or refuse) will be done by our Claims Department.
WHO DO I CONTACT IF I HAVE A QUERY OR NEED ANY ADVICE ON AFRICAN BANK’S INSURANCE REQUIREMENT OR THE GROUP
POLICY?
Should you have any query regarding insurance or submitting a claim, please contact our Insurance Advice Call Centre on
0861 112 965.
Please note that African Bank staff are only entitled to provide you with the insurance leaflet, and are allowed to give you
factual information relating to the insurance cover but cannot give you any advice.
● Get a claim form from your nearest African Bank Branch , or download from www.africanbank.co.za
● Submit the form and required documents to an African Bank Branch , or fax 011 207 4774
● Email: insuranceclaims@africanbank.co.za
● You can also submit funeral claims to a Branch or fax 0816 800 731 or email funeralplanclaims@africanbank.co.za
● Funeral claim enquiries: 0861 007 967
6. FINANCIAL HEALTH
BUDGETING
Budgeting is about taking control of your money and spending less than you earn.
Budgeting helps you stay focused on your money goals, save for the future and recognise
potential problems before they become unmanageable.
Make a budget by listing your income and your fixed expenses and calculating how much spare
money you have left over for luxuries and entertainment.
Cut back on expenses and plan your spending to stay within your budget.
LoanContract
Page 7 of 8
ENQUIRIES & COMPLAINTS FOR AFRICAN BANK LOANS & CREDIT CARD
For all queries and complaints, contact your nearest African Bank branch or the Customer Services Centre
at 0861 111 011.
African Bank has a Customer Advocate’s Office dedicated to ensuring customers receive
fair treatment from us. If you have gone through all our internal processes and are still unhappy
with how you have been treated, then contact:
National Credit Regulator: 0860 627 627

Or the Ombudsman for Bank Services: 0860 800 900
AFRICAN BANK CONTACTS REGULATORY BODIES
● Sales Call Centre (Credit Applications): 0860 333 004 ● National Credit Regulator: 0860 627 627 or www.ncr.org.za
● Customer Services Contact Centre: 0861 111 011 ● The Ombudsman for Banking: 0860 800 900
● Collections Call Centre (Payment Arrangements): 011 207 4500 ● The Ombudsman for Long Term Insurance: 021 657 5000
● Insurance Enquiries: 086 111 2965 ● The Office of the Ombudsman for
● Credit Life Queries and Claims: 011 564 6827 Financial Service Providers: 0860 324 766
● Funeral Claims: 0861 007 967 ● The National Consumer Commission: 086 026 6786
LoanContract
Page 8 of 8

Money Matters.

Uploaded by

Copyright:

Available Formats

Money Matters.

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Money Matters.

Uploaded by

Copyright:

Available Formats

CONTENT INDEX

WELCOME TO AFRICAN BANK

1. CREDIT APPLICATIONS IN 3 STEPS:

APPLYING FOR CREDIT

CREDIT EVALUATION AND APPROVAL

SIGNING THE STATEMENT:

QUALITY CHECK AND DISBURSEMENT OF CREDIT

INITIATION FEE MONTHLY SERVICE FEE INTEREST CREDIT LIFE INSURANCE

The cheapest way to repay your loan is by paying it off quickly.

FIXED INTEREST AND VARIABLE INTEREST

3. CREDIT SCORE & CREDIT RECORD

African Bank is not a credit bureau, it is a credit provider.

If – in the past two years – you missed payments or defaulted, the

African Bank, like most credit providers, has a scoring system

• Login to http://www.africanbanking.co.za and

For help, call Customer Services (0861 111 011).

● • Experian Credit Bureau: 0861 105 665

1. DEBIT ORDER MANDATE

2. DUE DATE FOR INSTALLMENTS

3. CHECK YOU STATEMENT

You can make payments via:

● EFT: Use internet banking, or a banking app, to transfer the money.

5. WHAT TO DO IF YOU ARE STRUGGLING TO MAKE PAYMENTS

6. EARLY SETTLEMENT OF CREDIT

7. BENEFITS OF PAYING IN TIME

● • It helps you keep a good credit record.

CREDIT CUSTOMERS WHO ARE FORMALLY EMPLOYED WILL BE COVERED FOR:

INSURANCE COVER FOR THOSE WHO ARE FORMALLY EMPLOYED

WAITING PERIOD TO CLAIM

● No waiting period to claim for death or permanent disability .

Retrenchment or loss of income

Insurance will not cover you in the event of retrenchment if:

HOW TO CLAIM ON CREDIT LIFE INSURANCE

National Credit Regulator: 0860 627 627

AFRICAN BANK CONTACTS REGULATORY BODIES

You might also like