Absa Personal Loan: How to Apply

For many years, Absa Bank has been a trusted partner in providing a variety of financial services to customers. If you’re considering personal loans or check-off loans, why look elsewhere when you can rely on Absa Bank?

While Absa operates across many African countries, this article will focus on exploring their loan services specifically in South Africa and Kenya. It’s important to note that the conditions and requirements for loans vary between these countries. 

So, if you’re thinking about applying for a loan in either South Africa or Kenya, we recommend reading this article to the end to gain a clear understanding of what to expect. Let’s dive in and discover how Absa can assist you in achieving your financial goals! 

Overview of Absa Bank

Absa Bank is a subsidiary of the Absa Group that provides a range of financial services to customers in some countries in Africa. Their services include retail, business, wealth management, corporate, and investment solutions, designed to support individuals and businesses financially. 

Absa Bank is also one of Africa’s largest diversified financial groups and has established itself as a leading Pan-African bank. It has footprints in 15 countries across Africa, with additional offices in the United Kingdom and the United States.

Absa’s mission statement is simple: to empower Africa’s tomorrow through a commitment to sustainable outperformance and positive societal impact. This purpose is reflected in Absa’s strategic approach, inspiring its workforce, engaging customers and communities, and guiding decision-making.

Applying for an Absa Personal Loan in Kenya

The Absa Bank offers what are called check-off loans in Kenya. This is a financing option designed specifically for government employees and employees of companies in partnership with Absa Bank. This personal loan enables borrowers to access funds without the need for collateral or security.

To qualify for the check-off loan, individuals must be employed by a government agency or a company that has an existing agreement with Absa Bank.

Absa Bank PLC check-off loans range from a minimum of Ksh50,000 to a maximum of Ksh6 million. The repayment process is streamlined and is deducted directly from the borrowers’ salaries. 

Eligibility Criteria for Absa Personal Loan

To qualify for an Absa Bank PLC check-off loan, you need the following:

Absa account holders:

• Latest payslip (certified)
• National ID card or passport
• KRA-PIN certificate

‍Non-Absa account holders:

• Last two months’ payslips (certified)
• Bank statements for three months (certified)
• One passport photo
• KRA-PIN certificate
• CRB must be in good standing
• Minimum income of Ksh15,000

How to Apply for an Absa Personal Loan in Kenya

To apply for an Absa Bank check-off loan in Kenya, follow these steps:

Gather loan requirements

First, ensure that you meet the eligibility criteria listed above, like being a government employee or working for a company with an agreement with Absa Bank. 

Then proceed to prepare the necessary documents, like your identification documents and proof of employment.

Visit the nearest Absa Bank branch

To apply for an Absa loan in Kenya, you need to visit the bank. So, locate the nearest Absa Bank branch to you. Bring along the necessary documents and visit during operating hours.

Speak to a bank officer and get the form

Upon arrival, approach a customer service representative or loan officer. Inform them that you are interested in applying for a check-off loan, and get the loan form

Complete application forms

Once you have the form, go on to fill it out. Fill out the forms accurately and completely. Also, provide any additional documents or information as requested.

Submit documents

After filling out the form, submit your completed application forms along with the necessary supporting documents, including proof of employment and identification.

Wait for processing

The bank will take time to review your application and process your loan request. This may involve verifying your employment status and assessing your creditworthiness.

Loan approval

If your application is approved, you will receive a notification from the bank. Review the loan terms and conditions carefully before proceeding.

Disbursement of funds

Once all formalities are completed and the loan agreement is signed, the funds will be disbursed into your account or as agreed upon.

Loan limits and interest rates 

Absa Bank check-off loans in Kenya offer a borrowing range from a minimum of Ksh50,000 up to a maximum of Ksh6 million. The interest rate for Absa Bank check-off loans is set at 13%. You use the Absa loan calculator to calculate.

Other associated fees include a 3.3% processing fee, a 0.66% insurance fee, and a 20% excise duty on the processing fee. A monthly processing fee of Ksh100 is also applicable. These charges are included in the overall loan agreement and contribute to the total cost of borrowing.

Repayment for Absa Personal Loan in Kenya

Absa personal loan repayment can be extended between 12 to 72 months, with monthly installments deducted directly from your salary by your employer. Repayment is structured as follows:

Repayment frequency

The repayment schedule for the check-off loan is monthly. Loan installments are deducted directly from your salary through the check-off system, which means repayment is automatic. 

Early repayment option

Absa Bank also allows borrowers to make early repayments if they wish to settle the loan before the scheduled term ends. This flexibility enables borrowers to save on interest costs and manage their finances more efficiently.

Applying for an Absa Loan in South Africa

Applying for an Absa loan in South Africa differs from Kenya in several ways. In South Africa, you do not necessarily need to be a government employee or employed by a specific company partnered with Absa Bank to apply for a loan. 

Absa Bank in South Africa offers loans to a broader range of individuals, including employed and self-employed individuals. You are eligible for an Absa personal loan once you meet the bank’s eligibility criteria. 

Moreover, the application process for Absa loans in South Africa provides more flexibility, with multiple channels available. In addition to visiting a physical branch, applicants in South Africa can also apply for loans online through the Absa Bank website or mobile app. 

Requirements for Applying for Absa Loan in South Africa

To apply for an Absa loan in South Africa, you will need the following documents:

ID Book or Card

Provide a valid South African ID book or ID card as proof of your identity.

Proof of residence

Submit a document that serves as proof of your current residential address. This document should not be older than 3 months and can include utility bills (e.g., water or electricity bills), a lease agreement, or a municipal rates statement.

Last 3 months payslips or bank statements

Though you don’t have to be an employee to get an Absa loan in South Africa, the bank still needs to confirm that you can repay your loan. 

Include your most recent payslips covering the last 3 months or bank statements that show your income deposits over the same period. This helps to verify your ability to repay the loan.

Absa provisional personal loan offer

If you’re already an Absa customer, you may have a provisional loan offer available. You can see if you qualify online.

Eligibility for Absa loan in South Africa

You can either apply for a personal loan with a repayment plan of 12 months or a small loan that you can repay over 2 to 6 months. Both loans have different eligibility requirements. See below: 

To apply for a personal loan over 12 months or more, you need to:

• Earn a regular monthly income of at least R2 R2,000 per month
• Have a bank account into which your income is paid
• Be 18 years of age or older

To apply for a smaller personal loan over 2 to 6 months, you need to:

• Earn a regular monthly income of at least R1,500 per month
• Have an active Absa bank account into which your income is paid
• Be 18 years of age or older

Absa Personal loan application Process in South Africa

You can apply for an Absa loan in South Africa through the following channels:

• The Mobile Banking App
• Online
• Through the branch 
• By calling 0860 100 372.

What could my loan installments be?

Repayment term

From 12 to 84 months (from 2 months for current Absa customers)

Interest rate

Personalized Annual Percentage Interest Rate (APR), starting from a minimum of 13,75% per annum.

Estimated interest repayment

The estimated monthly repayment on an R50,000 loan taken over 36 months at an interest rate of 18% per annum would be R2,113, Including all service and initiation fees.

Conclusion

There is nothing like having your bank be there for when you need it the most. Whether you are in Kenya, South Africa, or any African country with an Absa Bank, you should reach out to them to check out their loan offerings and requirements. 

If you are from Kenya or South Africa, you are in luck, as we have covered most of everything you need to know in this article, from requirements down to repayment. 

FAQs

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