There are times when a personal loan can be a good credit option – for example, to cover an unexpected expense, or a purchase that improves your quality of life. If you do need a loan, however, always go to a registered financial services provider who will ensure you are able to afford the loan payments. If you’ve decided that a personal loan is the better money choice to meet your current need, you’ll also want to investigate tailored interest rates from a reputable lender – and any promotional perks that come with the loan. If this describes you right now, consider Nedbank’s R200 cashback offer.

The R200 cashback offer

If you apply and qualify for a personal loan payable over 12 months or more and open a MiGoals Plus or MiGoals Premium bank account at the same time, Nedbank will pay R200 every month into your newly opened MiGoals account, for the duration of your loan term. 

There are terms and conditions attached to this promotional offer, of course. For example, the cashback payment is conditional on you keeping your loan payments and any fees or charges on your MiGoals account up to date.

Understanding responsible credit use

We need to be clear: borrowers who have already done their homework and decided that a personal loan is a good money choice to meet their need would benefit from the R200 cash offer. A cashback promotion shouldn’t entice you to take out a loan if you don’t need it or can’t afford it.

That said, don’t believe the myth that a loan is always a sign of poor financial management. We all need a helping hand from time to time, and credit doesn’t have to be scary if you manage it correctly. Managing credit responsibly and keeping an eye on your credit score is a good money habit, just like balancing your income and expenses, planning your savings and investments, and developing your retirement strategy. In fact, taking on an affordable amount of credit and managing it responsibly can strengthen your credit score and give you easier access to more credit when you need it.

Responsible credit use is a matter of not taking on more credit than you can afford and paying your loan instalment on time each month. If you’re a member of the Greenbacks programme, setting up a debit order to make sure you never miss a payment can even get you an entry into a competition draw – if your name is drawn, Nedbank will pay off the outstanding balance on your loan up to R1,5 million.

Use the cashback any way you like

You can use the R200-a-month cashback any way you choose. The monthly fee on a MiGoals Plus account is R99, so you could use it to pay for this and still have some change to do with as you like.

Or you could put R200 towards increasing your loan payments above the minimum amount. You’ll pay off your loan faster and save money on interest. You could decide to put your monthly cashback into an investment account so that by the end of your loan term, you can afford a deposit on a car, or to get the furniture or appliances you need to complete your home.

You could even choose to deposit your cashback in a long-term investment or add it to your monthly tax-free savings – you’re allowed to save up to R36,000 a year and R500,000 over your lifetime in tax-free accounts. Long-term investments are for important goals like your children’s education or your retirement, so boosting those savings by R200 a month can help you to achieve your goals quicker.

Or you could decide to spoil yourself and buy a different personal treat with the cash every month, maybe a takeaway meal, going to the movies or an Uber ride. Whatever you choose, the money is yours to use as you wish, however you wish to reward yourself for sticking to your money goals.

If you need a personal loan and you’d like to take advantage of this offer, apply today.