How a first-time personal loan application works

A lack of money shouldn’t stop you from chasing your dreams, and an emergency expense shouldn’t wreck your budget. Managed wisely, an affordable personal loan can count as a better money choice. If you have a need or a dream that a personal loan will help you achieve, you can even apply online

Put your financial plan into action in 4 steps

Step 1: Decide what your financial need is

What do you need the loan for? Do you want to buy a second-hand car, or renovate or refurnish your home? Do you want to consolidate other debts, or do you need cash to pay for an unexpected expense? Are you going to finance a side-hustle as another income stream? How much do you need, and how urgent is your need?

It’s essential to answer these questions before you apply for a loan – neither you nor the bank can tell if a loan will be affordable until you know how much you need to borrow.

Step 2: Choose the best loan option for you

Be prepared to look around and see what options various financial institutions are offering with a loan – like Nedbank’s R200 cash back offer when taking up a personal loan and a Savvy account. 

Realistically, the size of the loan you can afford depends on how much you can afford to repay every month. The repayment term is also a factor: if you pay back a loan of, say, R10,000 over 12 months, your monthly payments will obviously be higher than they would if you paid the loan off over 24 months.

You can get an idea of monthly payments using our loan calculator. If the amount you need is unaffordable on a short-term loan, you may want to look at a loan term of 24, 48 or even 60 months, this will help you align to a monthly instalment that is within your budget. .

Taking a personal loan comes with the responsibility to use debt wisely. If you’ve considered the options seriously and decided that a loan is the solution to your present financial needs, apply only at a registered financial services provider. At Nedbank, we’ll tailor the details of the loan to your individual needs, to help you avoid taking on more debt than you can afford.

Step 3: Apply for a personal loan – what do you need? 

To apply for a personal loan, you need to comply with the Financial Advisory and Intermediary Services (FAIS) Act – which protects you and the loan provider. Among other protections, this law states that you must have employment and a valid South African Smart ID card or barcoded identity document to be granted a loan. 

The application process itself is simple – you can apply for a loan conveniently through your laptop or mobile device.When you apply, you will also need to upload certified copies of the following documents: 

  • Your most recent payslip (or a letter of employment if you are contract worker)
  • 3 months’ verified bank statements
  • Proof of residential address

Step 4: Repaying your personal loan

Once your loan application has been approved, the money will be deposited into the account you stipulated in your loan agreement. In most cases you will have to agree to a debit order for payment of your monthly instalment – something you should consider even if it’s not a requirement, because it means you’ll never miss a payment and protect your credit score.

Nedbank offers personal loans from R2,000 up to R300,000. You can qualify for a personalised interest rate and repayment terms of 6 to 72 months, depending on your credit score.


Did you know that if you take out a personal loan and open a Nedbank Savvy Plus or Savvy Bundle Account, you can get R200 a month cash back for the duration of your loan? For an affordable loan tailored to your circumstances and value-added extras like cash back, choose the bank that’s best for your money.