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Apply for a Capfin Loan at PEP Stores

Capfin Loans at PEP Stores

PEP offers Capfin personal loans through all PEP stores in South Africa loans of up to rR10 000. Capfin Loans do not require stringent requirements like bank statement and loan guarantees

The Capfin loans have been designed to suit PEP customers who need hassle-free loans that are backed by an efficient, simple and trustworthy service. Loan applicants need only a South African ID, a cell-phone and a monthly salary paid into their bank account in order to qualify.

Customers apply by having their ID book scanned and providing a cellphone number at any PEP store in South Africa.You will receive an SMS within 30 minutes acknowledging your application and Capfin will then call the customer to process a quick telephonic application.

If the loan is approved, the cash will then be paid into the applicant’s bank account within two days.

Old Mutual Debt Consolidation with My Money Plan

Old Mutual debt consolidation loans offer a chance to pay off all your debts. It gets all your current creditors off your back while giving you only one installment to service. Usually the instalment will be less than what you’re currently paying on all your debts because the debts will be spread out over a longer period. There are also some cost savings – instead of monthly administration fees and other charges on each of the credit agreements, you now only have one agreement.

Old Mutual My Money Plan

My Money Plan is Old Mutual Finance’s flagship product that allows you to consolidate your debt, combining it into one plan so that you pay a lower overall instalment. This allows you to reduce your finance charges and increase your available cash, as My Money Plan also provides you with regular cash payouts when you need them most.

Old Mutual Debt Consolidation with My Money Plan  gives an opportunity of a loan of up to R120 000 over a maximum of three years to settle all your short-term debts. The interest rate on the loan will be between 17% and 32%, depending on the state of your credit record. This means  that all your short term debts are consolidated into one and you make one payment to Old mutual at a lower interest rate.

You need to have worked for at least year with the same employer, who must have been in business for at least three years. Old Mutual Finance will pay off all your debts like store and credit cards, but crucially – while it will advise clients to do so to avoid running up more debt – there isn’t a requirement to close your accounts.

Get in touch with Old Mutual Finance now and consolidate all your debts.


Ceding your Life cover policy for a mortgage bond

When you take out a mortgage loan, the bank will often stipulate in its contract that you take out a life insurance policy – or cede one you already have – to cover the loan should you die.

But can a bank force you take out life insurance cover? If so, must the policy be bought from a broker of the bank’s choice and, if you are already covered, are you required to cede your policy to the bank?

Dave Crawford of Rigel Planning Systems says Section 23C of the Insurance Act rules that banks are within their rights to request a borrower to have sufficient life cover to cover a mortgage bond should the borrower die.

But, says Crawford, this matter is negotiable by the borrower and the lender.

Banks are required to take into consideration the debtor’s creditworthiness and any security offered by the client before insisting on life cover.

Should the debtor need a life policy, the creditor is allowed to request that it be ceded to the bank.

Crawford explains that this is because the only way a bank can ensure the client reserves the life insurance for the purpose of covering the mortgage bond in the event of death is by asking the client to cede the policy to the bank.

Banks are, however, not allowed to insist that life insurance policies are bought from one of their brokers.

This is often not made clear to the client, says Crawford. “Many borrowers feel the implied threat that if they don’t buy the policy through the lender’s broker they may not get the bond,” he says.

According to the Act, the lender must inform the borrower that, although a policy is required as a condition of the loan, there is absolute freedom as to which life company is chosen, or which broker or agent is used.

Many potential home owners wonder if it is really necessary to buy life insurance cover when they apply for a mortgage bond.

Crawford says it is: any bond taken out in your name carries a certain amount of risk.

If, for example, your estate is illiquid when you die, a forced sale of your property may be required to pay back the bond – to the possible detriment of both your estate and the bank.

Life insurance will cover this, as well as any downturn in property and rental values from

Age Limit for Loans

Too old for a loan?

Johannesburg –’s Money Clinic recently received this query:
“I am over 75 and selling a house which should net me R1m. I am marginally overdrawn with Nedbank and applied for a loan as advertised; despite offering the unmortgaged deeds of five properties as security, the loan was refused as I was over 75. The bank manager would also increase my authorised overdraft. I was told there was some credit available on my Visa credit card and I would have to live on that. I have banked with Nedbank for 25 years. Will another bank lend me money?” the user asked.


“Although the National Credit Act does stipulate that one cannot be discriminated upon when applying for finance on grounds of race, religion, sex and age, it is the bank’s discretion to approve or decline loans”, said Uzile Gugushe, marketing officer of Ombudsman for Banking Services. “No one can compel banks to approve or grant loans.”

Gugushe said Nedbank has a loan age limit of 63, because their minimum repayment period is 24 months. “They do not approve loans to people who are 64 years old and older, as these persons would be turning 65 in a year’s time and would be retiring or retired.”

Absa and Standard Bank do not have an age limit for their loan applications, but they will look at the risk profile of the applicant.

Look beyond banks

“I would advise the customer to look for other banks to seek loans from, and to bear in mind that risk profile would be the determining factor. I would also advise the customer that banks are not the only financial institutions that grant loans. Other non-bank financial institutions – like insurance companies – do have loan facilities, and he could contact them,” Gugushe said.

Gerrit van Heerde of Sanlam Personal Finance said Sanlam does not place any age limit on loans – but there are other criteria. One requirement of the National Credit Act is for clients to pass an affordability test, and to prove that they will be able to repay the loan.

Capitec Bank does have loans options available to people receiving a monthly pension, said Sumarie Brand of the microlender’s corporate affairs division. “Pensioners that receive their monthly pension payment in a Capitec Bank account have more credit options than those that don’t. “Capitec Bank offers unsecured lending and our business model provides and determines credit amounts and terms available to each individual on that specific individual credit and risk profile, as per our business model’s formula.”

In reality, few banks will be eager to lend to older people. And few pensioners will be able to pay back longer-term loans without difficulty, said Paul Rosenbrock, a director of the SA Association of Retired Persons.

In his experience, many people who retire comfortably find that after 10 years they struggle to cope financially, as medical expenses start to bite and inflation chips away at their savings. “It is a very big problem.”

Many think that they can sell their property and use the proceeds to tide them over, but that can be uneconomical, said Rosenbrock.

Reverse Mortgage Option:

The cost of selling a house of R1m can run up to R250 000 if estate agent commission, moving expenses, transfer fees, bond registration costs and other charges are considered, he said. Another option for older people is a reverse mortgage. This involves taking a big loan with your house as security. The bank usually pays you a tax free amount, which is then subtracted (with accumulated interest) from the value of your house when it is sold.

Reverse mortgages are popular overseas because they offer pensioners hard cash, while they can stay on in their house.

Usually the reverse mortgage is only paid back when the house is sold or when the owner and his/her spouse have both died. If the amount owed on the house is more than the value of the house, it has to written off in terms of the rules of the SA Home Equity Release Protection Association (Saherpa), a consumer protection organisation. The owner’s estate can’t be liable for the shortfall.

Rosenbrock warns that reverse mortgages are only suitable to a small group of older people – ideally substantially older than 65, “who are property rich and cash flow poor”. An example would be an 80-odd-year old who gets about 30% of the value of a R1m house in cash. Interest of, say, 12.5% is levied on the loan. After 12 years, when the owner and his spouse have both died, the loan amount has run up to R1.334m.

Consider the Pros and Cons:

If the value of the house increased by 3% a year, the home will then be worth R1.425m and the difference (R91 645) will go to the estate of the owner. If the property value doesn’t increase at all over the 12 years, the bank will have to write off R47 000 in terms of Saherpa rules. The big advantage is that the struggling pensioner will get a cash injection, which can be used to buy a life annuity with a monthly payout or settle urgent medical bills.

But the drawbacks are significant, and it should be regarded as a loan of last resort. Interest is usually about 2% above the prime rate and the costs – which can include mortgage registration and professional property valuation fees – are substantial. There is also very little regulation governing the products.

While reverse mortgages were first launched some 90 years ago in the US and are established in many countries, the concept has not gained much traction in SA.

The big banks have reportedly considered reverse mortgages, but only Nedbank initially introduced a product to the market which it ultimately decided to withdraw. While a number of smaller institutions are offering reverse mortgages, only Seniors’ Finance, owned by Alexander Forbes and the New Zealand-based Seniors Money International, is accredited by Saherpa.

Older people in particular have to consult an independent financial adviser before making decisions, said Rosenbrock.


Understanding transfer duty

Whenever someone buys property, the title deed (official documentation that proves you own the house or land) has to be transferred into the buyer’s name. The government charges tax on these property transactions, which is called transfer duty. When you buy only land, you will pay transfer duty only on the land itself. If you buy an existing house, the transfer duty will be for both the land and the home.

The transfer duty of a specific transaction is based on the price of the property itself. A sliding scale determines how much you will have to pay. The higher the price of the property you are buying, the more the transfer duty you’ll have to cough up. If you’re a registered property developer, you pay VAT (value added tax) on property purchases rather than transfer duty (if you buy from a developer, you’ll also pay VAT rather than transfer fees).

From February 2011, transfer fees were as follows (always get the latest information from your bank or estate agent):

Value of property: R0 – R600 000
Duty: 0%

Value of property: R600 0001 – R1 000 000
Duty: 3% on the value above R600 000

Value of property: R1 000 0001 – R1 500 000
Duty: R12 000 plus 5% on the value above R1 000 000

Value of property: R1 500 001 and above
Duty: R37 000 plus 8% on the value above R1 500 000

If you are part of a trust, company or close corporation, you’ll be charged 10 percent transfer duty on the selling price.

When getting a bond and looking for a house to buy, remember to factor in your transfer fees.

How You Can Negotiate Your Mortgage

The number of new foreclosures is rising each day, and most efforts on a national and state level do not seem to be stopping this crisis. The Federal Government has offered generous incentives to lenders in a move to help more homeowners take advantage of loan modification and home counseling services.

According to recent reports, around 70% of those who get home counseling ends up avoiding home foreclosure. In a time when thousands of people are scrambling to prevent foreclosure on their homes, the help extended by these programs is truly valuable.

Majority of the people who end up losing their homes due to foreclosures are the ones who do not really have any idea on what to do in a difficult economic situation. Many of these homeowners would have actually thwarted foreclosure if only they inquired about the available options like loan modification.

If you are struggling to make payments loan modification can provide mortgage payment relief by modifying the terms of your mortgage. Negotiating the best new terms for your mortgage can be a challenge and not everyone is going to get the same results.

Remember the lender does not want your home; they want you to stay and pay your mortgage.

When trying to negotiate a better mortgage for you and your family you need to first know what is negotiable. Most loan modifications include one or more of the following:

Adjustment of the principal balance.
Lowering of the mortgage rate.
Lowering or restructuring of late mortgage payments.
Extending mortgage terms or the length of your mortgage.
Removal or late fees and “junk” charges.

It is also important to remember that any type of mortgage can be modified. Negotiating a mortgage is for any homeowner facing foreclosure or rising debt due to a financial hardship. Loan modification has become very popular but loan modifications or loss mitigation has been a big part of the mortgage industry for many years.

Although loan modification can help prevent foreclosure, the main focus is to make sure your mortgage payments are a lot more affordable and up to date with the value of your home. Drastic drops in home values across the nation have put homeowners in an upside down mortgage, a mortgage in which you owe more than the home is worth.

When negotiating for loan modification, do not be afraid to request for terms that you think will make your new modified loan more favorable to you. If you think that the new payment terms are still not affordable, you can always negotiate for the bank or your lender to lower the rates to a point that makes sense for you. Remember that the objective of loan modification is to make it easier for borrowers to pay for their monthly mortgage obligations, so if you still cannot afford what the bank is suggesting, try to negotiate for more affordable terms.

If you are not a good negotiator or feel a professional can assist you then a loan modification attorney may be able to help. Most loan modification attorneys offer free consultations to hear about your case. If they feel you have a valid case they usually will offer their services.

A loan modification attorney is a unique attorney focusing on the specifics of real estate and foreclosure law. Many homeowners may reach out to the attorney that processed the closing on their original mortgage loan; this type of attorney generally does not practice foreclosure law.

The Financial Intelligence Centre Act (FICA)

The latest and most comprehensive legislation detailing money laundering controls is the Financial Intelligence Centre Act (Fica), the focus of which is on control requirements.

What is Money Laundering?

Money Laundering is the process by which criminals attempt to conceal the true origin and ownership of the proceeds of their criminal activities. Its purpose is to allow them to maintain control over those proceeds and, ultimately, provide a legitimate cover for the source of their income.

Fica creates money laundering control obligations for banks and other institutions and professionals, such as estate agents, brokers, attorneys and insurance companies.

Customer identification is a crucial element of any effective money laundering control system. We must implement reasonable measures for us to know who our customers are and to prevent criminals from using false or stolen identities to gain access to our services.

Since 1 July 2003 banks were required to obtain certain information and supporting documents from new customers before accounts could be opened. Furthermore, Fica requires that banks re-identify their existing customers (those taken on before 1 July 2003).

One of the major elements of the financial institutions obligation is to know their client. In short clients need to be identified by the use of their green bar coded identity book, and they have to prove were they live. This is usually done by means of a utility bill, which is addressed to you at your physical address.

Due to the additional time and paperwork required for this verification, professionals like attorneys are charging for this service. When purchasing a house you will see on the breakdown of your attorney’s fees a line entry for FICA Verification.

Relief for debt counselling applicants

The National Credit Regulator (NCR) hopes that the debt counselling process will function more smoothly in future after credit providers recently signed a code of conduct in which they agree to change how they handle debt restructuring arrangements and to hold off on legal action under certain circumstances.

Credit providers, which include the major banks – Absa, First Rand (First National Bank and WesBank), Nedbank and Standard Bank – started to implement the code of conduct in December last year.

The code states that creditors will implement the repayment arrangements of any debt restructuring plans where debt counsellors have complied with all the legal and regulatory requirements in drawing up the plans. Creditors are also bound by the code to refrain from terminating debt review processes or resorting to litigation where consumers have applied for debt counselling and/or lodged a dispute with an ombudsman.

Peter Setou, the senior manager of education and strategy at the NCR, says the regulator believes the code of conduct will go a long way towards creating a situation in which more consumers who are undergoing debt counselling reach an agreement with their creditors about a repayment plan and do have to resort to court orders.

Creditors also agreed to institute a seven-month moratorium, from November 30 last year to June 30 this year, on legal action in respect of bank debts, including mortgage bonds and vehicle finance, for overindebted consumers who applied for debt counselling before November 30 but who have not yet started the debt counselling process.

The moratorium applies to consumers who have not reached an agreement with their creditors about a repayment plan or who are still waiting for their court cases to be heard.

Setou says that in a few cases the High Court’s interpretation of the National Credit Act (NCA) has differed from that of the NCR.

“In such instances there has been the view that a debt counselling court order or consent agreement must be finalised within 60 days of the consumer applying for debt counselling. Some credit providers have taken advantage of this and chosen to pursue legal action after two months of the consumer’s debt counselling application, on the basis that the matter is unresolved,” he says. The NCR believes this is unreasonable, because in some cases consumers have to wait six months for a court hearing, Setou says.

According to the NCR, more than 200 000 consumers had applied for a debt review by December last year. Of these, about 20 000 cases were resolved through court orders, while a further 26 000 cases are still on the court roll and have not been heard yet.

“We are going to make legislative amendments to the NCA to make it clear that consumers cannot be subject to legal action once they have applied for debt counselling. However, as this process may take some time, the NCR has also applied to the Johannesburg High Court for a declaratory order on this matter,” Setou says.

The moratorium is intended to ensure that people whose debt counselling cases are on the court roll do not lose their homes while they wait for their counselling applications to be finalised through either a consent agreement with their creditors or a court order.

The moratorium applies only to credit agreements with the four major banks and if you meet the following requirements:

* By November 30 last year you had already applied for debt counselling and your case has not yet been resolved; and

* You are repaying your debt. If you are not already doing so, by March 31 this year you must be meeting at least 80 percent of your monthly home loan instalment, 70 percent of your monthly vehicle finance instalment and 1.67 percent of the total balance outstanding in respect of any other debt to the bank.

First National Bank (FNB) clients must meet a further condition: they must be paying a minimum of 50 percent of their debt instalments with FNB.

If between now and March 31 you reduce the debt repayments you are making, you will not qualify for the moratorium, which means a bank will be able to take legal action against you. For example, if you are paying 100 percent of your instalment and you decrease it to 80 percent, you will be disqualified.

The moratorium is aimed at people who cannot meet their monthly repayments. If you are meeting your monthly repayments in full, the banks expect you to continue to do so, unless you make another arrangement with your bank.

If you meet all the conditions of the agreement between the NCR and the banks and you qualify for the moratorium, you will be allowed until June 30 to finalise your debt counselling through either a consent agreement or a court order.


If you suspect that you are overindebted or find that your expenses exceed your income, you can apply to a debt counsellor for debt counselling.

The debt counsellor will assess your financial situation. If he or she concludes that you are in fact overindebted, the counsellor will draw up a repayment plan.

The debt counsellor must notify all your creditors within five days of your application that you are undergoing debt counselling.

In terms of the National Credit Act, creditors may not charge you further interest once the interest and other charges on your debt reach the same level as the outstanding capital amount, regardless of any repayments you make. Previously, if you made a payment towards your debt and, as a result, the amount of unpaid interest fell below the amount of the outstanding capital, a creditor could again charge you interest until the amount of unpaid interest equalled the outstanding capital.

If you and your creditors agree to the repayment plan, your debt counsellor will present the plan to the National Consumer Tribunal for approval. If any of your creditors disagrees with the plan, the counsellor has to refer the matter to the magistrate’s court that has jurisdiction over the area in which you live for an order to restructure your debts. The magistrate will make a ruling after hearing representations from all parties.

The magistrate can:

* Declare one or more of the credit agreements to be reckless and suspend them and/or re-arrange the remaining repayments;

* Reject your application; or

* Order that a revised repayment plan be drawn up.

In order for a credit agreement to be declared reckless, you must be able to prove that you could not afford the credit at the time it was granted and that the credit provider did not take reasonable steps to determine your financial situation or did not check your affordability before granting you the credit.

If you are undergoing debt counselling, it is noted on your credit record and you will not be able to access further credit.


R1.05 trillion: that is how much consumers owed the country’s banks at the end of September last year.

Consumers’ total outstanding debt, which includes money owed to retailers, stood at R1.17 trillion by September last year, according to the most recent consumer credit market report released by the National Credit Regulator in December last year.

The number of credit applications received by registered credit providers increased by 5.1 percent, from 6.54 million in June to 6.87 million in September last year. This was an increase of 18.22 percent from the same period in 2009.

Of the total credit applications to all registered credit providers, the proportion of rejected applications decreased from 40.26 percent for the quarter to the end of June last year to 39.1 percent for the quarter to the end of September last year.

Credit cards, store cards and bank overdrafts were the main drivers of credit facilities. Of the R8.81 billion granted in credit facilities for the quarter to September last year, credit cards and store cards alone amounted to R5.95 billion.

The total value of new credit granted to consumers increased from R67.55 billion for the quarter ended June 2010 to R75.14 billion for the quarter ended September 2010, an increase of 11.23 percent when compared with the previous quarter and 40.23 percent higher than the total credit granted to consumers a year previously.


You can contact your bank directly to find out if you qualify for the moratorium or to suspend any termination and enforcement actions that may already be under way. You can use the following contact numbers:

* Absa – 0861 005 901 begin_of_the_skype_highlighting              0861 005 901      end_of_the_skype_highlighting;

* First National Bank – 0860 111 005 begin_of_the_skype_highlighting              0860 111 005      end_of_the_skype_highlighting;

* Nedbank – 0860 109 279 begin_of_the_skype_highlighting              0860 109 279      end_of_the_skype_highlighting;

* Standard Bank – 0860 439 770 begin_of_the_skype_highlighting              0860 439 770      end_of_the_skype_highlighting; and

* WesBank – 0861 288 272 begin_of_the_skype_highlighting              0861 288 272      end_of_the_skype_highlighting.

Debt Consolidation loan – A blessing in disguise

Debt Consolidation Loans is a financial product, whereby you roll previous debts into a new loan, i.e. you unite several diverse debts into a solo loan.

The function of Debt Consolidation Loans is to condense your monthly outgoings. You take all your existing loans and credit card balances and roll them collectively into one that grants you in minor monthly imbursement. the lesser reimbursement of a loan is usually recognized in two manners. First of all, by reducing the overall rate of interest you shell out and secondly, by distributing the loan repayments over a much longer period of time.

Debt Consolidation in South Africa is on the rise, in fame because of the increasing amount of lenders in the market.

Those loans that are accusing higher rates of interest are substituting with lesser rates of interest or moving to a new credit card via a ‘honey-moon period’ of low interest to disburse off these loans. since, it makes no sense to be paying high interest when you can pay less interest on a loan or outstanding debt.

Several people think that there is no mode to obtain a Debt Consolidation Loans with bad credit; on the other hand, this is not true by any means. There are loads of plans in Australia set up to assist you with your loan albeit, you have no credit or else bad credit.

Bad credit debt consolidation works to a great extent, in the similar manner, in which usual works but the interest rate charged, can be high as the debtor is perceived as high risk.

Once all your non-payments are reimbursed, you can start work on restoring your credit footing. the faster you initiate to mend your credit situation the sooner you will be able to get pleasure from the access to lender products at viable interest rates.

Debt Consolidation – What to watch out for

Debt consolidation packages are created to support consumers who’re in hassle overcome their monetary issues by lowering their month to month payments to an amount they are able to pay for.

 These kinds of plans really are a win-win for that consumer as well as the financial institution given that they allow the borrower to stay away from destroying their credit score and with the same time protecting the lenders from possibly losing their whole mortgage stability to a potential bankruptcy filing.

You will discover various types of debt consolidation plans accessible to most consumers. 1 is a financial debt consolidation agency that works directly with the creditors to change the current loans in a very way that enables the borrower to repay their debts in a very reasonable time frame. And debt consolidation loans which enable the borrower to pay off their large rate of interest debts by securing a lower-rate loan that covers all the exceptional balances.

So how do debt consolidation plans that are provided through a credit score counseling agency or financial debt consolidation firm function? In these kinds of financial debt consolidation programs, the agency or company the client chooses will use a worksheet to obtain a handle around the individual’s income and expenses.

Once they’ve determined exactly how much cash is obtainable each month to spend towards their outstanding loans and credit cards, the organization will get in touch with each on the creditors and operate out an arrangement which will allow the borrower to pay off the debts in excess of an agreed upon time frame. That is generally accomplished by negotiating a lower interest rate, lower payments, and also a lower principal amount.

The creditors are agreeable to those sorts of arrangements because in numerous cases, the alternative is that the debtor (who’s already most likely behind in payments) will flip to something more drastic for debt relief. If the debtor chooses to file bankruptcy, the lenders might be unable to recover anything whatsoever around the excellent balances.

But what about debt consolidation loans? Are these kinds of loans superior financial debt consolidation programs when compared to making use of an agency to handle relationships with creditors?

It all depends upon the phrases in the mortgage. In some cases, lenders who present financial debt consolidation programs that entail a consolidation loan actually charge an interest rate that’s increased than the interest rates of the existing loans or credit cards. They’re in a position to reduced a debtor’s payments even though the mortgage is at a larger charge by scheduling the spend back through an prolonged time frame, maybe ten or 15 many years.

Although the month-to-month payment is less than that of your combined payments of your other loans or cards, inside the lengthy run the borrower pays back again a great deal additional due to the fact the payments are stretched out over a lengthier time frame. While not all financial debt consolidation loans do the job in this fashion, just before you enter right into a mortgage make particular that you just comprehend the total phrases and complete payback quantity.

Financial debt consolidation packages can help a borrower who’s going through economic problems get out of difficulty. Two of essentially the most typical kinds of debt relief packages readily available to customers are credit counseling companies and financial debt consolidation loans. The 1 which you select depends upon which can be greatest for the specific monetary scenario.

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