What is revolving credit? Revolving credit is a type of credit that does not have a fixed number of payments, in contrast to instalment credit. It usually involves a financial institution allowing a customer access to money up to an agreed credit limit. The customer has access to the funds when needed.
How does the Absa revolving credit facility work? Well, it works in a similar way as described above. Absa offers an on-going loan facility up to an agreed amount.
To re-borrow funds, you need to have paid back 15% of the approved loan. When you re-borrow funds, you can only apply back to the approved limit. The benefit is that you can do so without affecting your monthly repayments.
Benefits of the Absa Revolving Credit Facility
- On-going access to funds between R15,000 and R350,000
- The term is indefinite which means you will continuously have access to funds without re-applying
- Fixed Monthly installments
- Credit Protection plan to settle outstanding balance in the event of disability or death
- Interest rates based on your individual risk profile
- Additional deposits are accepted as capital reductions which helps to pay your loan faster
Requirements To Apply For Absa Revolving Credit
The requirements to qualify for the revolving credit from Absa are not very difficult to meet. The only downside is that you have to be an Absa client in order to apply.
You must be 18 years or older with a valid South African ID document or smart card.
Proof of residence will also be required. This can come in the form of a municipal or rates bill and cellphone statement.
In addition to the above, you will also need to be earning a monthly income of R8,000 or more.
Should you apply for this facility? Absolutely! Life is unpredictable and you never know when you will need emergency funds. If you are an existing Absa client why not apply for the Absa revolving loan and use it when that rainy day comes.
Application can be done online at www.absa.co.za or you can call Absa on 0860 100 372 or visit your nearest branch.