Introducing the Old Mutual Zero Interest Loan (RSA)

The Old Mutual Zero Interest Loan offers South Africans a straightforward way to access funds without worrying about interest charges. This product stands out due to its zero interest feature.

While terms may change, the primary requirement is that your loan is linked to your existing Old Mutual plan or savings benefit. The amount you can access depends on regulations and the value in your plan.

You can repay the loan at any time and in flexible instalments, provided these meet Old Mutual’s minimum repayment requirement. All payments are to be made in ZAR at Old Mutual’s principal business location.

It’s important to note that your plan or benefit cannot be pledged or ceded to another party until the loan is settled. Should specific triggers like benefit payouts or insolvency occur, your loan becomes due immediately.

Step-by-Step Application Process

1. Check that your plan meets eligibility requirements for a zero interest loan under Old Mutual’s savings or risk products.

2. Confirm your plan is not ceded, your estate is not sequestrated, and that you satisfy the qualifying criteria.

3. Complete the official loan declaration form provided by Old Mutual, ensuring all information is accurate.

4. Await assessment of your application and, if required, provide any additional documentation requested.

5. Receive funds either as a lump sum or instalment, as per Old Mutual’s discretion and your agreement.

Major Advantages

The key strength of this loan is its zero interest rate, which means you repay only what you borrow with no added cost. This reduces the repayment burden significantly.

Flexible repayment options and the ability to pay back in lump sums or as frequent as you wish make administration much easier for busy individuals.

Some Drawbacks

The major limitation is that you need to have an existing qualifying Old Mutual plan. Additionally, there are regulations that might limit the actual loan sum you receive.

There could be transaction administration fees, plan amendment charges, or reduction fees applicable depending on the type and history of your plan.

Final Verdict

The Old Mutual Zero Interest Loan is best suited for current Old Mutual clients needing short-term liquidity without incurring interest. The application process is clear and the absence of interest is a key win.

If you anticipate a need for instant funds and already have an Old Mutual savings benefit, this offer is worth considering for its transparency and low cost.