Introducing the Old Mutual Zero Interest Loan Declaration

Old Mutual’s Zero Interest Loan Declaration allows qualifying South Africans to access loan funds from their plan or savings benefit with no interest charged. The main highlight is that you can borrow against your existing Old Mutual savings policy without worrying about extra interest costs eating into your finances. Instead, you simply repay the amount borrowed, making this loan unique and attractive for those looking for straightforward access to cash.

The loan amount is limited either by how much you request or by regulatory ceilings to ensure compliance and financial stability. This means you cannot borrow beyond permissible levels, and only existing policyholders who meet eligibility criteria may apply. Payments of the loan may be disbursed in more than one instalment, particularly if any debit or stop orders need to be cleared first.

You are encouraged to maintain your regular premium payments throughout the loan period. Repayment is flexible: You can repay in lump sums or in multiple instalments – as long as repayments meet Old Mutual’s minimum amount criteria and are made in South African currency.

How to Apply: Step-by-Step

1. Check your Old Mutual plan to see if you’re eligible.
2. Confirm that your estate hasn’t been sequestered and your policy is not ceded elsewhere.
3. Request the loan declaration form and fill in your chosen disbursement and repayment details.
4. Sign and submit your completed application to Old Mutual for processing.
5. Await approval and subsequent loan disbursement if all requirements are met.

Pros of the Zero Interest Loan

The standout benefit is that this loan carries no interest charges, meaning you only pay back what you borrow, avoiding the compounding costs associated with traditional loans. Another advantage is the flexible repayment schedule, allowing you to repay in ways best fitting your cash flow, either as lump sums or periodic instalments.

Additionally, all repayments can be made any time without penalty or additional notice, helping you stay financially agile. The absence of an interest rate helps you manage short-term financial needs without escalating debt.

Cons to Consider

The loan amount is strictly limited by two factors: your requested amount or regulatory ceilings under the Long-term Insurance Act. This means you may not always access the maximum funds you were hoping for.

Only qualifying Old Mutual plan or savings benefit holders can apply, so this is not an option for those without a relationship with Old Mutual. Further, certain admin or transaction fees may still apply depending on your plan.

Verdict: Is the Old Mutual Zero Interest Loan Worth It?

The Old Mutual Zero Interest Loan Declaration is a practical solution for policyholders needing fast, affordable access to cash. The zero-interest feature makes it highly attractive for responsible borrowing. Its main limitation is eligibility and policy-based lending caps, but for those who qualify, this is a straightforward, cost-saving way to access additional funds without the burden of interest.