The Old Mutual Zero Interest Loan is designed for South Africans seeking financial flexibility without the burden of interest charges. As an unbiased reviewer, it’s noteworthy that Old Mutual offers a truly zero interest option, meaning you repay only the amount borrowed.

Applicants must maintain their existing premium schedule or continue ad hoc investments into their Old Mutual plan. Loan amounts are subject to regulatory limits under the Long-term Insurance Act and are restricted to the lesser of the amount applied for or the legal maximum.

How to Apply: Step-by-step

1. Ensure your estate is not under sequestration/liquidation and your policy is not ceded or pledged.
2. Complete the loan declaration and confirm your ongoing premiums or investments.
3. Submit your application with accurate personal and policy information.
4. Wait for Old Mutual to assess your application and notify you of approval.
5. Once approved, receive your loan in South African currency at Old Mutual’s principal place of business.

The Main Advantages

The headline benefit of the Old Mutual Zero Interest Loan is clear: you pay no interest. This can yield significant savings compared to conventional loans.

Repayment terms offer flexibility; you may repay in part or in full at any time, without penalty. There is also no need for advance notice to settle your loan.

Potential Drawbacks

The loan amount is capped by both your policy limits and the Long-term Insurance Act. This can restrict how much you may borrow, particularly in the first five years.

Applicants are restricted from pledging their plan as security or ceding benefits until the loan is fully repaid. Additional charges may apply if the plan is amended or reduced.

Final Verdict

The Old Mutual Zero Interest Loan stands out for those who want to borrow against investments without incurring extra costs. If you need a straightforward, affordable loan and are eligible under your Savings Benefit, it’s a compelling choice.