Old Mutual offers a unique zero interest loan exclusively to its plan and savings benefit clients. This interest-free loan allows customers to borrow against their existing savings plan under clearly defined terms.

The main highlight of this offer is that you pay zero interest on the loan, maximising your ability to leverage your own savings without incurring extra costs. Repayments can be made flexibly according to your financial capacity.

Loan amounts will depend on the value within your policy, and are capped by Old Mutual’s rules and regulations under the Long-term Insurance Act. This means the maximum loan is either the amount you request or the limit enforced by regulation—whichever is lower. Furthermore, your plan must not be pledged or ceded, and your estate must be clear of sequestration.

How to Apply: Step-by-step Guide

• Check eligibility: Ensure your Old Mutual plan qualifies and is not ceded or pledged.
• Request a loan application form from Old Mutual.
• Complete the form with all necessary information, verifying accuracy.
• Submit the form and supporting documents to Old Mutual.
• Wait for evaluation and respond promptly to any Old Mutual queries.

Key Pros of the Old Mutual Zero Interest Loan

The greatest advantage is the absence of interest. You can make use of available funds at zero borrowing cost, giving you a flexible access point to cash.

Repayments can be made at any time, in full or installments, allowing you to manage payments in line with your financial situation. Early repayment does not involve penalties.

Potential Cons to Consider

Loan amounts are strictly limited by both the policy value and regulations. This could be restrictive if a larger sum is needed quickly.

There are possible administrative charges and plan amendment fees, which can affect the total cost if not clearly understood in advance.

Our Verdict

For Old Mutual policyholders, this zero interest loan provides exceptional short-term liquidity with minimal financial downside. However, approval is conditional and comes with several eligibility checks.

If you are managing cash flow and require a temporary boost without incurring interest, this offer is a practical and low-risk option worth considering.