Introducing the Old Mutual Zero Interest Loan

The Old Mutual Zero Interest Loan stands out by offering eligible South Africans the opportunity to borrow without accruing any interest. This unique feature distinguishes it from the bulk of local loan products.

Exclusively for certain Old Mutual policyholders, this loan allows you to continue paying your existing policy premium schedule, or make ad hoc investments. The loan amount may be restricted by both your policy terms and specific insurance regulations.

Repayments are flexible, and can be made in full or through instalments, as long as Old Mutual’s minimum repayment requirements are met. Notably, the loan is repayable in South African currency at their principal place of business.

Borrowers must ensure that their estate has not been sequestrated or liquidated, and that the plan has not been ceded or pledged. These conditions help keep the offering secure and straightforward for policyholders.

The loan is governed entirely by South African law, and notifications regarding it will be provided by post, email, or fax according to your preferences. Transparency remains at the core of Old Mutual’s approach.

Step-by-Step to Apply

1. Confirm eligibility as an Old Mutual policyholder, ensuring your plan is active and not pledged or ceded.

2. Request a loan application from your nearest Old Mutual branch or financial adviser.

3. Fill in the loan application form accurately, declaring any required information about your estate and plan.

4. Submit completed forms and supporting documents for review. Old Mutual will determine the maximum allowable amount based on regulations.

5. Receive a decision and, if approved, payment can be made in instalments depending on clearance procedures. Repay according to agreed terms, in rands.

Pros of the Old Mutual Zero Interest Loan

The main advantage is the absence of interest, keeping your repayments and overall cost notably lower than most alternatives.

Flexible repayment options mean you can repay the loan in full or in agreed instalments, giving added peace of mind for borrowers with varying cash flows.

Cons of the Old Mutual Zero Interest Loan

The loan is only accessible to existing Old Mutual policyholders, limiting the scope for new entrants or the broader public.

Loan amounts may be restricted by your policy value and specific South African long-term insurance regulations, potentially reducing how much you can borrow.

Our Verdict

This loan is a solid, no-frills choice for existing Old Mutual policyholders seeking interest-free finance against their savings benefit. While it isn’t open to everyone, its transparent structure and flexibility make it an attractive option for eligible individuals.