About the Old Mutual Zero Interest Loan

Old Mutual offers a zero interest loan, allowing qualifying customers to access extra funds with absolutely no interest charged. This can be especially appealing compared to traditional loans and their ongoing interest costs.

The loan amount you can qualify for is subject to regulatory limits as well as the value of your plan or savings benefit. Your savings history and plan conditions impact the accessible amount.

Old Mutual may pay out your approved loan in one or more instalments, depending on your plan’s debit order or stop order clearance. Repayments can be made at any time in full or in parts, giving ultimate flexibility.

Repayments are expected in South African Rand, payable at Old Mutual’s main office. The principal will become due on certain triggers: withdrawal of benefits, insolvency, or if your fund value drops below Old Mutual’s set limits.

There are possible administrative fees related to the transaction, but no ongoing interest, which can be a major saving over regular loans.

How to Apply: Step-by-Step Summary

• Confirm eligibility by ensuring your plan is active and not pledged/ceded elsewhere.
• Complete the loan declaration form thoroughly and accurately.
• Submit the form to Old Mutual with required supporting documents.
• Wait for approval and loan amount calculation (subject to regulatory and plan limits).
• Receive funds into your chosen account in instalments or full amount.

Key Pros of the Zero Interest Loan

A major advantage is that there are no interest payments on the loan. You simply pay back what you borrow, giving you better financial control and peace of mind.

This offering also boasts flexible repayment options. You can repay in lump sums or manageable instalments, with no penalty for early repayment—all at your convenience.

Possible Cons to Consider

The amount you can borrow is limited by regulations and the value of your plan, which might be restrictive if you need a larger sum quickly.

There may be administrative fees or charges and possible restrictions on loan activity within the first five years of your plan, minimising flexibility for new customers.

Our Final Verdict

If you want a fair, transparent loan with no interest and flexible repayments, Old Mutual’s Zero Interest Loan is an excellent solution for those who qualify.

It’s particularly attractive for existing customers who need a temporary cash flow boost and wish to avoid the escalating costs of conventional credit.