The Old Mutual Zero Interest Loan offers a unique opportunity for South Africans to access funds using their qualifying savings or insurance plan, at a true zero interest rate.

This product is designed for clients who wish to maintain their ongoing investment or premium schedule without incurring additional borrowing costs.

With no interest charged on the loan, clients benefit from greater financial flexibility and peace of mind when managing short-term needs.

How to Apply: Step-by-Step Guide

Applying for the Old Mutual Zero Interest Loan is straightforward and can be completed in a few key steps to ensure you meet all requirements.

First, check that your plan or savings benefit is eligible and not subject to any cessions, pledges, or bankruptcy restrictions.

Fill out the official loan declaration accurately, affirming your authority and the good standing of your policy or benefit.

Submit the application, confirming all notices and communication details match what’s on record with Old Mutual for your plan.

Await processing—Old Mutual may disburse funds in instalments, ensuring compliance with all regulatory and internal requirements.

Key Advantages of the Zero Interest Loan

The absence of interest makes this loan extremely attractive—borrowers only repay the principal amount, avoiding traditional financing costs.

Repayment terms are flexible: clients may pay back the loan in full or with instalments, whenever convenient, as long as they meet Old Mutual’s minimum requirements.

All repayments are made in rands, directly to Old Mutual, avoiding any currency conversion confusion.

The agreement is governed by local South African law, giving applicants additional regulatory confidence and legal protection.

Multiple borrowers can share responsibility, ensuring joint and several liability for smoother repayments among partners or co-owners.

Potential Drawbacks to Consider

Loan amounts are capped, based on strict long-term insurance regulations and internal limits from Old Mutual’s systems.

Clients may face fees, like a plan amendment or transaction admin charge, if the loan is granted or processed.

Principal becomes due immediately in several scenarios, such as the death, insolvency, or plan value dropping below designated thresholds.

Certain policies, such as second-hand types, may face capital gains tax if funds are disinvested, reducing the overall benefit.

During the first five years of your plan, only one loan and one disinvestment are permitted, controlling how often you can access cash.

Application Pros: Streamlined & Flexible

The process emphasises transparency and customer empowerment—applicants receive transaction records and can select how they receive Old Mutual’s communications.

Flexible repayment, no interest, and the ability to keep your regular premium or investment schedule add substantial value for policyholders seeking short-term relief.

Application Cons: Regulatory Complexity

Old Mutual must strictly comply with the Long-term Insurance Act, which limits the frequency and size of allowable loans, especially early in your plan’s life.

The existence of amendment and admin fees means the loan isn’t entirely free, so applicants should check their plan’s terms before applying.

Our Verdict

The Old Mutual Zero Interest Loan stands out for its zero interest feature, making it a practical choice for anyone wanting to unlock value from their savings or insurance plan temporarily.

While some restrictions and fees apply, the flexibility in repayment, robust regulatory backing, and straightforward application process make it well worth considering for South Africans needing short-term liquidity.