Old Mutual’s Zero Interest Loan for South Africans stands out with a truly 0% interest rate, making it a unique product in the local market. There are no hidden charges or accrued interest, and repayments are flexible, which benefits clients who wish to manage their financial obligations efficiently. This loan is available only if you have a qualifying Old Mutual plan, aligning your loan with your investment or insurance portfolio.

The terms and conditions set clear limits on loan amounts. The approved loan cannot exceed the lower of the sum you apply for and the maximum allowed by the relevant regulations. Old Mutual also requires that your policy or savings benefit has not been pledged or ceded elsewhere. Plus, your estate must not be under sequestration or liquidation, maintaining compliance throughout.

If approved, the loan may be paid in instalments, depending on the clearance of any debit or stop orders. Repayment is straightforward: you can pay at any time, whether partially or in full. There are no penalties for prepayment. If there are multiple borrowers, all are jointly responsible for repayment. Repayment must be done in South African currency at Old Mutual’s main business location.

How to Apply: Step-by-Step Process

1. Ensure you hold an eligible Old Mutual plan or Savings Benefit in good standing.
2. Read the Zero Interest Loan Declaration and confirm your estate is not under sequestration or liquidation.
3. Provide proof that your plan is not pledged as security elsewhere.
4. Submit your application form, confirming your physical and contact details.
5. Wait for Old Mutual’s approval and payment, which may occur in instalments.

Pros of the Old Mutual Zero Interest Loan

Zero percent interest makes this product incredibly cost-effective versus conventional loans, and there are no hidden interest or extra monthly charges.

Repayment options are flexible. You can settle the loan at any time, in part or in full, which helps if your financial situation changes.

Potential Downsides

The main limitation is eligibility: only Old Mutual plan holders can access this loan, so it may not suit newcomers without qualifying insurance or investment products.

The loan amount is limited by regulations and your plan’s value, which can be restrictive for those needing larger sums.

Our Verdict

The Old Mutual Zero Interest Loan is an attractive option for existing policyholders needing short-term liquidity. The absence of interest charges offers genuine savings, while flexible repayment ensures convenience. The only real drawback is the product’s exclusivity to Old Mutual clients and regulatory caps on loans. If you qualify, this is a compelling low-cost way to access funds.