Sanlam does not publish a separate consolidation loan product. If you want a Sanlam consolidation loan, you apply for the Sanlam Personal Loan and use the money to settle your other debts, so the requirements are those of the personal loan. A consolidation loan replaces several debts with one agreement and one instalment.
Sanlam says that in a consolidation all your outstanding debt from various providers is added up and paid off at once, and that you can still qualify if you have other debt, provided your credit score is good and you can service the additional credit. Details are on the Sanlam Personal Loans page.
Eligibility Requirements at a Glance
Sanlam lists these requirements for its personal loan, which is the loan used for consolidation:
- Be 18 years or older
- Be a South African citizen with a valid ID
- Have a mobile number and email address
- Submit 3 months’ bank statements showing 3 salary deposits
The loan is unsecured, so you do not put up collateral. If you are married in community of property, or under customary or foreign law, Sanlam says you need your spouse’s consent to enter into a credit agreement. Meeting these requirements does not guarantee approval; Sanlam decides each application on your finances.
Income and Affordability Requirements
Sanlam says it considers your finances and will not lend you more than you can afford. The National Credit Act also requires a credit provider to check that you can afford the credit before granting it, and a loan granted without a proper assessment can be reckless.
Sanlam personal loans range from R4,000 to R350,000 in increments of R1,000. Sanlam’s page describes repayment terms of up to 84 months (3 months to 7 years). Sanlam does not publish a minimum income, so you will only know whether the amount you need to settle your debts is affordable once you apply.
Credit and Financial Requirements
Sanlam says your interest rate depends on your credit score, and that rates and fees are set per applicant. Its worked example on the personal loan page is R50,000 at 24.5% a year over seven years, with an initiation fee of R1,207.50 and a monthly admin fee of R69, totalling R102,085.93. The maximum annual percentage rate is stated as 27.29%. Treat these as an illustration only; the figures can change, so check the current page and your own quote.
Sanlam is a registered credit provider (NCRCP272) and its loans are subject to the National Credit Act 34 of 2005. Sanlam does not publish a minimum credit score.
Before you consolidate, list every debt with its balance, rate and remaining term. Sanlam’s own advice is to pay off high-interest debt first and then close those accounts, and it notes that the downside can be a longer repayment period, which can mean paying more in total. Settling a low-rate agreement with a higher-rate unsecured loan can cost you money.
Documents and Verification Required
Sanlam asks for bank statements for the last 3 months showing 3 salary deposits. You can upload them during the application or email them to [email protected]. Have your South African ID, mobile number and email address ready.
For a consolidation, also get a written settlement balance from each creditor you want to pay off, plus account numbers, so you can tell Sanlam exactly what must be settled. Sanlam may ask for further documents depending on your application, so confirm with them.
How to Apply and Improve Approval Readiness
Apply online through the Sanlam Personal Loans page, or speak to a Sanlam expert on 0860 00 72 27 for new applications (Monday to Friday 08:00 to 20:00, Saturday 08:00 to 20:00, Sunday 08:00 to 14:00). Sanlam says an approved loan could be paid within 24 hours, depending on how quickly you submit your documents.
- Compare the total repayable on the new loan with what you owe across your current debts, not just the monthly instalment
- Get settlement figures from every creditor before you apply
- Close the accounts you settle so you do not run up new balances; Sanlam advises against taking on new credit while repaying a consolidation loan
- Check your credit report and correct errors before applying
- Ask for the interest rate, initiation fee, monthly fee and total repayable in writing before you sign
- If your instalments are already unaffordable, speak to a debt counsellor registered with the NCR instead of borrowing more
Frequently Asked Questions
Does Sanlam offer a consolidation loan?
Not as a separate product on its website. Sanlam describes using its unsecured Personal Loan to consolidate debt, subject to a good credit score and affordability.
What are the Sanlam consolidation of debt loan requirements?
They are the Sanlam Personal Loan requirements: 18 or older, a South African citizen with a valid ID, a mobile number and email address, and 3 months’ bank statements showing 3 salary deposits.
Will consolidation hurt my credit record?
Applying for a large new loan is a new credit agreement, and what matters over time is keeping it up to date. Sanlam advises that your credit score should be good to qualify and that you avoid new credit while repaying.
Can I consolidate while under debt review?
Be careful here. The National Credit Regulator says a consumer under debt counselling cannot obtain more credit, while an older NCR consumer guide says a consolidation loan is the only credit a consumer under debt review can apply for. Because the sources differ, confirm with your debt counsellor or the NCR before applying.
Is consolidation cheaper?
Only if the rate and term make it so. One instalment is easier to manage, but a longer term can mean more interest overall, as Sanlam itself notes. Compare total cost, not the monthly figure.
What is the difference between consolidation and debt review?
Consolidation is a single new loan that pays off your other debts. Debt counselling is a separate process run by a debt counsellor registered with the NCR. They are not the same, and you can confirm a counsellor’s registration at ncr.org.za.
Confirm current criteria, rates and fees with Sanlam before you apply. See loan requirements and browse all finance and funding requirements.