Old Mutual Finance offers unsecured personal loans to South African consumers, alongside the group’s insurance, investment and retirement products. The loan itself is assessed the way any unsecured lending is: on income, affordability and credit record.
Being an existing Old Mutual policyholder does not by itself qualify you for a loan, and a policy is not usually the security. That distinction matters, because it is a common misunderstanding.
Eligibility Requirements at a Glance
The entry criteria are standard for regulated unsecured lending.
- Be 18 years or older
- Hold a valid South African ID document or smart card
- Have a regular, verifiable income paid into a bank account in your own name
- Be permanently employed, or have verifiable self-employed income
- Not be under debt review, sequestration or administration
- Have a working cellphone number and a verifiable residential address
Income and Affordability Requirements
Affordability determines the amount and the term far more than the advertised maximum does.
The Act requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses prescribed in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
Where income includes commission or variable allowances, the assessment normally works from an average across several months rather than the strongest one.
A longer term lowers the instalment but raises the total interest paid. Ask for the total repayable figure at two or three different terms before choosing — the comparison is more informative than the monthly number on its own.
Credit and Financial Requirements
Your credit bureau record sets both the approval decision and the personalised interest rate.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). Verify registration free of charge at ncr.org.za before you sign.
Borrowing against retirement or policy value is a different thing entirely. Some long-term products allow a loan against surrender value, and pension-backed lending exists in specific circumstances. These are governed by the product rules and by pension and long-term insurance legislation rather than by ordinary personal lending rules, and the consequences for your eventual retirement benefit can be significant. Ask the product provider for the specific terms in writing, and take advice before reducing retirement provision.
Credit life insurance is standard on unsecured lending and settles the outstanding balance on death, permanent disability or retrenchment. You may substitute your own policy of equivalent cover; ask for the premium separately so you can compare.
Documents and Verification Required
Prepare the standard pack before applying.
- South African ID document or smart card
- Latest payslip, or the latest three where income varies
- Latest three months’ bank statements showing income deposits
- Proof of residence not older than three months
- Banking details for payout and the debit order mandate
- For self-employed applicants: six months’ statements and financial statements
How to Apply and Improve Approval Readiness
Apply through Old Mutual’s own channels, by phone, or through a financial adviser. If you hold policies with the group, ask specifically what is being offered — an ordinary personal loan and a facility against a policy are different products with different consequences.
- Draw your free annual credit report from each bureau and dispute errors first
- Close revolving accounts you no longer use
- Ask for the total repayable amount at more than one term
- Do not reduce retirement provision to fund short-term spending without advice
- Avoid several credit applications in a short window
- Verify the provider’s NCR registration at ncr.org.za
Frequently Asked Questions
Does having an Old Mutual policy help my application?
Not automatically. A personal loan is assessed on income, affordability and credit record. Holding a policy is a separate relationship.
Can I borrow against my policy or retirement savings?
Some products allow it, subject to product rules and the relevant legislation. The effect on your eventual benefit can be substantial, so get the terms in writing and take advice first.
Can I settle the loan early?
Yes. Request a settlement quotation. Early settlement reduces the interest and fees payable over the remaining term.
Is credit life insurance compulsory?
It is standard on unsecured lending. You may substitute your own policy of equivalent cover — ask for the premium quoted separately so you can compare.
Lending criteria, rates and product terms are set by the provider and change. Confirm current requirements directly, and take financial advice before borrowing against long-term savings.