Standard Bank is one of South Africa’s biggest bank with an approximate asset value of USD 1.583 billion. It serves about 10 million clients in South Africa. The bank offers three types of loans to businesses:
- Term loans,
- Flexible loans, and
- Agricultural loans.
Term Loans
Term loans have fixed terms. If you take out this loan for your business, you will have to repay the loan in full before getting a new loan. There are two types of term loans offered by Standard Bank.
– Business Term Loan
The Business Term Loan package from Standard Bank has the following features:
- A term lasting anywhere from 24 to 60 months.
- A personalized interest rate that is linked to the prime interest rate. If benchmark rates from South Africa Reserve Bank (SARB) change, the interest rate on your business’s loan will also change.
- Variable monthly repayments. Changes in interest rates changes the number of monthly repayments.
- A R69 monthly service fee is charged for it.
- A once-off initiation fee that is 1.51% of the loan’s limit.
To qualify for the loan, your business must have a business account for the everyday business transactions. Once the loan is approved, it will be deposited to this account.
– Fixed Repayments Business Loan
The Fixed Repayments Business Loan package from Standard Bank has the following features:
- A term lasting anywhere from 36 to 120 months.
- A personalized interest rate that is linked to the prime interest rate.
- Fixed monthly repayments.
- A R69 monthly service fee is charged for it.
- A once-off initiation fee that is 1.51% of the loan’s limit.
To qualify for this loan, your business must also have a business current account for the everyday business transactions. Once the loan is approved, it will be deposited to this account.
Flexible Loans
As opposed to term loans, flexible loans let the debtor (your business) take out a new loan during their life cycle.
– Business Revolving Loan
The Fixed Repayments Business Loan package from Standard Bank has the following features:
- A term lasting 60 months at least.
- A personalized interest rate that is linked to the prime interest rate.
- Fixed monthly repayments.
- A R69 monthly service fee is charged for it.
- A once-off initiation fee that is 1.51% of the loan’s limit.
- Allowance to take an amount once you reach 15% of your limit in repayment. This will extend the previous loan’s term.
- A loan review fee which is 1.01% of the limit for the approved loan.
To qualify for this loan, your business must also have a business current account for the everyday business transactions. Once the loan is approved, it will be deposited to this account.
– Business Overdraft
The Business Overdraft Loan package from Standard Bank has the following features:
- A term lasting anywhere from 24 to 60 months.
- A personalized interest rate that is linked to the prime interest rate.
- A R69 monthly service fee is charged for it.
- A once-off initiation fee that is 1.51% of the loan’s limit.
To qualify for this loan, your business must have a business current account for the everyday business transactions. Additionally, a risk-profile assessment from Standard Bank will affect its approval for this loan. The risk profile is based on three dimensions: the business’s environment, it’s financial position, and its management. Once the loan is approved, it will be deposited to this account.
– BizFlex: Short-term Business Loan
The BizFlex Short-term Business Loan package from Standard Bank is specifically meant to be used as working capital or growth capital for your business. It has the following features:
- Repayments are done as soon as your business earns revenue.
- You choose the percentage of your business’s revenue that is deducted. However, a minimum amount can be placed if your preferred revenue deduction is low.
- It has a fixed interest rate. This does not change regardless of the time complete repayment of the loan takes.
- No monthly fees charged for it.
- All BizFlex loan processing from application to approval is done online.
To qualify for this loan, your business must also have a business current account for the everyday business transactions. Once the loan is approved, it will be deposited to this account.
Agricultural Loans
– Agricultural Production Loan
The Agricultural Production Loan package from Standard Bank has the following features:
- A term lasting anywhere from 4 to 18 months.
- A personalized interest rate.
- You have two repayment options for Agricultural Production Loan provided to you by Standard Bank. Using the first option, you can repay only the interest monthly, then there loan at the end of the term. The second option let’s you pay the full. amount at the end of the term
- Your approved limit will depend on your business’s cashflow requirements.
- A R69 monthly service fee is charged for it.
- A once-off initiation fee that is 1.26% of the loan’s limit.
To qualify for this loan, your business must also have a business current account for the everyday business transactions. Once the loan is approved, it will be deposited to this account.
How to Apply for Standard Bank Business Loans
To get business loans, you can use any of the following options:
- If you own a sole proprietorship, you can call the bank at the number – 0860 109 075 or email the bank at bizdirect@standardbank.co.za to apply online.
- Sole proprietorships can also apply at Standard Bank AutoPlus ATMs.
- Partnerships, private companies, and Close Corporations (CCs) must visit your nearest Standard Bank branch and fill in a suretyship form. This option is also available to sole proprietorships.
Requirements for Standard Bank Business Loans
The following information will be requested for processing of a Standard Bank business loan request:
- Your business plan
- Your business’s cashflow forecast.
- Sales records.
- Your business’s budget detailing purchases to be made.
- Your business’s financial statements.
- The business’s credit check from the credit bureau as well as credit checks for its owners or partners.
- Description about what the loan is meant for.
- Details about the collateral, if any.
- Copy of deed of sale and lease agreement for the business’s premises if the loan applied for is meant to buy a business.
Additionally, if you do not bank with Standard Bank, you will have to provide:
- Bank statements for the latest three months,
- Facilities letter from your bank, and
- Details of any collateral held by your bank.
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