Standard Bank Debt Consolidation
Combine your debts into one manageable payment
Struggling with multiple debt payments? Standard Bank's debt consolidation loan lets you combine credit cards, store accounts, and other loans into one lower monthly payment.
With competitive rates from 12.25% and loan amounts up to R300,000, you can simplify your finances and potentially save money on interest.
Quick Facts
Loan Amount
Up to R300k
Based on affordability
Repayment Term
Up to 72 Months
6 years to repay
Interest Rate
From 12.25%
Variable rate
What is Debt Consolidation?
Debt consolidation combines multiple debts into a single loan. Instead of paying several creditors each month, you make one payment to Standard Bank.
Before Consolidation
- • Credit card: R800/month @ 21%
- • Store card: R500/month @ 24%
- • Personal loan: R1,200/month @ 18%
- Total: R2,500/month
After Consolidation
- • Single loan @ 15%
- • One payment date
- • Fixed end date
- Total: ~R2,100/month
Key Features
One Monthly Payment
Combine credit cards, store accounts, and other loans into a single, predictable payment.
No Early Settlement Fee
Pay off your loan early without penalty - you'll only pay interest for the time you had the loan.
Direct Payment to Creditors
Standard Bank can pay your creditors directly, ensuring debts are properly settled.
Fixed Repayment Schedule
Know exactly when you'll be debt-free with a clear end date.
Interest Rates & Fees
| Fee Type | Amount |
|---|---|
| Interest Rate | From 12.25% - 27.75% p.a. |
| Initiation Fee | Up to R1,207.50 (once-off) |
| Monthly Service Fee | R69 per month |
| Credit Life Insurance | Included |
| Early Settlement Fee | None |
Example: Consolidating R80,000 of Debt
Here's how consolidating R80,000 over 60 months at 15% could look:
Consolidation Details
Requirements to Qualify
Basic Requirements
- South African citizen or permanent resident
- 18 years or older
- Permanently employed
- Minimum income of R5,000 per month
- Not under debt review
Documents Needed
- Valid SA ID document
- Latest payslip
- 3 months bank statements
- Proof of residence
- Settlement quotes from creditors
How to Apply
Gather Your Debt Information
List all your debts with current balances and monthly payments. Request settlement quotes.
Apply Online or In-Branch
Use the Standard Bank app, website, or visit a branch. Existing customers may have pre-approved offers.
Get Your Quote
Receive a personalized quote showing your new monthly payment and total savings.
Creditors Paid Off
Standard Bank pays your creditors directly. You start making one monthly payment.
Pros and Cons
Pros
- One simple monthly payment
- No early settlement fee
- Potentially lower interest rate
- Fixed end date for debt freedom
- Direct payment to creditors
- UCount Rewards on your loan
Cons
- Longer term = more total interest
- Requires good credit for best rates
- Monthly service fee of R69
- Doesn't address spending habits
- Not suitable if under debt review
Before You Consolidate
- • Stop using credit cards - Consolidation only works if you don't build up new debt.
- • Check your total cost - A lower monthly payment over longer term may cost more overall.
- • Consider debt counselling - If you're really struggling, formal debt review might be better.
- • Close consolidated accounts - Avoid temptation by closing paid-off credit accounts.
Frequently Asked Questions
Will consolidation affect my credit score?
Initially, it may dip slightly due to the credit enquiry. However, consistent payments on your consolidation loan can improve your score over time.
Can I consolidate if I'm blacklisted?
Standard Bank requires a reasonable credit profile. If you're severely blacklisted, consider debt counselling first or alternative lenders like African Bank.
How long does approval take?
Existing customers may get pre-approved instantly. New applications typically take 24-48 hours. Paying creditors may take an additional few days.
What debts can I consolidate?
Credit cards, store accounts, personal loans, overdrafts, and some hire purchase agreements. You generally cannot consolidate a home loan or vehicle finance.