With the tax rebates promised for those who buy solar power,
ThuthukaSA is concerned that some are going to use personal loans to get solar. Load shedding is going to see many of us rushing to buy solar power & taking very expensive loans on offer all over the show. The number of highly indebted people who cannot afford to repay the loans is going to increase even further.
The most affordable way to get solar is:
1) A re-advance loan or
2) A further bond or
3) Refinance loan
A reminder of what could happen if you take that personal loan to buy solar – this is based on a real life story that we published a few weeks ago.
Date Loan was opened =October 2022
Opening balance = R351 207
Current balance = R585 399, February 2023
Settlement amount is R349 000 as of February 2023
Monthly installment = R9 269
On 27 January 2023, the monetary policy committee of the Reserve Bank increased the Repo rate by 25 basis points. The prime rate of interest is now 10,75%. The Repo rate is 7,25%. There is a huge possibility that these rates are going to go up again on the 28th of March 2023.
If you use a personal loan or some other unsecured short-term loan, you could end up paying as high as 28,25% interest plus an equally high credit life / credit assurance. On the other hand, if you use one of the more affordable loans mentioned above, you would pay interest rate in the region of 10 -12%.
Contact ThuthukaSA if you want to apply for a loan for your solar. Please have the following info / documents ready
- Area where your home is based
- Do you have a title deed for your home? Is this in your name
- What is the value of your home?
- Are you still paying towards the home loan? If so,
- Which bank financed the home loan
- When did you buy the home?
- What was the original loan amount?
- What is the outstanding balance?
- What is your credit score? Do you have any judgments or adverse info on your credit report