- FNB has opened up loans for solar power systems and installation to individual clients.
- The bank is offering loans at an attractive Prime +1% interest rate.
- Customers can lend up to R300 000 so long as the fee is being used purely for solar power systems.
Reducing the reliance your household has on Eskom is on the minds of every South African as we approach the end of the year. For many, a year of loadshedding (minus nine days) has been enough for them to reach boiling point and consider alternative energy sources.
Thankfully there is no shortage of solutions be that backup power stations, fuel generators and solar, to bolster your personal power needs. When it comes to solar, South Africans can take advantage of a tax rebate that makes installing a solar power solution more accessible for more individuals.
Unfortunately, many South Africans simply can’t afford the cost of solar power and to that end, financial institutions have taken to offering loans that customers can pay back over time while enjoying the benefits of the system today.
This week FNB announced that its customers can apply for a Personal Solar loan at an interest rate of Prime + 1%.
“Without a doubt energy security continues to be one of the main challenges for individual customers, families and businesses. As an integrated financial services provider, we want to help our customers meet their day-to-day needs to enable them to thrive. While we have been supporting our individual customers with a range of solutions to build resilience against energy challenges, we believe that the Personal Solar Loan Benefit adds significant value as it allows us to extend more help to customers,” says MJ Davis, chief executive officer of FNB Loans.
The requirements for qualifying for the Personal Solar Loan are outlined below:
- The loan amount you take out on your FNB Personal Loan cannot exceed R300 000.
- At least 90 percent of the funds from your Personal Loan must be used for solar generation and related costs.
- The funds must be used for solar panels and other solar-related expenses. Solar-related expenses can include batteries, inverters, and installation costs.
- Benefit must be activated within 2 months (60 calendar days) after payout on the FNB Personal Loan.
- As per National Treasury, only one credit product per customer will be allowed to benefit from this scheme. This means if you’ve already taken up a solar benefit credit product with FNB or with another bank you will not qualify for this benefit.
In order to access the incredibly attractive Prime + 1% interest rate you will need to comply with certain provisions as Davis outlines below.
“In order to access the benefit, you will need to obtain a quote from a reputable supplier. You will need to apply for an FNB Personal Loan, it is important that you ensure your loan amount does not exceed R300 000 and the loan amount is within 90% of the invoice received. You will be quoted on your personalised interest rate,” he said.
“After your personal loan has paid out, you will need to pay a deposit to your supplier. Once deposit has been paid, you will need to log onto the FNB App to activate the benefit. The interest rate will only be lowered on your FNB Personal Loan once the benefit has been activated and all supporting documentation is received and verified, activation may take up to 10 business days. The rate will also be effective from date of activation and not backdated.”
Given that we are approaching the end of the calendar year and how quickly companies shut down in December, we recommend FNB customers looking to take advantage of this offer jump on it as soon as possible to avoid a dark festive season.