The personal loan customer protection plan is very vital especially when you are taking any form of credit whether it is an overdraft, revolving credit loan, student loan or personal loan, according to the nichemarket.co.za website there are about 6 million South Africans who are currently blacklisted, so the customer protection plan protects you from getting blacklisted in the event that you can not repay your credit, this may be due to a number of reasons such as being retrenched from work or temporarily disabled.
Life is not predictable and anything can happen such as losing your job and other factors that could make you be unable to repay your credit or loan, so it is advisable to ask your service loan or credit provider if they do offer their customers a credit customer protection plan, if they don’t you might be tempted to take the loan or credit provided, but it is wise to think about the future and protect your self, rather take credit to a provider that offers the protection plan.
Who provides a customer protection plan?
Most of the credit providers are underwritten by the actual insurance providers, for example, Capitec Bank is underwritten by Guardrisk. Just to name a few companies that do provide the customer protection plan:
- Capitec Bank: credit insurance
- FNB: Debt protection plans
- Sanlam: Credit Life Cover
- Old Mutual Finance: Credit Life Insurance
- Nedbank: Personal loan insurance
- Standard Bank: Loan Protection Plan
- DirectAxis: Personal Protection Plan
- RCS: Customer Protection Insurance
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