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Monday Feb 22, 2021

Anuva Investments launches new loan product

Anuva Investments, a registered 12J Venture Capital Company, has announced the launch of a new loan product, the ‘Convertible Investment Loan’, provided by Flyt Property Investment. The product enables qualified investors to secure a 100% loan to invest into Anuva’s Section 12J Equity, Property or Fixed Income funds which allow South African taxpayers to claim tax relief of up to 45% on the investment amount.

Andrew Friedmann, Head of Sales at Anuva Investments, explains, “To get your tax into a Section 12J investment, you need the money to invest. This loan product offered by Flyt solves this by providing investors 100% finance. Investors can then use their tax refund to partially repay the loan, and pay off the balance via a monthly debit order.

How it works:

You decide which of Anuva’s three investment funds (or a blend of all three) you’d like to invest in. Anuva’s tax consultants calculate your tax liability for the Feb 2021 tax year while Anuva’s approved loan partner, Flyt Property Investment, evaluate your application for finance.

To calculate your qualifying loan value three factors are considered, namely how much your tax refund will be, your affordability for monthly loan repayments, and which of the three funds you have chosen to invest in.

Once the loan has been approved, Flyt will disburse the loan directly to Anuva on your behalf. This will be used to purchase your Section 12J shares in an income fund which pays a fixed dividend of Prime less 2.5%. As you repay your loan to Flyt via monthly instalments over a 60-month term, your shares will automatically be converted into the investment fund(s) of your choice. When tax season opens and you receive your tax refund from SARS, you pay this back to Flyt further settling your loan and increasing your investment shares in Anuva.

An added benefit is that your loan is repaid quicker than just your monthly repayments as the dividends you get from converted Anuva Investment shares are automatically paid into your loan which reduce your required monthly repayments. You can also add lump sums to repay your loan faster and enjoy higher returns, plus a balloon payment is also allowed at the end of the five year loan period, further reducing your monthly re-payments.

After five years, you have a fully paid-off investment, comprising your tax refund, investment earnings, and your loan repaid. “It’s like a forced savings, but on steroids,” exclaims Friedmann.


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