Here are the facts about SASSA loans:

  • Section 20(0) of the Social Assistance Act, 2004 (Act 13 of 2004) states that it is unlawful to transfer/cede or pledge your social grant, meaning that it is illegal to put your SASSA card down as collateral for a loan
  • Money lenders can be arrested if they are caught in possession of payment cards used for surety for loans
  • Money lenders are not allowed, by any means, to have pensioners documents in their possession
  • A grant can be withheld, suspended or stopped if a beneficiary attempts to transfer/cede or pledge their grant
  • A declaration of intent is being rolled out to be signed by new applicants. This is to declare the safekeeping of their AllPay cards (the cards on which SASSA transfers grant funds), ensuring that it is not made available to money lenders

When applying for a loan remember:

  • It is required, by law, for any and all money lending firms to display their NCR certificate. If you don’t see one, or if you request to see one and it is not made available to you, this should be a waving red flag
  • Credit providers should also display their NCR sticker on their premises
  • Money lenders often ask recipients to move over from their AllPay cards to the EasyPay Everywhere cards. SASSA has made it clear that if recipients choose to do so they will “not be under the regulatory protection” of the state

Loans in South Africa

Secured Loan is a long-term loan, which has a guarantee attached to it. It’s the best way to obtain large amounts of money and purchase property. Assets are used as security in case of a default. Large amounts of money will not be borrowed to you without assurance, which is why you place your home or assets as leverage to guarantee that you will repay your loan on time. Secured loans consist of low interest rates and longer repayment options.

How to apply for a loan?

What will you need to apply for a loan?

  • A good credit record
  • A regular monthly income of at least R5 000
  • The details of your bank account into which your salary is paid


Banks provide various types of loans to ensure that they meet all your needs.

  • Home Loan – The bank borrows you money, and the house remains the property of the bank until the final instalment is made. Consumers are required to pay back the loan on a monthly basis, at the given interest rate and over a stipulated period, normally 20yrs.
  • Car Loan – Most banks provide car loans for both used and new cars. Consumers pay back the instalments on a monthly basis, and the vehicle belongs to the bank until the final payment is made.
  • Personal Loan – Banks provide different options when it comes to a personal loan. This is a financial solution ideal to suit all your needs. The amount of money that you can borrow depends on the chosen bank, your financial eligibility and affordability to repay the loan.
  • Business Loan – A business loan provides you with the capital to start your business venture. The bank provides you with the money and you are required to make the repayments after an agreed period of time. The requirements vary according to each bank and whether you are a new business or have been in operation plays a major part in your loan application.