How To Borrow Money From SASSA? – A Step-by-Step Guide In 2024

Borrow Money From SASSA

Have you ever thought about whether SASSA offers loans? Actually, the South African Social Security Agency (SASSA) does not give loans. Instead, SASSA is responsible for managing all social grant applications in South Africa. Their main job is to give social security through grants to those people who qualify.

SASSA loans offer quick financial help to South Africans who need it. These are small loans designed to reduce poverty. These loans allow you to borrow money based on your social grants. 

This means you get an advance on the money you usually receive from social grants. If you’re interested in applying for a SASSA loan, you can do so through several channels. These include banks or specific stores that are authorized to handle these loans.

How To Borrow Money From SASSA?

The SASSA doesn’t give out loans itself. However, some banks offer loans to people who get SASSA grants. These loans are not given by SASSA, but they are designed for people who rely on social grants. Before you can apply for a loan as a SASSA grant recipient, there are basic criteria you need to meet.

sassa money loans

South African Citizenship

You must be a citizen of South Africa. Your citizenship is typically verified through ID documents.

Age Requirement

You need to be at least 18 years old. This age limit makes sure that you are legally able to get a loan agreement.

Income or Grant

Having a consistent income or being an active recipient of a SASSA grant is necessary. This shows that you have a regular source of money to repay the loan.

Credit Check Process

When you apply for a loan, the lender will perform a credit check. Following is the way how they assess your financial condition and ability to repay the loan.

  • Credit History Evaluation: A credit check helps lenders to understand your financial condition. They check the history by looking at your past borrowing and repayment history.
  • Impact on Loan Approval: Having a good credit score is really important when you want to borrow money. It also decides the terms on which the loan is given.  If your score is high, you’ll probably get a loan with good conditions. But if your score is low, you might end up paying more in interest or not getting approved for the loan at all.

Required Documents To Borrow Money

  • ID Document: You need to have a valid ID to show you’re a citizen of South Africa and old enough to apply for the loan.
  • Personal Info: Make sure you have your contact details. These details are your phone number and address. You might also need to show proof of how much money you make or if you get a grant.
  • Credit Check Docs: Some lenders might want to check your credit history, so be ready with any documents they need for that.
  • Different Requirements: Every Lender is Different. Remember, each lender might ask for extra documents based on their requirements. Always double-check what documents they need before you apply.

Methods To Apply For SASSA Loans

You can apply for a loan via cell phone or by visiting SASSA office in person;

Apply for a Loan via Your Mobile Phone

    Applying for a loan through your mobile phone is a quick and easy process. Below are the steps to follow.

    Apply for a Loan via Your Mobile Phone
    • Dial the USSD Code

    On your mobile phone, dial 13037371.

    • Enter Your ID Number

    When asked, enter your South African ID number and press the call button.

    • Follow the Prompts

    You have to continue to follow the prompts that show on your phone’s screen. You will need to answer questions and provide the necessary information as asked by them.

    • Security PIN

    For security purposes, you will be asked to enter a PIN that you received at an ATM.

    • Monthly Expenses

    Enter the total amount of your monthly expenses when the pop up will show.

    • Choose Your Loan or Grant

    Select the specific grant or loan option you are applying from the choices given.

    • Receive Feedback

    After completing these steps, you will receive instant feedback on your mobile phone. They will inform you about whether your loan application is approved or rejected.

    How to Apply for a SASSA Loan at a SASSA Office?

    The procedure for applying in person is given below.

    How to Apply for a SASSA Loan at a SASSA Office?

    Visit Your Nearest SASSA Office

    Go to the nearest SASSA office to apply for a loan. Look for a SASSA officer to help you with the application.

    Fill Out the Application Form

    With the help of a SASSA officer, fill out the loan application form. Make sure all your details are correct and complete.

    No Fees Required

    Applying for a SASSA loan is free of charge. You don’t need to pay any money to apply.

    Keep Your Receipt Safe

    After submitting your application, you’ll receive a receipt. This receipt is important. Keep it safe.

    Wait for a Response

    If your application is approved, you’ll be notified. If it’s rejected, you’ll receive a written notice explaining the reason for rejection.

    Appeal if Needed

    If your application is rejected, you can appeal within 90 days. Send the letter to the Minister of Social Development.

    SASSA Loans through Banks

    Although SASSA itself does not issue loans directly, it gives access to loans provided by certain financial institutions. Here are some options if you’re thinking of getting a SASSA loan.

    SASSA Loans through Banks

    Shoprite Loans

    What They Offer: Shoprite gives affordable, secured loans with lower interest rates.

    How to Apply: To apply, you can visit a Shoprite store or start the process by messaging them at +27600123456. They will ask you a few questions to proceed with your application.

    Documents Needed

    • Three months’ bank statements.
    • Valid Identity Document such as ID card.
    • Proof of residence like a utility bill.
    • Pay slip (salary or wage).

    Finbond Loans

    What They Offer: Finbond Mutual Bank offers unsecured SASSA loans, both short-term and long-term. The amount of loans is ranging from R500 to R20,000 with fixed interest rates.

    How to Apply: You need to be over 21 years old and a South African citizen with a personal bank account. You can apply online through their website by filling out an application form.

    Documents Needed

    • Valid Identity Document.
    • Pay slips for the last three months.
    • Bank statements for the last three months.
    • Valid proof of your address.
    • Contact details (cell phone number and email address).
    • Documentation of monthly expenses.

    Capitec Loans

    What They Offer: Capitec provides loans with low interest rates and monthly installments. They allow loans up to R250,000. Credit insurance is also available if you will take out a loan.

    How to Apply: Use the Capitec app or visit their official website. Choose online under ways to apply and fill out the application form.

    Documents Needed

    • Bank statement showing your latest salary deposit.
    • Personal information (ID documents, name, surname, marriage certificate if married, divorce order if applicable).
    • Latest pay slip or proof of salary.

    FREQUENTLY ASKED QUESTIONS

    The amount of money you can borrow with SASSA loans can be different. This depends on from where you are getting the loan. Some banks may let you borrow up to R8,000, while others might only offer between R250 and R1,000. The exact amount you can borrow often depends on your own situation and the bank that gives you the loan.

    SASSA loans have different repayment periods depending on how much you borrow and the agreement you make with the lender. If you take out a smaller amount, you might have to pay it back within one to six months. But if you borrow a larger amount,, you could have up to two years to repay it. It’s necessary to carefully read and understand the terms and conditions. These terms are provided by the lender before taking out a SASSA loan. This way, you’ll know exactly how long you have to repay the loan and can plan your finances accordingly.

    The interest rate for SASSA loans can change, but here are some things to know:

    • Capitec SASSA loans: You can pay back the money over 6 months.
    • Finbond SASSA loans: They have lower interest rates than others.

    For example, if you borrow R1,050 from Money line and pay it back in 6 months, you’ll also pay R330 for their service. This means you’re actually paying an interest rate of 164% each year.

    Conclusion

    SASSA itself doesn’t give out loans, but it helps people who get social grants to borrow money from banks. These loans are used to help people quickly when you need cash. The loans can be small or big, and you have to pay them back over time. Each lender has its own rules about how much you can borrow. Also, they have a policy on how long you have to pay it back, and how much interest you’ll pay. 

    You need to prove you’re a South African citizen, show you can pay back the loan, and have some documents. You can apply for these loans either through your phone, in person at a SASSA office. Before you borrow, make sure you understand everything about the loan, like how long you have to pay it back and how much it will cost you in the end.

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