Loans for pensioners and SASSA grant recipients

Can you get a loan on a pension or SASSA grant in South Africa? The rules, affordability checks and illegal practices to avoid.

• Some registered lenders accept pension income. Affordability rules still apply.
• No lender may hold your SASSA card or PIN.
• Deductions from social grants for loan repayments are not allowed.

Pension income

A government or private pension counts as regular income, so some registered lenders accept it for personal loans. The lender must still do a full affordability assessment and may offer shorter terms or lower amounts.

SASSA grants

Social grants are meant to cover basic needs. Most registered lenders won't treat grant income as enough to repay credit, and SASSA does not allow loan deductions from grant payments. Anyone offering 'SASSA loans' in exchange for your card is acting illegally.

Protect yourself

• Never hand over your SASSA card, bank card or PIN.
• Ask for the NCR registration number and check it.
• Get a written quote showing the total you will repay.
• Report abuse to the NCR or SASSA.

Is there an age limit for loans?

The law sets no maximum age, but lenders consider the loan term against your income, and credit life cover may cost more or be limited.