I guess the big question here is: Does SASSA offer loans to beneficiaries?
And the short answer is a big NO!
If you know the purpose and mission of the agency, then you’ll understand why it wouldn’t make sense for them and their partners to offer you any type of credit.
Firstly, SASSA is a beacon of hope for many South Africans, ensuring that social grants get to those who need them most. The agency’s prime focus has been to provide financial support to vulnerable populations in South Africa.
Secondly, a loan is when you borrow money from a lender or credit provider to repay with interest in installments. So do you have money to pay that interest while you still depend on the social grant?
Let’s get started.
Why SASSA Beneficiaries Seek Loans
It’s no secret that life can be unpredictable.
Even with the regular support of a SASSA grant, unexpected expenses can throw anyone off balance – be it a sudden medical emergency, an urgent home repair, or school fees.
That’s where the appeal of a quick loan comes in, however, SASSA will not help you with a loan in this regard because you’re unemployed and solely depend on the grant to live by.
The Controversy Surrounding SASSA Loans
There’s been quite a bit of chatter about private lenders zeroing in on SASSA beneficiaries. Also, other publications claim some lenders offer SASSA loans to you, the beneficiaries.
Why the concern?
Well, some of these lenders haven’t always had the best interests of the recipients at heart, leading to stories of predatory lending and high-interest nightmares.
It’s a gray area that’s important to navigate with caution.
It’s worth noting that SASSA itself isn’t in the loan business. They distribute social grants. That said, the South African government is fully aware of the lending landscape and has implemented regulations to safeguard beneficiaries from shady deals.
Knowledge of these regulations can be a beneficiary’s first line of defense.
What About Shoprite & Finbond Bank?
You may have read some articles online claiming you can qualify for SASSA loans at Shoprite and Finbond Bank.
Shoprite doesn’t offer any type of loan for SASSA beneficiaries except using their money market service to collect your grant.
Finbond Mutual Bank is a registered credit provider offering personal loans to qualifying and permanently employed individuals. They do not loan products to SASSA beneficiaries.
Identifying Illegal Loan Lenders
Once you get an offer from some lender for a SASSA loan, quickly follow these steps to verify their registration and report them to the authorities.
Visit the National Credit Regulator’s website which lists all the registered and actively operating lenders in the country.
Search the lender’s name or NCR number on the portal and if it’s not found, you must know it’s a scam.
Alternatives to Personal Loans
Wait, before you plan to take on a personal loan, there are other financial avenues to explore and consider.
Maybe it’s a community lending circle or a small, local cooperative. While each has its pros and cons, below are some of the alternatives to loans to consider first.
- Savings: If you have savings set aside, it might be a good time to use them, especially if the cost of borrowing is high.
- Sell Unused or Unwanted Items: Platforms like Gumtree, or Facebook Marketplace allow you to sell items you no longer need or use.
- Negotiate with Creditors: If you’re struggling with bills, contact your creditors to see if you can negotiate a payment plan or extension.
- Ask for Help from Friends or Family: This can be a delicate matter, but sometimes close ones might be willing to assist either as a gift or an informal loan without interest.
- Cut Non-Essential Spending: Review your budget and reduce or eliminate any non-essential expenses.
- Freelance or Part-time Work: Look for opportunities to earn extra money, such as freelancing, tutoring, or taking up part-time gigs.
- Rent Out a Room or Space: If you have extra space in your home, consider renting it out either long-term or through platforms like Airbnb.
- Stokvels: While these are traditionally savings groups, they can sometimes be a source of financial assistance in times of need if you’re a member.
- Pawn Your Assets: As a last resort, you might consider pawning an asset you own for a short period to get the funds you need.
- Seek Counseling or Financial Planning Advice: Visit a financial counselor or advisor who can provide guidance tailored to your situation.
- Return Recent Purchases: If you’ve recently purchased items you haven’t used, consider returning them if the return policy allows.
- Reduce Monthly Bills: Look for ways to reduce monthly commitments – consider downgrading your phone plan, cable package, or any subscription services you might have.
When evaluating these alternatives, consider your personal circumstances, needs, and priorities. It’s essential to make decisions that align with your financial well-being and future goals.
