Are you looking to apply for SASSA loans via Cellphone? If yes, then first you need to know that SASSA itself does not offer any loan, they only offer social grants to eligible South African Citizens. The loans are offered by third parties such as Moneyline, Shoprite, Capitec, and some other lenders. These loans are only rewarded if you are an active SASSA grant holder.
SASSA itself urged its beneficiaries not to take any loans as it might result in unnecessary deductions on their social grants. But still, if you want to take a loan, then you must take it all on your own and consult a financial expert before taking any loan.
Below, I will discuss the step-by-step procedure which is being used to apply for the SASSA loans.
Note: Please keep in mind that people named it a SASSA loan, but SASSA doesn’t provide loans itself. SASSA Loan word used throughout this article is only to mention the third party loan providers.
Step-By-Step Process to Take SASSA Loans Via Cellphone USSD Method
If you are too old, have any disability, or for some reason unable to visit any loan provider yourself, then there are two methods you can use to apply for the SASSA loan via your cellphone. I explained both methods step-by-step, so you just need to follow them.
1. Apply For Moneyline SASSA Loans
Here are the steps you need to follow to apply for Moneyline SASSA loans:
Once approved, you will receive an SMS with confirmation, and the loan amount will be deposited into your bank account. If rejected, you will receive an SMS with the reason for rejection.
2. Apply For EasyPay Loans SASSA
To apply for Net1 Easy Pay SASSA loan application, follow the below steps:
Once your loan application is approved, the loan amount will be deposited to your bank, and a confirmation SMS will be sent to your phone number. In case of rejection, you will receive an SMS with a clear reason for rejection.
You can use the above methods to get the SASSA loans for child grants as well.
Eligibility Criteria to Take these SASSA Loans
There are eligibility criteria to qualify for these SASSA loans. You can qualify for the loan if you fulfill the below criteria:
In addition to these requirements, the loan provider (any bank or financial institution providing you the loan based on your SASSA grant income) will also check your previous debt. You will only be eligible for the loan if your debt-to-income ratio meets their criteria. The loan amount will be based on your current monthly income.
SASSA Loan Amount
The amount you can borrow as a SASSA beneficiary varies depending on the private lender you choose. It also depends on your income and credit history. Some lenders may offer loans from R250 to R1000, while others may offer up to R25,000 for borrowers with good credit and stable income.
So, It’s important to compare lenders and review their official websites or resources before applying for any loan.
Please be aware that most of the loans have high monthly fees as well as the highest interest rates, which are 5% to 35%, and in some conditions, they are even 200%. So you must understand the specific terms and conditions, including interest rates and fees, associated with each loan offer to decide if that’s something valuable for you; otherwise, you may be trapped in high debts.
Repayment of Loan
The repayment of the loan will be automatically done from your SASSA grant amount. It will be deducted each month when you receive your social grant payment. Please keep in mind that if you fail to pay a loan, it may have bad consequences, such as affecting your credit score, legal action, and your eligibility for future loans.
So you must decide first if you are able to pay the loan in a timely manner and take it only if you can easily afford to repay the loan amount.
Some Dark Sides of SASSA Loan
As I already discussed, these loans are not provided by SASSA itself but provided by third party lenders who offer you a loan when you have an active SASSA grant. So, while these loans can help you in an emergency, they also have some negative consequences. They charge really high fees and have ridiculously higher interest rates.
According to a study by the Black Sash, borrowing up to R8,000 for 6 months under the National Credit Act (NCR) falls under “short term credit.” According to NCR rules, lenders can charge 5% monthly interest, a one-time R150 initiation fee, and R50 monthly service fees. This translates to R750 in additional charges on top of your original R1,000 loan. In total, you’d repay 75% more than what you borrowed, highlighting the surprisingly high cost of short-term loans despite small loan amounts.
Taking on a high-interest loan can create a snowball effect of debt. Consider the long-term impact on your financial stability before applying.