How to Apply for SASSA Loans Via Cellphone

How to Apply for SASSA Loans Via Cellphone? Do you want to apply for SASSA loans via your mobile phone? SASSA does not offer loans, only social grants to eligible South African citizens. Lenders such as MoneyLine, Shoprite, Capitec and others offer these loans. You can only receive these loans if you are an active beneficiary of a SASSA grant.

As SASSA itself points out, applying for a loan can lead to unnecessary deductions from social grants. In any case, if you want to apply for a loan, you should do everything on your own and consult with a financial expert first.

Here is a step-by-step guide to applying for SASSA loans.

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A Step-by-Step Process to Apply for SASSA Loans Via USSD

The SASSA loan can be applied for via your cellphone if you are too old, disabled, or unable to visit any loan provider in person. Step-by-step instructions are provided for both methods, so you just need to follow them.

1. MoneyLine SASSA Loan Application

In order to apply for a MoneyLine SASSA loan, follow these steps:

• To begin with, dial 1303737*1# from your phone.
• A prompt will appear asking for your ID number. In this prompt, enter your ID number.
• You will then be asked to press one to allow MoneyLine access to your credit report and bank statement. If you wish to obtain a loan, you will have to press one to give them access to your sensitive information.
• Your ATM PIN will now be requested. For security reasons, you must also give them your PIN. As they will have access to all your sensitive information, you should think twice before applying for a loan.
• As a final step, you will receive a text message. A SMS with repayment details and the loan agreement will be sent to you. Don’t sign the contract until you have thoroughly read the terms and conditions.
• Your full name must be written on the loan agreement document.
• All right, that’s all for now! The MoneyLine decision must now be awaited. A majority of loan applications are approved within 24 hours, but if there are many pending applications, it may take longer. 

An SMS will confirm your approval and deposit the loan amount into your account. The reason for rejection will be communicated to you via SMS if you are rejected.

2. SASSA EasyPay Loan Application

Following are the steps for applying for Net1 Easy Pay SASSA loans:

• Simply dial 1203737*1# from your cell phone.
• The next step is to provide your ID number by selecting option 5. This prompt asks for your ID number.
• The total amount will be asked after you provide your ID number.
• Please provide your total monthly expense amount now.
• You will then receive an SMS. The loan agreement and repayment details will be sent to you via SMS. You should carefully read the agreement documentation before signing.
• Your full name must be written on the loan agreement document.
• That’s it! The Easy Pay decision will take some time. If they have many applications pending, approval may take longer than 24 hours. 

If your loan application is approved, the loan amount will be deposited into your bank account, and a confirmation SMS will be sent to your phone. The reason for rejection will be provided in an SMS if you are rejected.

The above methods can also be used to get SASSA loans for child grants.

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SASSA Loan Eligibility Criteria

In order to qualify for these SASSA Loans, you must meet certain criteria. In order to qualify for the loan, you must meet the following criteria:

• At least 18 years of age is required.
• In order to apply, you must be a South African citizen and possess a valid South African Identity Card.
• Make sure you have a steady source of income.
• In order to open a bank account, you must have your own name on it.
• A cell phone number in your name should be active.
• SASSA grants cannot be associated with outstanding loans.
• An Old Age, Disability, Child Support, Foster Child, SRD, or other SASSA grant is required.

A loan provider (any bank or financial institution providing you with a loan based on SASSA grant income) will also check your previous debt. Your debt-to-income ratio must meet their criteria in order to qualify for the loan. Your monthly income will determine the loan amount.

Amount of SASSA Loan

You can borrow a different amount depending on the private lender you choose as a SASSA beneficiary. Your income and credit history also play a role. For borrowers with good credit and a stable income, some lenders may offer loans between R250 and R1000, while others may offer up to R25 000.

Before applying for a loan, you should compare lenders and check their official websites.

Most of these loans have high monthly fees as well as the highest interest rates, which range from 5% to 35%, and in some cases even 200%. To decide whether a loan offer is worth it for you, you should understand the specific terms and conditions, including interest rates and fees. Otherwise, you may get stuck in high debt.

Loan Repayment

Your SASSA grant amount will be used to repay the loan. Every month, it will be deducted from your social grant payment. You should keep in mind that if you don’t pay a loan, it may affect your credit score, legal action, and your ability to obtain future loans.

It is therefore necessary to decide first if you can repay the loan on time and to only take the loan if you are able to do so.

SASSA Loans: Dark Sides

SASSA grants are not provided by SASSA itself, but by third-party lenders who offer you loans when you have an active SASSA grant. While these loans can help you in an emergency, they also have some negative consequences. The interest rates and fees on their loans are ridiculously high.

A study by Black Sash found that borrowing up to R8000 for 6 months is subject to the National Credit Act (NCR). NCR rules allow lenders to charge 5% monthly interest, a one-time R150 initiation fee, and a monthly service fee of R50. Adding R750 to your R1000 loan results in an additional charge of R750. Due to the high cost of short-term loans despite small loan amounts, you would pay 75% more than you borrowed.

A high-interest loan can create a debt snowball effect. Before applying, consider the long-term impact on your financial stability.

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Conclusion

Now that you know all about SASSA loans, it’s time to decide if they’re right for you. Due to their high interest rates and fees, these loans are risky for many borrowers. Unless you’re facing exceptional circumstances, you may want to explore other options.

These loans are not provided by the company itself, but by third parties, and they come with a lot of risk, in addition to the fact that you’re asked to provide your personal and banking details.

If you’re in a desperate financial situation and need money fast, I advise you to explore other options and loans instead of applying for this loan. The step-by-step method of obtaining these loans is also explained if you’re willing to take this risk and pay higher interest rates. If you follow the steps, you’ll be approved for your loan in no time!