Step-By-Step Guide to Apply For SASSA Loans Via Cellphone – Apply with Caution

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 Loans Via Cellphone

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:

  • First of all, dial the USSD code *130*3737*1# from your phone.
  • Now, a prompt will ask you to provide your ID number. Provide your ID number in this prompt.
  • After that, you will be asked to press one to let the Moneyline access your credit check and bank statement. Although it’s your sensitive information, you will have to press one to provide them access if you are willing to get a loan.
  • Now, the prompt will ask for your ATM PIN. You will have to provide them with your PIN as well for security reasons. (It means they will have access to your account now; you must think twice before applying for a loan, as they will take all your sensitive information).
  • Finally, you need to wait for an SMS. You will receive an SMS with the loan agreement and repayment details. Please read the terms and conditions carefully and do not sign the agreement before you fully understand it.
  • Sign the loan agreement document and reply with your full name.
  • That’s all! Now, you will have to wait for the Moneyline decision. Most loan applications are approved within 24 hours, but it may take longer if they have many applications pending. 

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:

  • Dial the USSD code *120*3737*1# from your cell phone.
  • Now, select option 5 to provide your ID number. Provide your ID number in this prompt.
  • After providing your ID number, you will be asked to enter the total amount you want.
  • Now, you will be asked to provide your total monthly expense amount.
  • After that, you need to wait for an SMS. You will receive an SMS with the loan agreement and repayment details. Please read the agreement documentation carefully and only sign the documents after you agree.
  • Sign the loan agreement document and reply with your full name.
  • That’s all! Now, you will have to wait for the Easy Pay decision. Most loan applications are approved within 24 hours, but it may take longer if they have many applications pending. 

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:

  • You should be at least 18 years old.
  • You must be a South African Citizen and have a valid South African Identity Card Document.
  • You should have a consistent source of income.
  • You must have a bank account in your name.
  • You should have an active cell phone number in your name.
  • You must not have any outstanding loans associated with your SASSA grant.
  • You must be receiving a SASSA grant such as an Old Age, Disability, Child Support Grant, Foster Child Grant, SRD grant, or any valid SASSA grant.

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.

Conclusion

So, now you know everything about SASSA loans and can decide if that’s a good option for you. These loans come with hefty fees and interest rates, making them a risky option for many borrowers. Unless you are facing exceptional circumstances, exploring other avenues might be wise.

Also, these loans are not provided by themselves but only by third parties and have a great factor of risk involved as well as you need to provide them with your personal and banking details.

If you are in dire need and need quick money, I’ll advise you to explore other options and loans and avoid taking this loan. Still, if you are ready to take this risk and agree to pay higher interest fees, then I also explained the step-by-step method to avail of these loans. You can follow the steps and get your loan approved quickly!

FAQs

The purpose of SASSA loans via cellphone is to provide financial assistance to eligible South African citizens who are SASSA grant holders. These loans are not directly offered by SASSA but by third-party lenders, including Moneyline, Shoprite, and Capitec etc.

To apply for Moneyline SASSA loans, dial the USSD code *130*3737*1# from your phone, follow the prompts to provide your ID number, grant access to your credit check and bank statement, enter your ATM PIN, and wait for an SMS with the loan agreement. Carefully review the terms before signing the agreement.

To qualify for SASSA loans, you must be at least 18 years old, a South African citizen with a valid ID, have a consistent source of income, possess a bank account, maintain an active cellphone number, and not have any outstanding loans associated with your SASSA grant.

Loan repayments are automatically deducted from your SASSA grant amount each month. It’s important to ensure timely repayments to avoid negative consequences such as affecting your credit score, legal action, and future loan eligibility.

SASSA loans, provided by third-party lenders, come with high fees and interest rates ranging from 5% to 200%. These loans may lead to a cycle of debt, affecting your financial stability. It’s essential to carefully consider the terms and conditions before taking a loan and explore alternative options if possible.

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9 Comments

  5. Hi its my first time that I want to apply for a sassa loan please I’m getting disability grant every month

    Reply

    1. Hi Magriet,

      May I know the reason you are applying for SASSA loan? As I don’t recommend it due to its high interest rate.

      If you are getting disability grant but can not take care for yourself then you can also apply for Grant-In-Aid, so please explore this option as well before applying for any loan. Read the eligibility criteria and applying process for Grant-In-Aid here: https://sassagrantstatuscheck.co.za/grant-in-aid/

      Also please keep in mind that the loan is not offered by SASSA but offer by third party financial institutes. They give you loan only when you are active SASSA grant holder.

      Reply

  6. Hi I would like to make a loan. I am a disability grant recipient and need money to pay for medical bills please. I need R5500.00 how or where can I get a loan of such an amount?

    Reply

    1. Hi Ishaaq,

      As I already adviced in my article that interest rate is too high for these loans. I will never suggest you to take this loan. It could be a better option to take some loan from your relative or your friends. If you are already disability grant recipient and can’t take care yourself, you can also explore the option to avail Grant-In-Aid. Please read this article: https://sassagrantstatuscheck.co.za/grant-in-aid/

      Please let me know if there is something else I can help.

      Thank you!

      Reply

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