SASSA Loans in 2023
There are many people who are under the impression that there are SASSA Loans offered by the South African Social Security Agency (SASSA).
The South African Social Security Agency is known as SASSA.
In order to raise the standard of life for groups of individuals who are "prone to poverty and in need of governmental help," SASSA's job is to distribute social grants to them.
However though, many people who are receiving this state money are still searching for SASSA loans in South Africa.
People who rely on social grants allege they struggle to make ends meet with their grants and must turn to taking out loans in order to do so.
Several people apply for loans at the same Net1 locations where they pick up their social handouts on grant pay day.
They normally pay R462 to borrow R1 400 and return it in six months.
There are around 415,000 people with green cards who have loans through EasyPay Everywhere.
Most days, long lines build up with people desperate for SASSA loans in front of the Net1 Financial Services office in Pretoria's Soshanguve Plaza.
People come here to receive their social benefits, but many also use their EasyPay Everywhere green cards to borrow money because their meager subsidies are insufficient to cover their daily expenses.
On the first Friday in June, there was a line of approximately 250 individuals waiting to get old-age and disability benefits, and there was a separate line of about 100 people waiting to borrow money against their social benefits - a contentious but lucrative industry.
Loan lines develop hours before the office opens at 8 a.m. on the majority of days.
Sometimes people have to come back the next day since the office cannot handle everyone in line by 4pm.
68-year-old Annah Zondo, who lives in a shanty in Soutpan, Tswaing, claims her family reduced the number of meals they provided her each day to two, yet she still found herself in need of a loan.
On the day of grant disbursement, her family of seven had nothing to eat.
A grant for seniors costs R1, 980, after deductions, she said she got roughly R1,500 in June.
Moneyline Financial Services (Pty) Ltd, a division of the Lesaka Group (Net1's former name), claimed to provide SASSA loans with terms up to six months and amounts ranging from R100 to a maximum of R2,000.
According to the business, "we do not charge interest on the loans," but there are "service costs"
A potential borrower must already be an EasyPay Everywhere client in order to apply for a Moneyline loan and "has to establish that they have three months' worth of income, can afford the loan, and has a credit history in good standing."
Lesaka Technologies is reportedly seeking to increase the number of EasyPay customers as well as microloan customers and to promote "cross selling," such as burial insurance, according to Net1's most recent quarterly report.
In the first quarter of 2022, 5,500 new solo policies were added.
According to the study, the firm has 1.1 million active users and 415,000 active loans from EasyPay Everywhere consumers as of the end of March 2022, for a total loan book of R359 million.
The typical loan is worth R1,417.
SASSA Loans Conclusion
South African Social Security Agency (SASSA), however there loan providers who make arrangement with people earning grants to offer those loans.
