PEP does not lend money itself. Loans offered in PEP stores are provided by Capfin, a registered credit provider, with PEP acting as the point of application and document handover. The credit agreement is between you and Capfin.
That is why the requirements below are Capfin’s requirements. PEP’s role is to let you apply and submit documents at a store counter rather than online or at a branch.
Eligibility Requirements at a Glance
The criteria are the standard ones for regulated unsecured lending.
- Be 18 years or older
- Hold a valid South African ID document or smart card
- Have a regular, verifiable income paid into a bank account in your own name
- Be permanently employed, or have income the provider accepts as verifiable
- Not be under debt review, sequestration or administration
- Have a working cellphone number for one-time PIN verification
Income and Affordability Requirements
The provider must establish that you can afford the instalment after your existing commitments.
The Act requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions such as PAYE and UIF, subtract the minimum living expenses prescribed in the affordability assessment regulations, and subtract existing monthly debt repayments. Lending without that assessment is reckless lending and is prohibited.
The three months of bank statements are the core of the assessment. Returned debit orders, unarranged overdrafts and existing loan repayments visible on those statements all count against the application.
Where income varies month to month, the assessment usually works from an average across the statements provided.
Credit and Financial Requirements
A credit bureau check is part of every application, and the outcome affects both approval and the amount offered.
The agreement is regulated by the National Credit Act 34 of 2005 and the provider must be registered with the National Credit Regulator (NCR). Verify registration free of charge at ncr.org.za before you sign.
Repayment is collected by authenticated debit order under DebiCheck. You approve the mandate through your own bank or banking app before the first collection, so nothing can be taken without your authorisation. If the mandate is not approved, the loan is not advanced.
Ask for the initiation fee, monthly service fee, interest rate and credit life premium to be itemised, and for the total repayable amount over the full term.
Documents and Verification Required
You can apply by SMS or online and then submit documents at a PEP store counter, which is the usual route.
- South African ID document or smart card
- Latest three months’ bank statements showing salary deposits
- Latest payslip, or the latest three where income varies
- Proof of residence where requested
- Your own cellphone, for the verification message
How to Apply and Improve Approval Readiness
Apply through the Capfin channels, then take your documents to any PEP store. Staff scan and submit them; the credit decision is made by Capfin, not by the store.
- Take clear, complete and recent bank statements — incomplete statements are the main cause of rejection at this step
- Approve the DebiCheck mandate promptly when your bank prompts you
- Check your credit report first and dispute any errors
- Ask for the total repayable amount in writing before accepting
- Borrow the smallest amount over the shortest term you can manage
- Confirm the provider’s NCR registration at ncr.org.za
Frequently Asked Questions
Is the loan from PEP or from Capfin?
From Capfin. PEP is the application and document submission point; the credit agreement, the money and the collection are Capfin’s.
Can I repay the loan at a PEP store?
Repayment is collected by debit order under the agreement. Confirm with Capfin what alternative payment arrangements, if any, are available.
Do I need to buy anything at PEP to apply?
No. The application is a separate service from retail purchases.
What if my application is declined?
You are entitled to be told the reason and which credit bureau was used. Obtain your report from that bureau, correct any errors, clear arrears, and reapply once the profile improves.
Loan amounts, terms, rates and fees are set by the credit provider and change. Confirm the current criteria with Capfin, and read the pre-agreement quotation before signing.