Loan requirements in South Africa are set by each credit provider, but the usual list is the same: ID, proof of income, bank statements and proof of address. The provider must also complete an affordability assessment under the National Credit Act (NCA), so meeting the list does not guarantee approval.
This page explains the common requirements and what the National Credit Regulator (NCR) expects of lenders. For product-specific detail see loans.
Eligibility Requirements at a Glance
Criteria differ per lender, but you will generally need to be:
- A valid South African ID holder or otherwise able to meet the lender’s identity rules (Nedbank also accepts a passport on its personal loan).
- Aged 18 or older (Absa personal loans).
- Earning a verifiable income. Absa requires at least R2,000 a month for loans of 12 months or more and R1,500 a month for loans of 2 to 6 months.
- Dealing with a registered credit provider. The NCR registers credit providers and publishes a register of them.
Examples of amounts: Standard Bank personal loans range from R1,000 to R300,000 (see its personal loans page), and Absa lists up to R350,000 (see Absa personal loans).
Income and Affordability Requirements
A lender must take practical steps to assess whether you can afford the new instalment. According to the NCR affordability release, discretionary income is gross income minus tax, UIF, maintenance and all other payment obligations, and debts shown by a registered credit bureau must be considered.
The regulations include minimum living-expense norms based on gross monthly income. If your declared expenses are lower, the provider should have you complete a questionnaire. They do not apply to school and student loans, among other exceptions.
How much you must earn to qualify therefore depends on the lender and the loan amount. The Absa figures above are one example.
Credit and Financial Requirements
Lenders check your credit record. The NCR does not publish a minimum credit score for a loan, and none was found on the lenders’ pages used here, so ask the lender how it assesses you. Criteria are the lender’s own, within the NCA.
Disclose all your obligations accurately. The NCR warns that consumers who do not truthfully disclose information may lose the protection of the NCA.
You are entitled to your credit bureau information free of charge every twelve months. An extra request within 12 months may be charged a fee of no more than R20, and you can challenge information and ask for proof of its accuracy (see the NCR guide to the Act).
Documents and Verification Required
For salaried applicants the NCR says lenders should ask for your latest three payslips or bank statements showing your latest three salary deposits. Self-employed, informally employed or unpaid-slip consumers should be asked for three months’ bank statements or the latest financial statements. If your income varies materially, the lender should average your gross income over at least three pay periods.
- ID (and proof of residence, which Absa and Standard Bank want not older than three months for non-customers or branch applications).
- Payslips, proof of income or bank statements, as above.
- For self-employed applicants at Absa, an ITA34 and six months’ financial statements.
How to Apply and Improve Approval Readiness
To qualify for a loan, choose a registered credit provider, check your free credit report first, gather the documents above, and apply through the lender’s own app, website or branch. Apply to one lender at a time and ask for the reason if you are declined.
Agri loans (such as Land Bank products) and online short-term or “temporary” loans have their own rules that were not confirmed from official pages for this guide. For those, ask the provider for its requirements and check that it is on the NCR register.
Frequently Asked Questions
What are the loan requirements in South Africa?
Usually ID, proof of income, bank statements and proof of address, plus the lender’s affordability and credit checks. Each lender sets its own criteria.
What are the loan criteria?
The lender’s own rules, which must include an affordability check of your discretionary income and a credit bureau check under the NCA.
How much must I earn to qualify for a loan?
It varies by lender. Absa requires at least R2,000 a month for personal loans of 12 months or more and R1,500 a month for 2 to 6 month loans.
What is the minimum credit score for a loan?
No official minimum is published. Nedbank states it sets no minimum score for student loans but may decline an applicant with irresponsible borrowing history.
How can I qualify for a loan?
Check your credit report, reduce existing debt, gather the documents above and ask the lender what it requires. The lender decides after its affordability assessment.
What about agri loans and temporary online loans?
Requirements for agri loans and short-term online loans were not confirmed from official sources. Ask the provider directly and check it is registered with the NCR.
Can I get my credit report for free?
Yes. You are entitled to your credit bureau information free of charge every twelve months, with a maximum R20 fee for extra requests in that period.
This page is general information and not financial advice. Confirm current criteria, rates, fees and terms with the lender. See loan requirements and browse all finance and funding requirements.