SASSA Loans Apply Online
The South Africa Social Security Agency (SASSA) is the government agency mandated by law to administer and pay beneficiaries grants especially to those who are need of financial support. The grant includes old age, disability , child , foster child etc.
Can you use your sassa grants to secure loan?
Since the commencement of the SASSA, people who are accessing grants are trying hard to see if they can apply for loan scheme to venture into small business or to somewhat support their families together with the money from SASSA. As with any other financial venture of that sort, care must be taken whenever you want sign any loan agreement.
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Why Loan Applications for SASSA Card holders Has Become A Worry?
In 2017, SASSA was alarmed by the spike of number of SASSA recipients calling for proof of payment from SASSA offices. In view of this, SASSA made an attempt to delve into the matter to investigate what was cause. They found out that, some of the beneficiaries are using their sassa cards as collateral to secure for loan. It was also revealed that some of these lenders are ending the money at very high and outrageous interest rates with additional conditionality such as funeral insurance policy and another card.
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Below are the true facts or what the laws permits as far as SASSA loans are concerned.
- According to Section 20 clause 0 of the Social Assistant Act, (Act 13, 2004), it is unlawful to use one’s social grant funds as collateral to apply for loan. Since, SASSA is also a social scheme, it can be used legally to secure a loan.
- Loan lenders can be arrested and prosecuted if they found with SASSA cards with sole aim to secure loans for the respective recipients.
- It is against the laws of the land for money lenders to have in possessions the documents of pensioners.
- A grant can be stopped, suspended or withheld if found to be used to secure loan facility.
In spite of these, if you still want to apply for a loan, the following must be taken into account to protect you the borrower so that the money lenders do not take undue advantage.