How to Spot Loan Scams Quickly in South Africa

How would you know whether the lender or loan provider is legitimate and registered with the National Credit Regulator (NCR)?

Today I want to show you the exact and simple steps to take to verify a credit provider in South Africa.

There are lots of loan scammers with different tactics to grab your attention in giving them your details and money. But at the end of the day, all lenders of money must be registered with the NCR in South Africa.

Let’s get started.

Verify Registered Credit Providers

To verify a legitimate loan provider, please visit and search for the lender’s name or registered number.

NCR offers a public database of registered (over 8000) and canceled credit providers (over 2000) in South Africa.

Institutions that are actively offering loans and any type of credit will be listed in this database for you to find.

Review the lender’s details and confirm their registration status.

Common Types of Loan Scams

Here’s a list of the most common types of loans scams in South Africa and how you can quickly identify them.

No Credit Checks

Any lender that’s not interested in your credit history is a loan scammer.

According to the credit regulations in the country, lenders must practice their business responsibly and shouldn’t offer any client a loan they cannot afford to pay back.

So if a lender isn’t interested in your credit profile, how are they going to assess your loan application and offer you the right loan?

Following that, they’ll begin asking you for upfront fees.

Upfront Fees

Quick question, how are you supposed to afford an upfront fee when you’re borrowing money?

Legitimate lenders process loan fees properly and transparency in such, they’ll explain everything to you before signing any agreement.

And mostly, they’ll include the loan initiation fee in your total loan amount so that you can pay it back with installments.

No upfront fee to supposedly secure the loan.


In your process of identifying a legitimate credit provider, you must always look for company reviews online.

Use social media or Hello Peter for legitimate reviews about the company and make your decision there.

Loan reviews will help you understand how the lender works and treat customers. If the ratings are bad, then play far from that lender because you’re likely to run into the same issues.