You’re required to submit at least 3 latest payslips for application for any type of loan or credit in South Africa. So you can imagine how tough it will become to get a loan without a payslip.
However, it’s important to note that there are over 6500 registered credit providers in South Africa offering various solutions for different scenarios. All these lenders operate their businesses in full compliance with the National Credit Regulator in South Africa.
In short: There are companies that offer legit loans without payslip within stricter terms and conditions.
Let’s dive right in.
Understanding Loans Without Payslip
As mentioned, these types of loans are not easy to get approved for, especially when you’re not permanently employed but self-employed.
Banks and other lenders require payslips and bank statements to assess affordability for the loan amount and interest rate calculations.
Loans without payslips are popularly referred to as secured loans, whereby you’ll be required to put forward collateral or assets to qualify for the loan.
Yes, you have a limited opportunity of qualifying for the loan when you don’t have a payslip but possible to get approved if you provide the surity you’ll pay back the money.
Types of Loans Without Payslip
- Personal loans – These are secured loans that require collateral to qualify for and get approved. Often offered at a low interest rate compared to unsecured personal loans because there’s some sort of guarantee the lender will get their money back should you default.
- Peer-to-Peer – Platforms such as Funderjet offer peer-to-peer lending and investing opportunities in South Africa.
- Pawn loans – Similar to secure loans, you’ll take an asset or property and get the loan amount, the value of the submitted property. If your car is valued at R89,000 then you might qualify for a paw loan for R75,000 against that property.
- Payday loans – A loan for one month. You’re required to repay the loan on your income date and do not need a payslip but proof of income in a form of a bank statement.
The Average Loan Interest Rate
In South Africa, the average loan interest rate is between 17% to 24.5%.
The interest rate is calculated per individual customer risk profile and it may well go over 28% depending on your credit history.
Personal Loan Requirement
To qualify for any type of loan, you would need to qualify for certain minimum requirements by the lender. If you don’t have a pay slip, it’s also okay, you just need to provide proof of income.
Anyway, here are the basic loan requirements in South Africa.
- Must be 18 years and older
- Must have proof of residential address
- Must have a bank account in your name
- Prove of income
The above information will only get you pre-approved for a personal loan. Then your debt-to-income ratio and affordability assessments will follow to ensure your ability to repay the loaned amount.
How to Prove Income
To be approved for any loan you will need to reveal your financial status.
If you can’t prove your income with a payslip, you can do so through other documents that confirm how much you earn either through your bank statement, pension /disability fund statements, or a letter from your employer.
Some lenders are willing to offer loans with just an ID and salary slip. Depending on your lender, you might have to open a bank account so you can at least submit a one-month bank statement instead of a three-month bank statement.
Getting Loans Without Pay Slip
Below is a list of lenders that offer a loan without payslip in South Africa.
- RCS loans
- Lime24 Loans
- Funderjet
As mentioned, the information you provide to the credit provider will only get you pre-approved, especially when your credit score rating is good.
However, further credit checks will be conducted to protect your consumer rights and the interest of the lender – Always.
What if You’re Blacklisted?
While being blacklisted can be used negatively, it’s important to understand your credit status and you’re considered a high risk to be offered an unsecured loan.
Maybe you’ve bad debt payments in your credit history that led to banks and lenders not trusting you with loans.
It’s going to become even more difficult for you to get the loan without a payslip when considered blacklisted. You might want to try alternatives to personal loans such as credit cards.