There has been an increase in the number of lenders using South African Social Security Agency (SASSA) cards as collateral for credit.
This is how the confusion about the Capitec SASSA Loan came about. One of the fastest growing banking institutions in South Africa, Capitec is gaining traction as a leading bank. The institution offers a wide array of services, including personal loans.
These are regulated loans in accordance with regulations set by the National Credit Regulator (NCR).
The Capitec SASSA Loan is an unlawful facility as it is not recognised by SASSA.
It is unlawful to pledge your social grant. Beneficiaries also need to be aware that a grant can be withheld, suspended or stopped if unlawful activities are associated with an account.
In many cases, grant beneficiaries are offered loans with high interest rates. Prerequisites to getting the money may include signing up for a funeral insurance policy and an additional card.
Other scams include double debiting of accounts, with no recourse for individuals to get their money back.
It’s important for grant beneficiaries to know that handing over SASSA cards as collateral is illegal; as money lenders continue to deduct payments long after the debt has been settled.
Any money lender is required by law to present or display their NCR certificate.
If one is facing financial trouble, they are encouraged to seek debt counselling services.
Capitec Bank is a leading South African financial institution that offers its more than 7 million clients a range of products and services. Since 2001 the bank has grown steadily and is now one of the most popular banking institutions- largely owing to its emphasis on simplified banking solutions.
Formed in April 2005, the South African Social Security Agency (SASSA) is an institution that is responsible for the administration of various social grants to qualifying South Africans.
The institution has a vision to be a leader in the delivery of social security services. SASSA provides social grants to more than 15 million recipients nationally.
Reporting to the Ministry of Social Development, SASSA is essentially tasked with ensuring that the government pays the right grant, to the right person, at a location which is most convenient to that person.