Short-term loans in South Africa are regulated by the National Credit Act (NCA). Every licensed lender follows the same affordability rules. Here is what they all check.
You must be at least 18 by law. In practice most short-term lenders set the minimum higher — typically 20 years — and an upper limit of around 64. The reason is repayment capacity: lenders prefer borrowers in stable employment.
You need to be formally employed for at least 3 months with the current employer. Casual, contract, or undocumented work is rarely enough. If you have just started a new job, lenders may decline — wait until you have crossed the 3-month mark.
Lenders need to see income, not just hear about it. The standard documents are:
Lenders read your bank statement carefully. They look for: salary on a consistent date, room between your income and your existing commitments, and the absence of returned debit orders. Heavy gambling activity or many short-term loans showing on the statement may lead to a decline.
South Africa has four major credit bureaux (TransUnion, Experian, XDS, Compuscan). Lenders check at least one. Active defaults, judgments or administration orders usually mean a decline. A few late payments in the past are not automatically disqualifying.
Under the NCA, lenders must verify that you can repay the loan without becoming over-indebted. Your monthly disposable income (after existing debts and living expenses) must cover the new repayment.
Common reasons for decline and what to do: