Loans for Unemployed with No Income or Payslip
By MoneyToday Team • Dec 02, 2024 • 6 min read
The Hard Truth
If you have absolutely zero income, you cannot legally get a personal loan in South Africa.
The National Credit Act (NCA) makes it illegal for a registered lender to give you money if you cannot prove you can pay it back. Any "lender" promising a loan without an affordability check is likely a scammer or an illegal loan shark (Mashonisa).
However, there is a big difference between having No Income and having No Payslip. In this guide, we break down your options for both scenarios.
Scenario 1: Income, but "No Payslip"
If you are a freelancer, contractor, or run a side hustle, you earn money but don't get a traditional payslip. You CAN get a loan.
What lenders ask for instead:
- 3-6 Months Bank Statements: Lenders (like Capitec, FNB, or Wonga) look for regular deposits to verify your income.
- ITA34 (Tax Assessment): Proof from SARS that you declared income.
Note: If you are paid in cash and don't deposit it into a bank account, you effectively have "zero income" in the eyes of a lender. You must bank your cash to build a credit profile.
Scenario 2: Unemployed (Zero Income)
If you are unemployed, traditional personal loans are impossible. You cannot borrow money against a promise of "finding a job soon".
However, you might have assets. The only legal way to borrow without income is Secured Lending (Asset-Backed).
Pawn Shops (Cash Converters)
You give them an item of value (TV, Laptop, Jewellery). They lend you cash based on its value.
Loan Against Car Papers
Some lenders (like Pawn My Car) allow you to borrow against a fully paid-up vehicle.
DANGER: The Loan Sharks (Mashonisas)
When banks say no, many South Africans turn to informal lenders in their community. While some are helpful, many are ruthless.
1. Illegal Interest: They often charge 30% to 50% interest per month. The legal max for short-term loans is usually around 3-5% per month.
2. Card Retention: It is illegal for a lender to keep your SASSA card or Bank Card and PIN as security. Never hand these over.
3. Violence: Unregistered lenders operate outside the law and may use threats to collect.
What about SASSA Loans?
If you receive a SASSA grant (Child Support, Disability, or Old Age), you have a steady "income".
Shoprite / Checkers Money Market: Sometimes offer small loans or credit to grant recipients via reputable partners.
Only Trust Regulated Lenders: Only borrow from someone who checks your ID and affordability. If they say "Blacklisted Welcome, No Checks", it is a trap.