loan south africa requirements

Millions of South Africans access needed funding in the form of loans. These loans take a variety of different forms.

The requirements you have to meet to borrow funds will depend on the type and source of loan you aim to secure.

What you need to get a loan from lamna

At lamna, we offer asset-based loans. In other words, you supply an asset you own as collateral. We offer a loan amount based on the value of the asset. Once the loan and agreed interest are repaid, the asset is returned to you.

We also offer asset-based loans against commercial property and bridge loans.

To get an asset-based loan from lamna, you’ll need:

  • your ID book and proof of residence
  • an asset of value (which is returned once the loan concludes)
  • in the case of a loan against a vehicle, original registration papers
  • a bank account.

You don’t need to be currently employed or to have a particular credit score, and there’s no time-consuming application process.

What you need to get a loan from a bank

Banks are traditional lenders. They’re highly regulated (at least in theory!) and offer loans for a range of purposes, from small short-term loans to home loans.

Most bank loans are unsecured loans. This means that you don’t have to offer collateral to back the loans – although if you default on a bank loan, your property and possessions may be at risk.

A down side of bank loans is that they can be difficult and time-consuming to get. If you don’t have stable employment and a healthy credit score, among other things, you may not qualify for a loan.

Personal bank loan

Personal bank loans are a popular means of paying for unexpected emergencies, consolidating debt and accessing needed funds for big ticket items.

Here’s what you typically need to get a personal loan from a bank:

  • proof of permanent employment or employment under a fixed-term contract
  • a regular income of at least R2 000 to R3 000 a month, deposited electronically into a transactional bank account
  • three payslips or three months of bank statements
  • an ID document and proof of residence
  • a credit score above 580.

In some cases, you’ll be able to access a bank loan if you have a bad credit score, but you’ll generally be offered a lower amount at a higher interest rate.

Business loan from a bank

You might seek a business loan from a bank to raise capital to fund business growth, acquire assets or finance business-related expenditure. Because business loans are typically higher value loans than personal loans, there are more qualifying criteria to satisfy.

To qualify for a business loan from a bank in South Africa, you’ll need to have:

  • an active business account that’s been operating for 15 months or more, with an annual turnover of at least R500 000
  • signed financial statements and current management accounts
  • cash flow statements, balance sheets and income statements
  • a business plan supporting the viability of operations
  • personal surety of the shareholders, directors and/or members.

Bank overdraft

A bank overdraft is a convenient hedge against unexpected expenses. It’s a revolving credit facility linked to your current account that enables instant access to funds, if and when you need them.

As for all bank loans, you have to prove you have the financial wherewithal to repay the money. This means the bank will conduct a personal risk and affordability assessment.

To qualify for a bank overdraft, you also have to:

  • earn a stable income of at least R2 000 per month
  • provide payslips or three months bank statements as proof of income
  • pass an affordability and credit scoring risk assessment
  • provide an ID document and proof of residence.

What you need to get a payday loan

Thousands of lenders in South Africa offer payday loans. These lenders range from relatively stable institutions to shady con artists – so it’s vital to be cautious. Find out more about the potential dangers of payday loans before going ahead.

Requirements for getting a payday loan will vary from one loan provider to another. In general though, you’ll need:

  • proof of employment
  • a stable monthly income
  • details of a bank account
  • your ID book.

Some payday loan providers may also conduct credit checks and require details of your monthly expenses.

How to get a loan from lamna

At lamna, we offer fast, discreet loans against the value of a wide range of assets, from luxury watches and jewellery to vehicles or artwork. To use an asset to secure a short-term loan, contact us on 086 111 2866 or simply complete and submit our online application form.

Complete our Online Application Form

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