Requirements to Apply for a Loan in South Africa: Documents & Criteria

Loan Qualification: Meet the Criteria and Gather Your Documents

Before gathering any documents, you need to meet these basic requirements that every lender checks:

• Age Requirements: You must be 18 years or older to legally enter into a credit agreement. Some lenders like MyMulah require you to be 21 or older, as they believe this shows more financial maturity and stability.
• Citizenship Status: You need to be a South African citizen or permanent resident with a valid South African ID number. Lenders use this to verify your identity and ensure you’re legally allowed to borrow money in the country.
• Employment History: Most lenders want to see that you’ve been permanently employed for at least 3 to 6 months with the same employer. This proves you have a stable income source and are likely to keep earning money to repay the loan. Casual workers and contractors often struggle to meet this requirement.
• Monthly Income: Your salary needs to be between R2,500 and R5,000 minimum, depending on which lender you approach. This isn’t just about having money coming in – lenders want to see that you earn enough to cover your living expenses plus the loan repayment comfortably.
• Banking Requirements: You must have an active South African bank account with one of the major banks like FNB, Standard Bank, Absa, Nedbank, or Capitec. The account needs to be in your name and show regular salary deposits. Lenders use this account to pay out your loan and collect repayments.

The Must-Have Documents Every Lender Wants

Once you meet the basic requirements, every South African lender asks for the same documents to prove you qualify, whether you’re applying for R2,000 or R300,000.

1. Your South African ID: Valid green barcoded ID book or Smart ID card. This proves your identity, age, and citizenship status. Lenders verify your details against the Department of Home Affairs database, so expired or damaged IDs cause instant delays.
2. Proof of Income: Your latest payslip or three consecutive months’ payslips if you earn commission or overtime. Self-employed applicants need bank statements showing regular income deposits. Pensioners can use pension statements or retirement annuity statements.
3. Bank Statements: Three months’ consecutive bank statements from your salary account. This shows your spending patterns, other loan commitments, and confirms your income deposits match your payslips.
4. Proof of Residence: Municipal bill, rates bill, or utility bill not older than three months. Some lenders accept bank statements as proof of residence if they show your current address.

What Lenders Check When You Apply

When you submit a loan application, lenders follow a systematic process to evaluate your creditworthiness. Every lender starts by checking your credit score and history with TransUnion, Experian, or XDS. They see your payment history, current debts, and any defaults or judgments. This tells them how you’ve handled credit in the past.

Next, some lenders call your employer to confirm you actually work there and verify your salary matches what you’ve claimed. Keep your HR department’s contact details handy and give them a heads up that a lender might call. 

Your bank statements reveal everything about your financial habits – spending patterns, gambling activity, other loan commitments, and whether your income is regular and stable. Lenders use this to see how you actually manage money day-to-day.

The Final Decision Process

Finally, lenders combine your credit score, verified income, and monthly expenses to calculate exactly how much you can afford to borrow. This National Credit Act requirement prevents them from lending you more than you can realistically repay, protecting both you and them from financial trouble.

Loan Requirements by Loan Type in South Africa

While the basic requirements covered above apply to most loans, different loan types have varying criteria and thresholds. Here’s how requirements differ across the most popular loan types in South Africa:

Requirement	Personal Loans	Payday/Short-term Loans	Car Finance	Home Loans	Business Loans
Minimum Age	18+ years	18-21+ years	18+ years	18+ years	18+ years
Employment Duration	3-6 months permanent	1-3 months (any employment)	3-6 months permanent	6-12 months permanent	6+ months (business operating)
Minimum Income	R3,500-R5,000	R2,500-R3,000	R5,000-R8,000	R15,000-R25,000	R10,000+ (business turnover)
Credit Score	600+ preferred	500+ (some no credit check)	650+ preferred	700+ required	650+ preferred
Documentation	Standard 4 docs	ID + payslip only	Standard + vehicle docs	Extensive (10+ docs)	Business financials required
Deposit Required	None	None	10-20% recommended	5-20% required	10-30% typical
Loan Amount	R3,000-R300,000	R500-R8,000	R50,000-R2,000,000	R500,000+	R10,000-R5,000,000
Processing Time	1-3 days	Same day/minutes	3-7 days	2-8 weeks	1-4 weeks
Key Differences	Standard requirements	Most flexible criteria	Vehicle secures loan	Strictest requirements	Business docs essential

Which Loan Type Suits You Best

If you need cash fast and have limited options, payday loans offer the easiest path to approval. Many lenders skip credit checks entirely and only care whether you’re currently employed. Home loans are much more demanding, requiring excellent credit, substantial income, and extensive documentation including property valuations.

Car finance falls somewhere between these extremes since your vehicle acts as security, making lenders more comfortable with moderate credit scores. Business owners face additional requirements with financial statements, business plans, and registration documents on top of personal criteria. Personal loans stick to the standard requirements covered above, making them straightforward for most borrowers.

Common Mistakes That Kill Applications

• Incomplete Payslips: Missing pages or unclear photocopies cause automatic rejections. Make sure all pages are readable and include your employer’s details.
• Mismatched Information: Your payslip address must match your proof of residence. Different surnames on documents without marriage certificates cause problems.
• Hidden Debts: Lenders see all your credit commitments. Don’t try to hide existing loans or credit cards – it backfires during credit checks.
• Incorrect Bank Details: Wrong account numbers delay funding even after approval. Double-check your banking details before submitting.

LoanHub24: Less Paperwork, More Results

Instead of preparing documents for multiple lenders and hoping for approval, LoanHub24 streamlines the entire process. Our loan matching service connects you with lenders who are likely to approve your specific situation.

Complete one detailed application with all your documents and information. We match you with NCR-registered lenders whose criteria align with your profile. This means higher approval chances and less time wasted on applications that won’t succeed.

Traditional Approach	LoanHub24 Approach
Apply to multiple lenders separately	One application, multiple offers
Guess which lenders might approve you	Matched with suitable lenders
Upload documents repeatedly	Upload once, share with matched lenders
Wait days for responses	Get multiple offers quickly

Our lenders specialize in different customer types – some focus on people with excellent credit, others help those with challenges. By matching you correctly from the start, you avoid wasted applications and get offers from lenders genuinely interested in your business.

The process works simply: fill out one detailed application including all required documents, get matched with 3-5 suitable lenders, compare their offers side-by-side, and choose the best option for your needs.