Updated 11.10.2022

Loans for Blacklisted in South Africa

People usually go to banks to get loans for education, vehicle finance, house mortgage, and personal expenses. All you need to do is provide the documents and satisfy the conditions they require to get your loan application approved.

However, it’s not that easy for blacklisted individuals and those with low credit scores to get loans from banks. They have to look for alternative options offered by micro-lenders in South Africa.

What happens when you get blacklisted?

Your name becomes blacklisted by credit bureaus if you’re not paying your loans on time. You’ll have a harder time getting loans from lenders since your credit history tells them that you have a high chance of not paying your debts on the agreed terms.

It will take you around 3 to 10 years to get your name off the blacklist. The time-frame depends on how big your debts are and how financially capable you are to pay off all of them. It is a lengthy process that can affect your finances in the long run. This is why people are warned to handle their finances carefully to avoid getting into this situation.

Types of loans you can get in South Africa

Blacklisted individuals and those with low credit scores have an option to get loans from micro-lenders. These lenders have higher interest rates, though, and most often than not, offer unfavorable terms.

The following loan types are offered to those with low credit scores or have been blacklisted by credit bureaus.

Unsecured and secured options are often offered to blacklisted individuals looking for home loans or consolidation loans. A secured loan will give you better rates and more amicable repayment terms because you have a collateral to back your debt. However, failing to repay your loan on time will forfeit your ownership of the submitted asset.

Short-term loans, payday loans, and personal loans are best used in emergency situations only. These loan types should be repaid as soon as you can because they have high-interest rates and penalty fees that won’t be of any help to your credit standing.

Over-indebted people who can’t juggle all the debts they have often go for consolidation loans for blacklisted individuals. During the consolidation process, all your debts are combined into one big loan that’s more manageable to handle.

Where to get blacklisted loans?

Unfortunately, banks and known lending institutions like FNB, ABSA, Capitec, Sanlam, and SA Home Loans won’t probably provide special loans for blacklisted people because of the high credit risk these people pose. If they do offer a credit, they’ll most likely impose stricter rules and high credit rates on the loans they provide. Their primary condition for approving loan applicants is their financial profile and credit history.

Still, you can pursue loans offered by alternative micro-lenders. They have higher interest rates and their terms may be a bit harsh. It’s fair to say that this is the price blacklisted people pay to get a loan listed under their name.

Here are some of the most reliable lenders that offer loans for blacklisted people and those who have low credit scores.

The amount you can borrow will be smaller than what banks offer. Usually, you can loan an amount ranging from to R2 000 to R150 000.

Repayment terms will vary per lender but usually, they’ll range between 3 to 60 months. Expect their rates to be higher than what banks offer since you have a low credit score.

Alternative lenders like these who offer loans to blacklisted individuals often have a pre-qualifying form you have to fill out and submit. This form will help them gauge whether you’re capable of repaying the loan given your precarious financial position. The assessment of your application may be completed within 24 to 48 hours.

Not all individuals with low credit scores can apply for blacklisted loans. If you’re already under debt review or administration, then lenders won’t be able to provide you with a loan. You have to clear your name first from being blacklisted before you’re allowed to borrow money again.


Being blacklisted will make loan applications harder but certainly not impossible. You don’t have to limit yourself to banks in getting a loan. Besides, these big financial institutions often don’t cater to blacklisted individuals and those who have low credit scores.

Your best chance is to look for micro-lenders that offer personal loans to blacklisted people. Be warned, though, because these lenders charge much higher interest rates compared to banks. It would be best to repay your debts from these lenders as soon as you can to avoid getting yourself into deeper financial trouble.

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MoneyToday South Africa is a financial website aims to assist consumers with comprehensive information on personal finance, loans, insurance, investment opportunities, financial guides, tips and comparison of a large number of finance and insurance companies on the South African market.


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