Updated 26.03.2023

Loans for Self Employed in South Africa

Whether you are financing your home renovations, emergency medical bills, trips, or even big purchases, a personal loan could be the solution you need to finance your expenses. A personal loan may be a powerful financial tool that offers you the credit required to pay for larger expenses that you might otherwise be incapable to afford upfront. A personal loan may also be useful in consolidating your pending debt and making it more manageable, by making a single monthly installment payment rather than different monthly installments.

Loans for Self Employed
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Whatever your reasons for a personal loan, before you take it, you need to ensure that it is the right option for your particular needs, you know how it works, and that you can afford it. 

What Types of Loans Are Available for Self-Employed People 

Here are the types of loans available for self-employed people in South Africa.

Vehicle Finance 

With vehicle finance loans, prospective self-employed applicants may get unsecured or secured loans when they need to finance their vehicles.

The following requirements are essential for a vehicle finance loan:

  • Ready deposit amount 
  • Be a South African citizen with a valid driver’s license 

Self-Employed Loans Fast Payout 

This loan type is obtained online. The credit giver usually only requires proof of income to confirm your loan repayment capability. There is no lengthy documentation to be filled out.

Home Loans 

You can take a home loan to buy your dream home in South Africa even if you do not hold a formal job with a regular income. The credit giver will conduct a thorough assessment of your financial capability in order to determine whether you qualify for this loan type.

Requirements for Home Loans 

  • A declaration of all your assets and finances 
  • Your most recent IT³⁴ from SARs 
  • A ready amount for deposit 
  • A letter, preferably from your auditor, confirming your average monthly income 

Personal Loan 

Self-employed people in South Africa can choose between unsecured and secured loans. Before this loan is granted to you, your lender will check your credit history to determine your creditworthiness.

Understanding How a Personal Loan for Self-Employed People Work 

When you borrow a personal loan in South Africa, you pay it back with an added interest, in monthly installments, over a set duration. The amount of interest to be paid and the set duration for loan repayment is determined by the amount of money you are borrowing and the time frame that best suits you.

Every personal loan application is reviewed on an individual basis and denied or approved accordingly. The loan amount and repayment terms are often based on a set criterion:

  • Your Credit Score: The financial institution evaluates your creditworthiness to check how much pending debt you have and how you have handled debts and repayments in the past.
  • Your income: How much credit you can take on is determined by how much money you earn. Your proof of income will reveal whether you have enough money to pay the loan and if you will still have enough left for your other expenses.
  • Requirements set out by the National Credit Act: Interest rates are usually personalized up to a maximum specific percentage. A good credit score will get you a better interest rate.

Agreeing to the Terms 

Before you take a personal loan, be sure to consider all your loan options, and whether your preferred loan type suits your financial capabilities and needs. In addition, note that the interest amount to be paid and the loan repayment duration will affect the overall cost of your loan. For instance, although a lower monthly installment may seem cheaper initially, paying a loan over longer durations may add up to cost you more eventually.

Before you agree to the loan terms, be sure to use personal loan calculators to determine how much you qualify for, approximate your monthly installments, and check how changes in interest rates, terms, and early or missed payments affect your loan.

What Do You Need to Apply for a Personal Loan?

South Africa’s lenders usually ask their self-employed borrowers to provide them with;

  • Valid South Africa ID 
  • Proof of residence no older than 3 months
  • 1 month’s payslip 
  • Most recent bank statements for the last 3 months 

Due to these documents’ requirements, it can be difficult and sometimes impossible for self-employed individuals in South Africa to qualify for loans. Lenders prefer employees since they are considered lower risk. They argue that it is easier for an employed individual with a regular income to repay a loan than it is for a self-employed individual without a steady job.

As a self-employed person, you may be eligible for either an unsecured or secured loan. The major distinction between the two is that an unsecured loan does not need any security, however, the interest rate is comparatively higher. Alternatively, a secured loan requires collateral as security.

Characteristics of Self-Employed Loans

Self-employed loans have the following characteristics:

  1. The loans have flexible payment terms, from 6 up to 72 months; Your loan’s monthly repayment installment and schedule may be set according to your budget.
  2. You may borrow an amount that ranges between R2000 to R300 000: Lenders typically consider your income history when evaluating how much you can afford.
  3. Your interest rate is customized according to your risk profile: If you have a good credit score, you will achieve a lower interest rate.
  4. The application process is straightforward: Since most of these applications are done online, your loan may be approved without you necessarily visiting your lender’s office.

Where Can You Get a Loan for the Self-Employed?

As a self-employed person, you can find a loan product that works for you from the lenders below:

Standard Bank 

To qualify for a personal loan for a self-employed person, you need to have attained 18 years of age or more. The application process is fairly simple, you simply sign in to the Standard Bank internet banking or App. Choose the type of loan suitable for your needs and follow the steps provided to apply for it. If your loan is approved, the money will be credited to your designated account.

If you are a non-Standard Bank customer, you may begin your application process online, check your loan limit, and then submit your loan application for review. Once your loan has been approved, Standard Bank will contact you. You can also visit the nearest branch with the required documents.

Standard Bank also provides home loans and vehicle finance. The business owner is required to provide financial statements and statements of liabilities and assets 


Capitec is a financial institution that offers personal loans, car loans, as well as other forms of financial services. Self-employed people who receive their salaries directly from their businesses may borrow up to R500 000. However, informally self-employed individuals, such as sole traders and freelancers, may not be eligible for Capitec loans.

Capitec has optimized different application systems to meet every customer’s preference. You can choose whichever method suits you, as they are all efficient and swift. You can apply by visiting their website, downloading the Capitec App, visiting the closest Capitec branch, or putting a call through to Capitec loan operatives.


When you earn a regular monthly income of at least R1500 in South Africa, you may qualify for a personal loan at Absa. The maximum loan amount at Absa is R350 000, whereas the minimum loan amount is R250. Those self-employed individuals with smaller personal loans repay their loans over a period of between 2 to 6 months. They have customized interest rates for self-employed individuals, with the maximum going up to 17.5%.

There are three ways to apply for an Absa loan: Apply online, visit any of their branches in South Africa, or you can call their call center to put through your loan request. Once your loan application has been approved, your bank account will be credited with the funds.


As a self-employed individual looking to get a loan in South Africa, you may also consider Wonga. Wonga’s prospective applicants can 

As a self-employed individual looking to get a loan in South Africa, you may also consider Wonga. Wonga’s prospective applicants may borrow short-term loans of up to R4 000 for new customers, and up to R8 000 for existing customers.


With FNB, you can borrow up to R300 000 if you qualify.

Self-employed loans may be used to cover a broad range of financial needs including personal expenses and business costs. Since some of them offer fast payouts, they can also help in emergency situations.


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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.


Comments limited to 400 characters.

  • Anna says:

    I need a personal loan. Im self employed. Have my own business. Need it urgent by next week tuseday. Can you call me on monday by 8:30?

  • Noķholo mokhele says:

    I am self employed and need a loan for schoolfees as soon as possible

  • Johan Roets says:

    Hallo I need a loan for my business I’m self employed. I buy and sell cars need a cash flow to buy certain cars. Can’t buy because I don’t have enough money, so I land up loosing nice deals which could have brought in some good profit to build up my business.