Loans Under Debt Review: Can You Get One, and Should You?

"Loans for people under debt review" is one of the most searched debt phrases in South Africa. If you are in debt counselling and something unexpected happens, a quick loan can feel like the only way out. Here is what the law says and why most of these offers are a trap.

What the law says

Section 88 of the National Credit Act says that once you have applied for debt review, you may not take on new credit until the process ends, you receive a clearance certificate or the process is ended in another lawful way. A registered credit provider who knowingly gives you credit during this time risks the agreement being declared reckless or unenforceable.

In practice, this means banks and registered lenders will decline you. Your credit record shows that you are under debt review.

Why "loans under debt review" adverts are dangerous

• Many ask for an upfront "admin" or "insurance" fee, then disappear.
• Some ask for your bank card, PIN or SASSA card as "security", which is illegal.
• Unregistered lenders may charge interest far above the legal maximum.
• New debt can break your debt counselling plan and put your protection at risk.

Read our guide on debt help scams for more warning signs.

Safer options when money runs short

1. Speak to your debt counsellor. Your plan may be reviewed if your income or costs changed.
2. Ask your employer about a salary advance or hardship assistance.
3. Ask your municipality or service providers about payment arrangements.
4. Rework your budget with our budget calculator.
5. Contact community support organisations for food or emergency help.

When can I borrow again?

Once your debts under the plan are paid, your debt counsellor issues a clearance certificate and the credit bureaux remove the debt review flag. After that, lenders assess you normally. See debt review removal costs and timelines and your credit score after debt review.

Frequently asked questions