What exactly are SASSA Loans? Can they be reckless?

SASSA, or the South African Social Security Agency, is an institution that takes on the responsibility of administration regarding various social grants and those citizens of South Africa who qualify. SASSA Loans are given on a qualification bases, only to those in need of the grant for a variety of selected reasons.

Reporting to government, although not a government institution in itself, SASSA is basically tasked with ensuring that the right people are paid the right grants and at the right, convenient locations. Handling the logistics of it all, SASSA in essence manage the grants and ensure their management is up to scratch.

In South Africa, with the intense situation of poverty, inequality and unemployment, the triple threat concern is eased by the SASSA loans system. The Department of Social Development research not only shows that these grants reduce poverty, but also improve wealth distribution and generates economic growth within small communities. Going from 2.5 million recipients in 1993 to roughly 16.8 million on the grant in 2016, the department found that just over half of all South African households receive benefits from the government’s social assistance plan. Whether going through a tough time, or a victim of reckless lending, ensuring a loan or grant to support your household is key to financial security.

So what types of SASSA loans are available?

Child Support Grants

To qualify for a child support grant, you first meet certain criteria. For a Child Support Grant the primary caregiver must be a South African citizen or a permanent residence. Not only that, both the applicant and the child must also reside in South Africa. The applicant must be the primary caregiver of the child, while the child must have been born after December 1993. The current grant stands at R350.

Grants for Older People

Sitting at around R1500, the old age grant is available to those who are above 60 years of age, as well as qualify in line with the criteria. Anyone applying to an old age grant must be a South African citizen and resident, as well as not being the recipient of another grant. Because of the high unemployment rate in South Africa, many families rely on old age grants received by their grandparents to support their daily expenses. This grant has shown to improve food security among poor households.

Disability Grant

At the current moment, the disability grant sits at around R1500, available to people between the ages of 18 and 59 years of age. Applicants must show proof of disability by means of a medical confirmation/certificate/assessment report- this must have been done within three months before date of application. Those already in state care cannot qualify for this grant.

While these are the most common grants, there are other that are held for more niche needs:

• Foster Care Grant
• War Veteran’s Grant
• Care Dependency Grant
• Social Relief of Distress
• Grants-in-aid

If you do not qualify for a SASSA loan, but are still in need of a loan or assistance, or if you feel you have been taken advantage of regarding a loan, contact Reckless Lending today.