Can You Get a SASSA Grant If You Have Debt?

Most people have debt these days, whether it’s a mortgage, a car loan, or even some loan for personal use.

As someone in South Africa with any form of debt, you might be wondering if you can get a SASSA grant if you have debt, which is a valid question. Here’s what you need to know.

Does the SASSA assess your debt?

When you apply for the SASSA Grant, they will do a multitude of checks.

However, the SASSA doesn’t check for:

• Your credit score
• The amount of debt you owe
• Access the credit bureau records

Instead, the SASSA will focus specifically on your employment status, income, and assets. They will also focus on the legal status and residency. Even if you are in a lot of debt, you are still eligible for the SASSA Grant.

Debt vs. income confusion

A lot of SASSA Grant applicants confuse debt and income. However, the government is very strict when it comes to the meaning of each one.

Income

Income is seen as the money that you receive. Normally, this comes from a salary, but it can also come from UIF payments, business income, or financial support. If your income exceeds the SASSA Grant’s threshold, you will be disqualified from getting the grant.

The income thresholds vary by grant type:

• SRD Grant: Less than R625 per month
• Older Persons Grant: R8,990 per month (single), R17,980 per month (married)
• Disability Grant: R8,990 per month (single), R17,980 per month (married)
• Child Support Grant: R5,600 per month (single), R11,200 per month (married)

Debt

Debt involves all the money that you owe. That will be anything from store accounts to credit cards and loans. Unlike income, debt won’t disqualify you from getting the grant, and there is no threshold. Sometimes, the fact that you’re in need of financial help due to being in debt might actually help.

What if you have microloans or store cards?

A lot of people apply for microloans or even store cards. These are normal and used by millions. In regard to the SASSA Grant qualification, it doesn’t matter if you have vehicle financing, credit card debt, store cards, microloans, or personal loans. You won’t be rejected, regardless of the loan type that you currently have.

Does having a bad credit score disqualify you from the SASSA grants?

No. You can still qualify even with bad credit:

• The SASSA does not use any credit bureaus, nor does it check for your current debt situation.
• You can be blacklisted or have a very low credit score and still qualify for the SASSA grant.
• The same thing is valid if you have judgments or defaults.

Are SASSA grants protected from creditors?

Yes, SASSA grants have legal protections under the Social Assistance Act. According to the law, only one type of deduction is allowed from most SASSA grants: a funeral policy premium of up to 10% of your grant amount.

This deduction requires your written consent submitted directly to SASSA, and must be for a policy from an insurer registered under the Long-term Insurance Act.

Important: Child-related grants (Child Support Grant, Care Dependency Grant, Foster Child Grant) and Temporary Disability Grants are completely protected from all deductions. No funeral policy deductions are allowed from these grants.

Banks or any other creditors can see you have the SASSA grant, but they can’t automatically deduct payments from it without your consent. That’s because the grant itself is meant to cover the basic needs of an individual.

Problems with unauthorized deductions

Although the SASSA grant system has legal protections, unauthorized deductions have been a problem. Some issues that have occurred include:

• Lenders making deductions from grant-related bank accounts without proper authorization.
• Deductions for services like airtime, electricity, and loan repayments that beneficiaries didn’t consent to.
• Multiple funeral policy deductions beyond what’s legally allowed.

These practices are illegal. If you experience unauthorized deductions, you should report them immediately to your nearest SASSA office or send an SMS to 34548 with your ID number and the financial service provider’s name.

You have the option to voluntarily use your grant to pay your debt. Or you can use it to buy food or electricity on credit. But you can’t be legally forced to use the grant as the means to pay back your debt.

Should you use a separate bank account for grant payments?

Yes, ideally you want to have a separate bank account for grant payments. That can help protect you from any issues. It will also ensure that you can access those funds at any time, while also receiving adequate protection from the bank.

Will the SASSA grant money stop arriving due to debt?

No, the SASSA grant will not be stopped due to debt. That’s valid even if you are deeply in debt, the creditors are chasing you, and there are ongoing court judgments in your name.

The grant will stop only if:

• Your income is now above the threshold.
• You found work, and your salary passes the threshold.
• You don’t comply with the reviews.
• You shared false information.
• The beneficiary has passed away.

Conclusion

The SASSA grant is meant to assist people that lost employment or that are in dire need of financial assistance. Thankfully, if you have debt of any kind, it doesn’t automatically disqualify you. Instead, you can still apply for the grant, and most likely you will be accepted. Provided that you meet all the other requirements, of course.

You should perform your due diligence and ensure you comply with the SASSA grant requirements before applying. However, don’t worry; if you have any outstanding debt, that won’t matter. The SASSA doesn’t check with any creditors or credit bureaus; instead, they are interested in your current income and other details.

To confirm whether your application was approved or if a payment is pending, you can use the SRD Status Check on our homepage.