how to avoid loan sharks — and what to do instead.
🚫 1. Know What a Loan Shark Is
A loan shark is someone or a business that:
- Lends money without being registered with the National Credit Regulator (NCR).
- Charges very high interest rates (often more than 60% per year, which is illegal).
- Demands your ID, SASSA card, or bank card and PIN as “security.”
- May harass or threaten you if you don’t pay on time.
✅ Legitimate lenders are registered and must follow the National Credit Act (NCA).
⚠️ 2. Warning Signs You’re Dealing With a Loan Shark
Avoid anyone who:
- Asks for your SASSA card, bank card, or PIN.
- Doesn’t give you a written credit agreement or contract.
- Promises “no paperwork, instant cash.”
- Operates from the street, a tuck shop, or someone’s home.
- Threatens to keep your ID or personal documents.
👉 If there’s no written contract and the person isn’t registered, it’s illegal.
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💡 3. Safer Alternatives to Loan Sharks
If you really need money, these options are legal and safer:
🏦 A. Registered Credit Providers
- Use banks, retail stores, or microfinance companies that are registered with the NCR.
- You can check if a lender is registered here:
🔗 https://www.ncr.org.za
💳 B. SASSA & Government Support
- If you receive a SASSA grant, never give your card to anyone.
- If you’re in debt, contact SASSA or Debt Rescue SA for help — they can stop illegal deductions.
- 📞 SASSA Helpline: 0800 60 10 11
🏫 C. NSFAS or Bursaries (for Students)
- Apply for NSFAS instead of borrowing — it’s not a loan, it’s a bursary if you meet requirements.
💰 D. Stokvels or Community Savings Groups
- Join a stokvel (savings club) — it’s a community-based way to save and borrow safely with trusted members.
🧾 E. Debt Counselling
- If you already owe money and can’t cope, get help from a registered debt counsellor.
- Check for registered counsellors at www.ncr.org.za.
- They can negotiate with creditors and protect you legally from harassment.
🧍♀️ 4. What to Do If You’re Already Owing a Loan Shark
If you’re trapped by a loan shark:
- Do NOT give them your bank card or PIN.
- Report them to the National Credit Regulator (NCR):
- 📞 Call 0860 627 627
- 📧 complaints@ncr.org.za
- Website: www.ncr.org.za
- Report threats or harassment to your nearest police station — it’s illegal for anyone to threaten or confiscate your belongings.
- Contact an NGO like:
- Black Sash: www.blacksash.org.za
- Debt Rescue: www.debtrescue.co.za
🛡 5. Practical Tips to Stay Safe
✅ Budget your income — know your monthly essentials vs. luxuries.
✅ Save small amounts regularly (even R20/week adds up).
✅ Avoid borrowing for non-essential items.
✅ Educate family and friends about illegal lending.
✅ Use free financial literacy resources from:
⚖️ 6. Remember — It’s Not Your Fault
Loan sharks exploit people who are in difficult situations. You have legal rights and free support is available. Never feel ashamed to ask for help.
