Frequently Asked Questions

How does an affordability/means test work?

When applying for a personal loan or a home loan we are required by the NCR to do an affordability/means test. What this means is that we need to determine if a person can actually afford to repay this loans. How we determine this is to calculate a person’s disposable income and then compare that to the monthly repayment amount on the loan. We only allow a repayment of up to a maximum of 75% of the person’s disposable income. This is in line with the guidelines published by the NCR. We want to assist as many people as possible, but compliance to legislation is non-negotiable, therefore if a person can’t afford to repay a loan, then we can’t issue them with a loan as this would amount to reckless lending.

What is disposable income?

The disposable income is calculated by using the person’s net salary then deducting the monthly expenses declared as well as any instalments that is currently being paid for other loans, car finance, etc. At times there is a tendency for people to under declare their expenses which allows for a higher disposable income, which in turn allows for a bigger loan amount, therefore the NCR has also published guidelines on the minimum value of certain expenses based on a person’s salary. What this means, if a person declares a certain amount for a certain expense, which is lower than the NCR recommended amount, the person needs to provide proof that he/she is indeed paying a lower amount, alternatively, the NCR recommended amount will be used.

Can I apply for a Pension Backed Home Loan to consolidate my debt?

No, your Pension Fund cannot be used to consolidate your debt.

Can I apply for a Pension Backed Home Loan to purchase a vehicle?

No, your Pension Fund cannot be used to purchase a vehicle.

Can I apply for a Pension Backed Home Loan for maintenance in and around the house?

Yes, your Pension Fund can be used as surety for a home loan, purchasing of land or for home improvements/maintenance as defined in the Pension Fund Act section 19(5)(a).

I have a current Pension Backed Home Loan. Can I move to Yes Loans due to the lower interest rate being offered by Yes Loans?

Yes. You will however need to go through an application process again as we need to do an affordability/means test to ensure you are still able to afford the repayment of the loan.

What happens when there is an entry on my credit profile/record that I don’t agree with?

You will have to contact the Credit Bureau to have the finding removed as all s on the credit report has an impact on whether the loan will be approved or not.

If I want to consolidate debt, does an affordability/means test need to be done again?

Yes. At the time when the previous debt was incurred, you might have been able to afford the repayments, but personal circumstances might have changed which could affect your ability to afford a loan, even for consolidation purposes.