Taking a loan is never easy, the tediousness of the application process is not the first difficult thing about it. The initial step is determining the type of loan that is fit for you, after which you need to be aware of how to apply for it.

how to apply for a loan

If you are among the clueless folks who do not know how to apply for a loan in South Africa, then know that you are not alone in this. There are many out there who are dealing with the same struggle.

This is why, I have devoted an entire article to the process of applying for a loan. So, sit back as I explain to you all the types of loans and how to apply for them as a citizen of South Africa.

Types of Loans in South Africa

The first thing that comes during the process of taking a loan is determining the type of loan you need. In South Africa, there are multiple types of loans available for the citizens of the country. The list is shared below:

  • Student Loan
  • Revolving Loan
  • Term Loan
  • Loan without a Payslip
  • Personal Loan
  • Peer-to-Peer Loan

These are some of the most common loans that people take in South Africa, there are many others as well. Each of these loans is different and has its own requirements and criterion that the person applying for the loan needs to meet. In case they fail to meet the requirements, the applicant will not be granted the loan.

Lenders of Loan

When it comes to taking loans, there are many options available for the people of South Africa. However, not all of them can be trusted.

Moreover, the interest rates and the strict repayment rules also narrow down the long list of lenders. Following are some of the best banks and lenders that grant loans to the citizens of South Africa.

  • RCS Loan
  • FNB Loan
  • NiraFinance
  • Binixo
  • Standard Bank
  • Peer-To-Peer Platforms

Requirements For Loan

how to apply for a loan

For a student loan, you need to submit proof of your education in the form of an admission form or an identity card from the institute. For a revolving loan, no extra documentation is required except the identity card issued by the government of South Africa. However, for a personal loan, the applicant needs to submit their bank statement, identity card as well as a proof of income.

For a loan without a payslip, a bank statement, proof of identity, proof of residence, and proof of assets are needed. Lastly, for a term loan, the applicant needs to submit their proof of citizenship in South Africa i.e., an identity card. They also need to add proof of income, employment details, asset details, and credit history along with their application.

For a peer-to-peer loan, the requirements are not very harsh. There are different platforms for this, and for some, you only need your basic details such as your identity card and proof of income.

One of the two requirements that are common for all of these loans is that the person must be over the age of 18. The second common requisite is that the individual applying for the loan must be a citizen of South Africa. These loans are not granted to foreigners.

How to Apply For Different Loans?

FNB Loan

Applying for a loan from FNB or First National Bank is a very simple process. The applicant can visit the website or download the application of the FNB on their phones. From the website, they need to select the type of loan they wish to take.

Once the type of loan is selected, click on the ‘Apply now’ button to get access to the application form. Fill out the form accurately, and make sure to add all the personal details that the bank asks for. This includes adding the amount of loan you require and attaching all the documents with the online application.

Once you submit the form, your application will go under assessment. If it gets approved by the bank, then you will receive an offer from the bank that will list the repayment terms along with the interest rates.

You need to go through this part in detail, as failure to repay the amount on time will result in bad credit history and you will not be allowed to take a loan again. After you are satisfied with the terms, sign the application. The bank will provide you access to your loan in a few hours.

The second way of getting a loan through FNB is by visiting any branch of the bank. You need to fill out the form they will provide at the branch and attach all the required documentation with it. The bank will review your application and the same steps as the online application will be done.

For a personal loan, FNB offers a maximum of R360,000. However, if you do not have a job, then the bank will offer you a maximum of R125,000 with a repayment duration of 12 to 60 months, depending upon the amount of the loan.

RCS Loan

RCS is an abbreviation for Retail Credit Solution. It is a credit-providing company that offers the citizens of South Africa different types of loans. The best loan they offer is for those who do not have a job.

In order to apply for a loan in RCS, the applicant will need all of their documentation first. If you are unsure of which documents you need for RCS, you can visit any branch or call the bank and their customer representative will guide you.

For online applications, you need to visit their website. Find out the type of loan that you are looking for, e.g. personal loan or loan without a job. After selecting the loan, you need to click on the ‘Apply now’ button.

An application form will appear on the screen. You need to fill out this form and add all the details that the bank asks for accurately. Make sure that there is no error in your application form, as it will result in the request getting rejected by the bank.

Once the form is complete, and you have added all the required documents with it, you need to submit it. The company will review the application, and within a few days, you will be notified of its status. When the application gets accepted, the amount is transferred to the bank account of the applicant within 24 hours, which is the best benefit of getting a loan through RCS.

In case you do not wish to do this process online, you can also apply for a loan through any branch of the bank. Take all of your required documents such as payslip and identity card with you to the bank, and fill out the application form there. Attach the documents with it, and submit the form.

RCS offers a loan range of R2000 to R250,000 to the citizens of South Africa. The best part is that their repayment duration is also quite flexible, the person can choose from 12 months to 60 months.


The third option for a loan is NiraFinance. This is the perfect way to get a loan for those who need it immediately in case of an emergency. The process for NiraFinance is solely online.

You need to visit their website and fill out the application form present there. The application does not ask for any special documents or credit history. You only need to add your basic information in the form, along with the FCIA documents and your payslip.

Once the application form has been completed and submitted, it goes under process. The best part of NiraFinance is that it accepts loan applications as soon as 3 to 5 minutes and as late as a few hours. The quick acceptance process combined with the fact that money gets transferred to the account immediately after the application is accepted makes it perfect for emergencies.


Binixo is perfect for those who need smaller amounts of loans. They offer a minimum of R300 of loans to the citizens of South Africa. Their maximum limit is R9000.

The application process for Binixo is quite simple. All you need to do is fill out their forms online. The application form does not ask for any credit history or proof of income, you only need to add a few basic details in the form.

Once the application has been submitted, and processed, the loan is granted either the same day or on the next day. The quick loan transfer is one thing that makes Binixo ideal for those who need a small amount of loan on short notice.

Standard Bank

Standard Bank is one of the renowned banks in South Africa offering loans to the citizens of the country. Their application process is quite extensive, but the amount of loan they offer is also wide as they offer a maximum of R300,000 of loan to individuals. The repayment duration is 12 to 72 months.

The person needs to submit their proof of identity, along with proof of residence, a 1-month payslip, and a bank statement. The bank statement must not be older than 3 months. Another great benefit is that the interest rate can also be personalized.

The application can be done online on the website of Standard Bank or in any branch of the bank throughout the country. The online application process is the same as FNB. You need to fill out the application form with all the details and upload the documentation they ask for.

Once the application is submitted, it goes under assessment. If the bank finds no issue with the application and every detail checks out, they will send an offer statement to the applicant stating the terms of repayment. This includes the duration and the interest rate.

If you do not have any issue with the terms, then you need to sign the form and the bank will accept your loan request. They will grant you access to the loan in a couple of days.

For physical application, you will need to visit any branch of Standard Bank and ask them for an application form for the type of loan you require. After filling out the form and adding all your details, you will attach the required documents with it, and submit it on the counter.

Once the assessment of your application is done, the bank will send you an offer statement. Accepting the terms of the offer will result in the loan getting approved.


The last type of loan that people of South Africa can get is a peer-to-peer loan. As the name indicates, this loan is not taken through banks or credit companies, but from other individuals residing in the country.

There are different platforms that offer this type of loan such as FundMe, RainFin, PeerFin, GumTree, Lendico etc. You need to pick one of the many platforms for yourself. For picking the best choice, you can go through the terms and conditions of each platform and compare them to each other to find out which one suits your needs the best.

Then make an online account on the platform you picked. Lenders present on these platforms offer money to those who ask for a loan. The best part is that the application and account-making process is simple, the platforms do not ask for a long list of documents or any proof of income.

These platforms are ideal for those who need immediate loans without any hassle. They can get up to R100,000 of money at a time. However, in case a person needs a larger loan, the lender asks for a bank statement.

What credit score is needed for a loan in South Africa?

Credit scores range between 0 to 999. A person applying for a loan in South Africa needs a minimum of 610 credit score for the bank to consider their request for a loan.

Which bank gives instant loans in South Africa?

NiraFinance is known for providing applicants with instant loans. Their application process is quite simple and the borrower receives the amount of the loan in a few hours.

No matter which part of the world you live in, taking a loan is never easy. However, if you are a citizen of South Africa, then there are many means for you to get a loan.

The article above states information about all the platforms and their application processes. So, read it to find out how to apply for a loan that you require from different banks.