The South African government offer social grants to citizens that lost their means of generating an income. Reasons might include suffering from a disability or even just being too old to be part of the workforce. However, if you are able to generate an income to support your household, could you use a social grant to obtain a finance agreement on a vehicle?
The answer
Unfortunately not. SASSA (The South African Social Security Agency) states that social grants beneficiaries are not allowed to take loans with social grant money.
“The Agency is issuing out this warning after numerous calls were received by the customer care unit, where beneficiaries are requesting proof of payment to apply for loans,” said Sassa spokesperson Senzeni Ngubeni.
“All social grant beneficiaries must be aware that they are not allowed to take loans and make payment with the social grant money. The social grant is not for luxury life but targeted very poor households to alleviate poverty. It enables beneficiaries to purchase basic needs.”
“Sassa was created as a tool to fight against poverty and malnutrition to the vulnerable groups in society. Sassa constitutional and legislative framework is derived from the Social Assistance Act. Beneficiaries are only allowed to have only one deduction of a funeral policy.”
“Regulation 26A of the Social Assistance Act, 2004, allows for deductions for funeral insurance or scheme to be made directly from a social grant, where the beneficiary of the social grant requests such deduction in writing from the Sassa. Such deduction will not exceed 10 per cent amount of the total grant,” reports The Citizen.
No deduction of loans, airtime or electricity from social grants payments is permitted, and that includes car finance.
Sources: sassa.gov.za, The Citizen.
