Can foreigners apply for loans?
Taurai asks: I am a foreigner with a work permit and a stable income. Can I still apply for a personal loan without a South African ID?
Maya replies: It seems this differs between banks.
Standard Bank replies: We do lend on this basis, however, the following conditions need to be met:
- The individual must hold a valid work permit.
- In terms of Exchange Control Regulations, they must repay all the liabilities before they leave South Africa.
- They must comply with Exchange Control regulations (a bank representative at a branch will be able to help with this process)
- They must have a contract with the employer
- They must have a Standard Bank transactional account (as this is where the money is transferred to) and have to apply for the loan at a branch
Nedbank replies: The South African Reserve Bank regulations stipulate that foreign nationals who have a valid work permit issued by the department of home affairs to work in South Africa may apply for loans. Banks have their own credit policies with regard to affordability and credit risk, which may have an impact on the application. Should clients need to return to their own country, they will need to repay the loans prior to leaving South Africa.
FNB replies: Loans would only be granted to qualifying customers who have a valid 13-digit South African ID number (permanent residents)
