So, you’re a foreigner in South Africa, and you need some cash—maybe for a car, a business, or just to survive the brutal Johannesburg rent prices. But here’s the million-rand question: Can you actually get a loan here?
The short answer? Yes. The long answer? Well… buckle up.
Let me tell you a little story. When I first moved to Cape Town, I was convinced that getting a loan would be as easy as ordering a bunny chow. Spoiler: It wasn’t.
I walked into a bank, all confident, with my foreign passport and a smile that said, "I’m trustworthy, give me money." The bank manager’s face? Priceless. It was like I’d asked to borrow a pet lion.
Bank Manager: "Do you have permanent residency?"
Me: "Uh… no?"
Bank Manager: "A South African ID?"
Me: "Nope."
Bank Manager: "A local credit history?"
Me: "I have… a Netflix subscription?"
Yeah, that didn’t work.
South African banks love security. And when you’re a foreigner, they see you as a flight risk—literally. What’s stopping you from taking their money and hopping on the next plane to Mauritius?
Here’s what they worry about:
No credit history – If you’re new, you’re a ghost in the system.
Unstable visa status – If your visa expires tomorrow, so does your ability to repay.
No collateral – Unless you own property here, they’re nervous.
But don’t lose hope! There are ways.
You can’t borrow money from a bank that doesn’t trust you with a savings account. So step one: Open a local bank account. Standard Bank, FNB, Nedbank—pick your poison.
Pro Tip: Some banks offer "foreign national" accounts. They’re not always advertised, so ask.
No credit score? No loan. Simple.
How to fix this:
Get a store account – Woolworths, Edgars, even a phone contract helps.
Use a credit card – Even a secured one (where you deposit your own money as collateral).
Pay bills on time – Lights, water, rent. Some landlords report to credit bureaus.
Banks want stability. The longer you’ve been here, the better.
Long-term visa? Gold star.
Work permit? Even better.
Permanent residency? Jackpot.
If you’re on a tourist visa… good luck.
No bank will lend to someone with no income. Shocking, I know.
Salary slips – If you’re employed locally, great.
Bank statements – Consistent deposits = trust.
Tax number – SARS wants their cut, and banks like that.
If traditional banks laugh in your face (rude), try:
Micro-lenders (like Wonga, but beware of crazy interest).
Peer-to-peer lending (platforms like RainFin).
Specialist foreigner-friendly lenders (yes, they exist).
Desperation makes people do dumb things. I once met a guy who took a "loan" from a very informal lender. Let’s just say… he’s now fluent in debt collector threats.
Red flags:
No paperwork? Run.
Sky-high interest? Sprint.
"Just sign here, bro" vibes? Call the police.
Getting a loan in South Africa as a foreigner isn’t impossible, but it’s not a walk in the Kirstenbosch Gardens either. You’ll need patience, paperwork, and maybe a little begging.
My advice? Start small. Build credit. Stay legal. And for the love of all things financial, read the fine print.