Budgeting

When you budget, follow the “35:25:35″ principle — allocate 35% of monthly income to household expenditure, 25% to financial services and 35% to debt repayments. The extra 5% should be put away as an emergency saving.

Can foreigners apply for loans?

“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?” writes Taurai.

Maya replies: It seems this differs between banks. Standard Bank may be a good option while FNB is a flat no.

 Standard Bank replies: We do lend on this basis, however, the following conditions need to be met:

  1. The individual must hold a valid work permit.
  2. In terms of Exchange Control Regulations, they must repay all the liabilities before they leave South Africa.
  3. They must comply with Exchange Control regulations ( a bank representative at a branch will be able to help them through this process)
  4. They must have a contract with the employer
  5. 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: South African Reserve Bank (SARB) 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: We would only grant loans to qualifying customers who have a valid 13 digit SA ID number (Permanent Residents)”

 

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aMaya on Money is a collection of articles by financial journalist Maya Fisher-French; contributions from other authors and questions posted by readers. We encourage readers to post questions and add comments to create an interactive forum where people can gain information on how to better manage their money. .

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