Can you get a loan while under debt review?

The short answer is generally no. Once you are formally under debt review, South Africa’s National Credit Act restricts credit providers from entering into new credit agreements with you while the process is in force.

That restriction is there to stop your debt position from getting worse while you work through an agreed repayment plan. It does not mean that you are “blacklisted”, and it does not last forever. When the legal clearance requirements are met and your records are updated, you can apply for credit again, although approval is never guaranteed.

Why is new credit restricted during debt review?

Debt review is a formal process for consumers who are over-indebted. A registered debt counsellor assesses your finances and, where appropriate, works towards a restructured repayment plan with your credit providers.

While the process is active, taking on more debt can undermine that plan. Credit providers therefore check your credit record before granting credit, and the debt review indicator tells them that the process is still in force.

Applying to several lenders does not remove the restriction. It may also expose you to businesses that charge upfront fees, promise guaranteed approval or offer credit without proper affordability checks.

What should you do if you urgently need money?

An emergency can still happen while you are under debt review. The safest first step is to contact your registered debt counsellor as soon as possible and explain what has changed.

Ask them to help you review:

• essential expenses that cannot be postponed;
• whether your budget or repayment plan needs to be reassessed;
• whether an insurance policy or other benefit may cover the event;
• support options that do not create a prohibited new credit agreement; and
• any legal notice, disconnection warning or repossession threat you have received.

Do not stop an agreed payment or sign a new loan agreement without advice. A missed payment or unauthorised new agreement can put your debt review plan at risk.

Warning signs of a risky loan offer

Be cautious if a lender or agent:

• guarantees approval while you are under debt review;
• asks for an upfront “release”, “insurance” or “admin” fee before paying out;
• does not carry out a proper affordability assessment;
• asks for your banking PIN, password or one-time password;
• promises to remove the debt review indicator immediately; or
• pressures you to sign before you can check the agreement.

Use the National Credit Regulator’s register to confirm that a credit provider or debt counsellor is registered. If an offer sounds too easy, pause and check it before sharing personal or banking information.

When can you apply for credit again?

You may apply for credit again after your debt review has ended lawfully and the required records have been updated.

The exact route depends on your case and the stage of the process. Your registered debt counsellor must confirm when the legal clearance requirements are met and issue the required clearance certificate where applicable. The credit bureaus then update your records.

Being able to apply is not the same as being guaranteed approval. A credit provider must still complete an affordability assessment and may consider your income, expenses and payment history.

What does a clearance certificate change?

A clearance certificate confirms that the applicable debt review requirements have been met. Once the credit bureaus receive the required information, they remove the debt review indicator and information related to the debt review process.

Clearance does not erase your full credit history, create a new credit score overnight or guarantee a loan. Your normal payment profile may still be considered by future credit providers.

Can you remove debt review early?

There is no legitimate instant-removal shortcut. Whether you can withdraw from or end debt review depends on the legal status of your matter, including whether a court or tribunal order is already in place.

Do not pay a business that promises to remove the indicator without checking your case. Speak to your registered debt counsellor or a qualified legal adviser about the correct route and the documents required.

Frequently asked questions

Take the next safe step

If you are struggling with repayments or unsure what you can do while under debt review, speak to Debt Review Centre before signing a new agreement.

This article provides general information and is not legal advice. Your next step depends on your agreement, payment history and the legal stage of your debt review.