Who pays you matters
Members of the South African Police Service are employed by a national department; teachers at public schools by the provincial department of education; nurses at public hospitals and clinics by the provincial department of health. All three are paid through PERSAL, the government payroll, so a lender sees the same kind of payslip and the same deduction rules.
Not everyone who works in a school, a hospital or a police station is on PERSAL. A teacher in a post paid by the school governing body is paid by the school, and an agency nurse by the agency. Lenders then treat the income like any private salary, and the PERSAL rules below do not apply.
What lenders look at
A permanent appointment and a salary paid into your own bank account count in your favour. A lender registered with the National Credit Regulator must still assess whether you can afford the instalments: it looks at your income, your living expenses and every deduction and debt repayment you already have. Lending to someone who clearly cannot afford it is reckless credit under the National Credit Act.
Public servants often carry several payroll deductions already — insurance, union fees, funeral cover, earlier loans — and that is the most common reason an application from a police officer, teacher or nurse is declined or offered a smaller amount. Check your latest payslip before you apply and know the total that already comes off.
Payroll deduction or debit order
Some lenders hold a PERSAL deduction code and take the instalment from your salary before it is paid out; others use a debit order on your bank account. With a deduction, discretionary deductions together may not exceed 40% of your basic salary, and loans and other non-insurance deductions at most 25%. Our guide on PERSAL payroll deduction loans explains the rules and who may hold a code.
Either way, the legal caps on interest and fees are the same. A deduction makes repayment automatic, but it does not make the loan cheaper; compare the total you repay.
Your pension is not security
Police officers, teachers and nurses in the public service belong to the Government Employees Pension Fund. The law that governs it says your benefits may not be ceded, pledged or used as security for a loan. Anyone who offers a loan against your GEPF pension, or asks for your pension details to secure one, is not following the law.
Warnings for public servants
Adverts that promise loans for SAPS members, teachers or nurses regardless of credit record are a favourite of scammers. A registered lender never asks for a fee before paying out the loan, and never asks for your banking PIN or a one-time PIN. Check the lender on the National Credit Regulator's register before you share your PERSAL number or a payslip.
If a creditor obtains a court judgment, it can ask for an order that takes money straight from your salary; all such orders together may take at most 25% of your basic salary. Our guide on garnishee orders explains your rights.
Comparing loans
Our page on loans for government employees lists registered providers that lend to public servants, with the amounts and terms they publish. RandScout is not a lender: you apply on the provider's own site, and the provider decides.