In Pretoria, a peer-to-peer loan between relatives or friends can be made freely if it is written down, paid by bank transfer and interest-free, whereas a loan charging commercial interest normally requires the lender to register with the National Credit Regulator.
Tshwane, a city of ministries and institutions
As the seat of the executive at the Union Buildings, Pretoria hosts ministries, the South African Reserve Bank and the tax authority. Many residents are civil servants with steady salaries, a favourite target for lenders, legal or not, who rely on that regular pay.
Civil servants and loans between ministry colleagues
In the ministries of Arcadia and Sunnyside, colleagues often advance each other money before payday. Our page on the peer-to-peer loan for civil servants explains how to match the repayment schedule to the public sector pay calendar and avoid tension at the office.
Salary garnishment and abused emoluments orders
Emoluments attachment orders, compulsory deductions taken straight from a salary, have been abused against public employees. Since the Constitutional Court ruling of 2016, a court must oversee these orders, so challenge any deduction from your pay that you never authorised.
Diplomats and embassy expatriates
Pretoria is home to a large number of embassies. An expatriate employee who lends to a local colleague, or borrows from a compatriot, must take exchange controls and any diplomatic immunity into account. See also our page on the peer-to-peer loan for expatriates.
Students at the University of Pretoria, UNISA and TUT
Students at the University of Pretoria in Hatfield, the Tshwane University of Technology and UNISA, the distance-learning university, often borrow from family to pay registration fees. A written agreement providing for repayment after graduation protects family relationships from later disputes.
Mashonisas in Mamelodi, Soshanguve and Atteridgeville
In these Tshwane townships, informal moneylenders advance small sums and sometimes demand the borrower's bank card or SASSA card as security. Holding those cards is illegal. Victims can lay a charge with SAPS and report the lender to the National Credit Regulator.
Office savings clubs and civil servant stokvels
Staff in the same department often run a monthly stokvel collected on payday. Put the rules in writing, especially for a transfer to another province, so that the departing member either receives a fair share or pays what is still owed to the group.
Drafting the agreement and choosing the right court
The acknowledgement of debt states ID numbers, the amount in rand, instalments and an address for service. For a small sum, a Tshwane Small Claims Court can hear the case without a lawyer. Our sheet on the private loan agreement lists the key clauses.
Free advice in the capital
The University of Pretoria law clinic, Legal Aid South Africa offices and the Gauteng consumer protection office all receive members of the public. For a dispute with a registered lender, the Credit Ombud can step in free of charge before any court action.
Fake lenders claiming to represent official bodies
Fraudsters pose as officials of the Reserve Bank or SARS and demand a release fee before paying out a loan. No public institution grants personal loans or asks for such payments. Our report on the loan scam lender walks through this exact scenario.
Lender interest and tax returns
A lender who earns interest declares it to SARS, whose head office is in Pretoria. The annual interest exemption applies to the total of local interest received. A civil servant lending to several colleagues should keep a precise record of every amount repaid.
Avoiding disputes when a borrower is transferred
A civil servant posted to Limpopo or Cape Town may leave Pretoria before repaying in full. Include an early repayment clause or set up an automatic monthly transfer, and make sure any new address for service is confirmed in writing.
Steps for a private loan in the Tshwane area
- Check the borrower's ability to repay using their payslip and the deductions already taken from their salary.
- Draft an acknowledgement of debt that includes a clause covering a transfer or the end of the borrower's employment contract.
- Have copies of ID certified by a commissioner of oaths, for example at the Brooklyn or Sunnyside police station.
- Pay out the loan by EFT and set up a stop order for the repayments.
- Refuse any salary deduction that has not been authorised in writing or ordered by a court.
- Keep the agreement, statements and messages, then contact the University of Pretoria law clinic if a dispute arises.
Costs linked to a private loan in Pretoria
| Cost item | Amount (indicative) | Note |
|---|---|---|
| Rate between colleagues or relatives | 0% preferably | A commercial rate requires an NCR-registered lender |
| Initiation fee charged by a registered lender | R1 050 at most (indicative) | Regulatory cap for unsecured credit |
| Monthly service fee | R60 at most (indicative) | Only for a registered lender |
| Lender's interest exemption | R23 800, R34 500 from age 65 (indicative) | Annual amounts published by SARS |
| Release fee demanded by a fake official | Total loss | No public institution lends to individuals |
Documents to gather in Pretoria
- Smart ID card, or diplomatic passport and permit, as certified copies
- Payslip from the public service or the employer
- Proof of address in Tshwane
- Acknowledgement of debt signed by both parties
- Stop order form
- Proof of the initial EFT payment
Common missteps in the capital
- Signing a salary deduction authorisation without realising that it allows lasting deductions which are hard to stop.
- Paying a release fee to someone who claims to be an official of the Reserve Bank or SARS.
- Lending to a colleague who is about to be transferred without a clause or an updated address for service.
- Letting an informal lender in Mamelodi keep your bank card until the next payday.
- Borrowing from a diplomat, or lending to one, without checking exchange rules and any possible immunity.
Tshwane residents ask about private lending
Can my public sector employer deduct a loan repayment from my salary?
Only with your valid written authorisation or a court order. Since 2016, courts have scrutinised salary garnishment orders more strictly. Challenge the deduction with the payroll office and consult Legal Aid South Africa if you have any doubt.
Does the Reserve Bank grant loans to individuals?
No. The South African Reserve Bank conducts monetary policy and supervises banks; it never lends to private individuals. Anyone who uses its name to release a loan in exchange for a fee is a fraudster who should be reported to SAPS.
Can a diplomat be sued over an unpaid loan?
Some diplomats enjoy immunity from jurisdiction, which makes recovery very difficult. Before lending, ask the person about their status and keep the amount modest. A Pretoria lawyer familiar with diplomatic law can give you proper advice.
Where can I find a commissioner of oaths in Pretoria?
Most SAPS police stations offer this service, usually free of charge, as do many attorneys and some bank branches. Bring the original identity document and the unsigned copies, which you will sign in front of the commissioner.