SASSA Grant Under Pressure: How Loan Sharks, Debt and Unauthorised Deductions Leave Beneficiaries With Nothing

By: Dizindaba Staff Reporter & ChatGPT

SASSA is warning beneficiaries against frequently changing their payment methods. But behind some of these changes is a deeper problem: beneficiaries caught in cycles of debt, informal lending, card surrender, unauthorised deductions and financial exploitation.

SASSA’s latest warning to social grant beneficiaries is not about forcing them to change their bank cards. Instead, the South African Social Security Agency is urging beneficiaries to avoid unnecessary and frequent changes to their payment methods and bank account details, warning that repeated changes can result in payment delays or rejected payments. (South African Government)

But behind the frequent changes reported by some beneficiaries lies another, more troubling story: debt.

Dizindaba’s previous investigation into the financial challenges facing social grant beneficiaries found that some beneficiaries turn to informal lenders and loan sharks to survive between grant payments. In some cases, beneficiaries surrender their bank cards and identification documents to lenders as security for loans.

Once the informal lender has control of the card, the beneficiary may have little control over what happens to the money when the grant is paid.

A loan can consume the entire grant

Dizindaba’s previous investigation found allegations that some informal lenders withdraw more money than the amount the beneficiary believes is owed.

By the time the beneficiary reaches the ATM, there may be little or no money left.

The investigation also found that some beneficiaries take out multiple loans from different lenders, creating a cycle in which the monthly grant is effectively committed before it even arrives.

This can leave an elderly or vulnerable person borrowing again simply to buy food, pay transport costs or meet basic household needs.

For some beneficiaries, changing their bank card or payment details becomes an attempt to escape this cycle.

But SASSA is now warning that repeatedly changing banking details can itself create problems.

Your SASSA card is not supposed to be handed to someone else

SASSA’s own beneficiary guidance says beneficiaries are responsible for safeguarding their grant cards and not divulging their PINs. (SASSA Services)

This is particularly important where a lender demands the card, PIN or ID as security for a loan.

A beneficiary should never assume that handing over the card means the lender is only entitled to the agreed repayment.

Once somebody else controls the card and PIN, the beneficiary can be exposed to withdrawals that they may not understand or be able to stop immediately.

The caregiver who controls the money

Dizindaba’s investigation also uncovered another vulnerability involving elderly beneficiaries.

In some cases, a caregiver or person assisting an elderly beneficiary to collect the grant allegedly takes out a loan without the elderly person fully understanding what has happened.

The beneficiary may then ask where their grant has gone and be told that SASSA has “short-paid” them.

In other cases, vulnerable beneficiaries may be asked to sign documents without understanding that they are signing a loan agreement.

This is why families need to pay attention to more than whether the grant has arrived.

They need to know where the money is going.

An elderly person who depends on another person to access their grant should, where possible, have a trusted family member or independent person help monitor their bank statements and transactions.

The funeral policy deduction problem

Unauthorised deductions are another issue that continues to concern beneficiaries.

SASSA stated in August 2025 that it had received numerous complaints from beneficiaries about deductions by insurance companies for policies they said they never signed up for. SASSA emphasised that it has no authority to deduct money from a grant without the beneficiary’s consent. (SAnews)

The issue has also reached Parliament, which in 2026 asked questions about funeral-policy deductions, including what systems SASSA has in place to protect beneficiaries against mis-selling and deductions made without permission. (Parliament of South Africa)

There are circumstances in which a funeral-policy deduction is legally permitted, but there are rules around consent and the type of grant. SASSA has said that beneficiaries who dispute a funeral-policy deduction can report it to SASSA; it has also provided an SMS process for disputing certain deductions. (SAnews)

The important message is simple: if you did not agree to a deduction, don’t simply accept it. Query it.

When SASSA stops the grant

There is another side to the story that beneficiaries need to understand.

A social grant is means-tested. This means SASSA assesses a person’s income and assets to determine whether they continue to qualify.

SASSA is conducting grant reviews to verify that beneficiaries remain eligible and to detect fraud, duplicate claims and changes in circumstances. (South African Government)

For example, the Department of Social Development’s 2026/27 information confirms that the Older Persons and Disability grants are subject to income and asset thresholds. (Department of Social Development)

Therefore, if a beneficiary starts earning income from employment or another source, the grant does not automatically continue regardless of the new circumstances. The beneficiary has a responsibility to inform SASSA of relevant changes, and SASSA can review eligibility.

This does not mean that every person who earns money from a small business, casual work or a self-employment initiative will automatically lose their grant. The effect depends on the particular grant, the person’s circumstances and the applicable means test.

That distinction is important because misinformation can cause beneficiaries to hide legitimate income or panic when they receive a review notification.

Dizindaba’s message to beneficiaries: Know where your money is going

Your SASSA grant is intended to support you.

It should not become a source of income for loan sharks, dishonest intermediaries, fraudulent deductions or people who take advantage of beneficiaries who do not understand financial documents.

Before taking a loan, ask:

• Who am I borrowing from?
• Is the lender legally registered?
• How much will I repay in total?
• What am I signing?
• Am I handing over my bank card or PIN?
• Will the repayment leave me with enough money to live on?
• Do I understand every deduction from my grant?

And most importantly:

NEVER hand your bank card and PIN to another person simply because they are giving you a loan.

If you believe money has been deducted from your grant without your permission, or somebody is controlling your grant without your understanding, report the matter to SASSA and keep records of your bank transactions and correspondence.

SASSA’s current toll-free number is 0800 60 10 11. Its 2026 guidance also tells beneficiaries not to ignore official grant-review notifications, as failure to respond can lead to the grant lapsing or payments stopping. (South African Government)