What an Affordability Assessment Actually Checks — and How to Prepare

When you apply for credit from a registered provider in South Africa, approval is not just a yes or no on whether you want the money. The lender must first check whether you can repay it comfortably. That check is called an affordability assessment, and it is required by law.

Understanding what the assessment looks at helps in two ways: you can prepare the right information, and you can use the same checks yourself before you ever apply.

1. Your income — verified, not just stated

The starting point is your income after deductions. A lender will usually want to verify it rather than take a figure on trust, so it helps to have recent proof ready.

• the most recent payslips or proof of income
• bank statements showing salary deposits
• for the self-employed, statements or financials that show regular earnings

2. Your existing commitments

Affordability is about what is left after your real monthly costs, not your gross pay. The assessment considers existing loan and account repayments, and typical living expenses such as rent or bond, food, transport, school and medical costs.

3. Your credit record

A registered lender checks your record with the credit bureaux, with your consent, to see how you have managed credit before. A few missed payments do not automatically mean a decline, but they form part of the overall picture.

4. Whether the loan would over-indebt you

Finally, the assessment weighs everything together: if the new repayment would push your total commitments beyond what your income can responsibly support, the loan should not be granted.

How to prepare

• recent proof of income and bank statements
• a written list of your monthly expenses and existing repayments
• your identity document
• a clear reason for the loan and a repayment plan

Walking in with these ready makes the process faster and the outcome clearer — and it means you have already asked yourself the most important question before the lender does.