Can I Get Credit or a Loan While Under Debt Review?
No. While you are under debt review, you cannot legally get new credit from any registered lender. Section 88 of the National Credit Act prohibits it, and your profile is flagged so registered lenders must decline you. Any lender offering you a loan while you are under review is either breaking the law or running a scam. Taking one can end your debt review and strip your protection.
The short answer, and why it is actually good news
This is a question almost everyone under debt review asks, usually because an emergency has come up and money is tight. The answer is a flat no, and that can feel harsh in the moment. But the restriction is not there to punish you. It is there to protect you, and once you see why, it makes sense.
The entire point of debt review is to stop the cycle of borrowing to cover borrowing. You are under review precisely because the debt got out of control. Letting you take on more credit in the middle of that would defeat the whole purpose, undo the restructured plan, and push you further under. So the law closes that door deliberately, while you fix what is already there.
What the law says
The prohibition is not a guideline or a lender preference. It is written into the National Credit Act:
- Section 88 of the NCA prohibits a registered credit provider from extending new credit to a consumer who is under debt review.
- The moment you enter debt review, your credit profile is flagged on the bureaus as “under debt review.”
- Any registered lender who runs a credit check sees that flag and must decline your application.
- Granting credit to someone already over-indebted would itself be reckless credit, which is illegal.
This covers all the usual forms of credit:
- Personal loans
- Credit cards
- Store and retail accounts
- Vehicle finance
- New home loans
So no registered bank, micro-lender or retailer can lawfully give you credit while the flag is on your profile. If they run a proper check, they will not.
So who are the people “offering loans to people under debt review”?
This is the part that matters most, because searching for a loan under debt review will turn up plenty of adverts promising exactly that. Understand who is behind them:
| Who they are | What is really going on |
|---|---|
| Advance-fee scammers | They take an “admin fee,” “insurance” or deposit upfront, then disappear with no loan |
| Illegal lenders (mashonisas) | Unregistered loan sharks operating outside the NCA, often charging extreme interest and collecting through intimidation |
| Misleading adverts | Some bait you with “loans under debt review” to harvest your details or upsell something else |
A legitimate, registered lender cannot give you credit under debt review. So by definition, anyone promising it is either not legitimate, not registered, or not telling you the truth. That is not a maybe. It is a reliable rule you can use to protect yourself.
The real danger: losing your protection
Here is the consequence people do not see coming. Taking a loan while under debt review does not just risk a bad deal, it can unravel the protection you are under review to get.
- A secret loan cannot be included in your debt review plan.
- If your debt counsellor or creditors discover it, your debt review can be terminated.
- If the review is terminated, you lose the legal protection of your assets, the very shield keeping your home and car safe.
- You are then exposed again to creditor action, with fresh debt on top.
So the loan that felt like a lifeline can be the thing that sinks the whole arrangement. It is genuinely not worth the risk.
What to actually do in an emergency
Emergencies are real, and “just don’t borrow” is not a plan on its own. The right first move is also the simplest:
- Talk to your debt counsellor first. This is the single most useful step. They can sometimes review and renegotiate your payment plan to free up cash if your circumstances have genuinely changed.
- Avoid loan sharks and advance-fee offers entirely, no matter how urgent it feels. They make a bad situation far worse.
- Do not take a secret loan to bridge a gap, because of the termination risk above.
Your debt counsellor would far rather hear about the emergency and adjust the plan than discover a hidden loan later. Communication is the tool here, not new credit.
When you can borrow again
The restriction is temporary, not permanent. It lifts when you exit debt review properly:
- Once you complete debt review and receive your clearance certificate (Form 19), the debt review flag is removed from your credit profile.
- With the flag gone, you can apply for credit again as a normal consumer.
- Many people find their credit standing actually improves after debt review, because they have cleared their debts and built a record of consistent payments.
So debt review is not the end of your access to credit. It is a reset. You step back from borrowing while you recover, then return to it on much firmer ground.
How VS Debt Counseling helps
If you are under debt review and feeling financial pressure, the answer is a conversation, not a loan. Vanessa Soma at VS Debt Counseling Specialists is registered with the National Credit Regulator under registration number NCRDC4498 and a member of the Debt Counsellors Association of South Africa.
- If your situation has changed, we can look at whether your plan can be reviewed.
- We help you exit cleanly with a clearance certificate when your debts are settled, which is what restores your access to credit.
You can read more on our services page, see the wider advantages on our benefits of debt review page, and check our credentials on the about page.
The bottom line
You cannot legally get credit while under debt review. Section 88 of the National Credit Act prohibits it, your profile is flagged, and registered lenders must decline you. Anyone promising a loan anyway is an illegal lender or a scam, and taking one can terminate your debt review and strip your asset protection. If money is tight, speak to your debt counsellor about your plan rather than borrowing. Once you finish and get your clearance certificate, the flag lifts and you can borrow again, usually on better footing than before.
Under debt review and facing a financial emergency? Do not risk a loan. Book an obligation-free consultation with VS Debt Counseling Specialists in East London, and we will look at your options properly.
