Most South African employees suffer from financial stress which has a negative effect on productivity. Due to the deteriorating economic situation in South Africa because of the COVID 19 pandemic and the general decline in the economic health of the country, more and more employees are also being financially excluded by banks as they tighten their lending criteria to minimise their risk.
This often leads to the employees having no other option but to access the informal lending market (mashonisas or loan sharks) where people get financially exploited and often subjected to illegal collection tactics.
AFS Financial Services, through its service provider, have a range of Financial Assistance and Financial Wellness solutions to address these growing problems amongst employees.
Through a range of short-term loan products, at a more competitive price than what employees can obtain in the market, employees who are financially excluded from the market (i.e. banks won’t provide them with credit) can now gain access to credit in a responsible and convenient manner. Because instalments are deducted from the employees’ salary, the risk of defaulting repayments is minimised which means that these employees can be helped. All offerings are registered with the National Credit Regulator which means that all legal requirements with regards to the provisioning of credit is strictly adhered to.
A large portion of the South African population has impaired credit records. We can assist employees with impaired credit records by negotiating with creditors, settling the outstanding debt (often at a reduced rate), and clearing judgments and adverse listings to improve the employee’s credit record. This will greatly improve the employees’ chances of accessing home loans and vehicle finance in future.
Debt Counselling can assist with employee/s over-indebtedness through budget advice, negotiation with their Credit Providers for reduced payments and the restructuring of debt. In the case where the employee is no longer over-indebted, we will prepare a court application and submit it to our attorney on record to take the application to the court and either rescind or declare the employee no longer over-indebted.
Garnishee Order Management
A Garnishee Order is a court order which grants the creditor the opportunity to receive instalments from the employee through monthly deductions off the employee’s salary. In most instances, a monthly instalment is deducted from the employee’s salary without the outstanding balance reducing, because of overcharged fees. We assist in the withdrawal of Garnishee Orders from employee payslips by means of auditing the Garnishee Orders to either withdraw the order if it is invalid or settling the outstanding debt to withdraw the order if it was valid.
Financial Literacy Education
Underpinning all these products is a basic financial literacy programme that delivers content via a series of videos. Once the employee has watched the videos a range of questions have to be answered. When the employee has worked through all the videos and answered the questions correctly the employee then qualifies for preferential products which adds an incentive to work through the financial literacy education programme.
Financial assistance FAQ’s
There is no guarantee that the loan will be approved. During the application process, normal credit checks and affordability checks take place to determine if the loan is granted or declined.
Yes. However, this may be tracked in order to ensure that the applicant is not in financial difficulties at any given stage.
- Complete and sign the application form – we cannot process the application without the information provided in all sections
- The application form needs to be filled in, signed and sent back with:
- Three months bank statements
- Copy of RSA identity document
- Copy of your latest payslip