FAQ’s

1. What are the benefits, to us to outsource our staff credit requirements to SMA?
SMA meets your obligation to provide emergency credit to your staff in a morally and socially responsible way. We free up your cash flow and solve all the security, administrative and regulatory responsibilities associated with staff loans.
2. How do my staff benefit?
Your staff are not exploited and benefit from the most cost effective credit available to them. They benefit from the privacy, safety and convenience of applying for emergency credit over the phone.
3. Is SMA a registered legal lender?
Yes. SMA is duly registered with the National Credit Regulator in terms of the National Credit Act 34 of 2005.
4. How does my company have SMA lend to its staff?
Your company enters into an Employee Loan Facilitation Agreement (“ELFA” – see downloads) with SMA. Simply email your interest following the contact link and an SMA ELFA broker will contact you.
5. After signing the ELFA is there anything more we are required to do?
Once a month you simply include in the staff members pay envelope a loan schedule insert, which we provide, detailing all costs associated with the loan.
6. How does my staff member apply for a loan?
He/she simply sms’s our national Call Centre number (see contacts for details) and we will call him/her and process the loan over the telephone. The call is recorded and forms part of the loan contract.
7. Are the recordings in English?
Yes
8. Is my company authorized by the staff member to deduct the loan repayment from his/her salary?
Yes. Your staff member gives you written permission prior to the loan being approved for payment. This permission is also confirmed as part of the recorded call.
9. Does my company need to be registered with the NLR?
No, not if you outsource to SMA.
10. What interest rate will SMA charge my staff?
24% per annum.
11. Are there any other charges?
Yes. An inception and administration fee is charged. These fees vary depending on the profile of the employer and the size of the loan. The charges, like our interest rate, are highly competitive and are well below what is stipulated by the NLR. A schedule of these fees is available and is fully explained and agreed by the borrower as part of the recorded loan contract.
12. What is the maximum term of the staff loan?
30 days
13. What is the minimum and maximum loan SMA offers?
R300 – R1000
14. Can my staff member loan more than once in a month?
Yes provided his/her affordability assessment allows.
15. Is there a cut off day in the month for granting loans?
Yes. A predetermined cut off is applied, after consultation with you, to allow for processing your payroll run.
16. How does my staff member get a statement of his/her loan?
He/she simply calls our Call Centre and a statement will be SMSed to your staff member.
17. Does SMA undertake a credit and affordability assessment before granting my staff member a loan?
Yes. We fully comply with the NLR regulation in this regard.
18. How often is the affordability assessment carried out on my staff member/s?
Once in a 3 month cycle.
19. Can SMA service companies nationally?
Yes. SMA operates nationally, loans are processed by our Call Centre and the funds are dispersed by EFT transfer directly to the borrower’s bank account.
20. Is SMA authorized to carry out credit checks on my staff?
Yes. You are authorised in terms of the staff members employee contract and you in turn authorise us (ELFA) to carry out the checks as your agent. We also obtain consent from the staff member in the recorded telephone application.
21. Is the loan completed over the phone a binding agreement?
Yes. The call is recorded and the recording is available if required.
23. How will I know what amount to deduct from my staff members salary/wages to repay his/her loan?
At one month intervals and to coincide with your payroll run, SMA will render an electronic statement to you setting out the name and company number of each employee who has entered into a loan agreement and what amount is to be deducted from that staff member’s remuneration.
24. Does SMA loan to weekly paid wage earners?
Yes
25. What if my staff member dies before we have deduced the loan repayment?
SMA has credit insurance to cover this eventuality.
26. What if my staff member’s employment is terminated before the end of the month and has an unpaid loan with SMA?
You must inform SMA immediately and SMA will render an electronic statement to you setting out the name and company number of the employee and what amount is to be deducted from that staff member’s final salary.