How South African women are turning to personal loans for long-term empowerment

By Alet Griesel, CEO: Sanlam Credit Partnerships

Credit has long had a bad reputation. For years, it’s been associated with financial distress, risky decisions and debt traps. But South African women are rewriting that narrative. Through careful, deliberate borrowing, many are using credit as a tool for resilience – enabling education, covering unexpected emergencies, and building a more financially secure future for their families.

This is according to Alet Griesel, CEO: Sanlam Credit Partnerships, part of the Sanlam Fintech cluster, who says that more than 50% of credit granted in South Africa today goes to women. “This was not the case thirty or forty years ago. A woman working in a bank couldn’t even apply for a home loan without her manager’s approval. Thankfully, that’s no longer the case. Today, credit access follows income and responsibility – not gender – and women have become a significant credit demographic.”

The country’s persistent gender pay gap, compounded by often unequal caregiving responsibilities, has made access to credit critical for many women-led households. Stats SA’s latest General Household Survey reveals that 42.4% of households in South Africa are headed by women. Meanwhile, the World Economic Forum’s Global Gender Gap Report shows that women typically earn between 23% and 35% less than men.

“For these women – many of whom manage their household on a single income – credit is not a crutch, but a vital tool to help navigate life’s pressures,” says Griesel.

Responsible vs. irresponsible credit use

Responsible credit isn’t about borrowing for the sake of it. It’s a strategic tool to improve the long-term trajectory of one’s life. “When used wisely, credit can create sustainable value – better education; safer living conditions; a more stable future,” says Griesel. “But that starts with understanding your own affordability and only taking on debt you know you can repay.”

Irresponsible credit, by contrast, often funds non-essential spending: travel, superficial lifestyle upgrades or luxury items. “Credit should never be used to finance a life you can’t afford. Save for that bucket-list trip if it’s beyond your means,” urges Griesel. “That’s when people get into trouble – and the bad reputation follows,” she warns.

Technology, accessibility and changing consumer expectations

Technology has played a pivotal role in making credit more accessible. Consumers now expect to apply, engage and manage their loans online – often without any face-to-face contact.. “In response to this, we’re working with TymeBank to develop a joint venture focused on responsible lending through unassisted digital channels. The partnership has received Competition Commission approval but is still subject to final regulatory sign-off.”

That said, not everyone is ready to go it alone. “While many people prefer a quick digital journey, others still want help. We will offer both options – assisted and unassisted – so customers can engage in the way that suits them.”

Coaching consumers to make better financial decisions

As part of Sanlam’s new Fintech cluster – a dedicated business unit focused on digital-first innovation and expanding access to financial services, Sanlam Credit Solutions, headed by Afua Darko, plays a key role in supporting responsible lending. The platform gives consumers a clearer view of their credit health, with coaching and tools to help improve it, and access to a personal loan if appropriate.

“Sanlam Credit Solutions doesn’t just present a loan offer,” explains Griesel. “It assesses applicants first and leads with education and coaching. If you don’t qualify for credit, we won’t show you an offer. But if you do, and the loan could help address a pressing need – like school fees or a medical emergency – we present it as one of several financial tools available.”

The platform also feeds into Sanlam’s broader ecosystem of personal loans, creating a seamless journey from credit health to credit application. This focus on education and personalised coaching is especially important in a market where access to credit is expanding – not just through digital platforms, but also through targeted marketing and partner networks.

“In an environment like this, consumers need more than just access; they need guidance on how and when to use credit – and when not to,” says Griesel, who offers the following four credit tips:

1. Use credit to improve your life: Borrow for education, healthcare, or other investments that offer long-term benefits or when the need is urgent

2. Don’t borrow for luxury expenses: Whether it’s your dream holiday or a much-needed pamper session – if you can’t afford it, don’t borrow for it, save for it.

3. Know your limits: Only take on what you know you can realistically repay, even if you're offered more.

4. Take ownership of your financial decisions: Just because a lender approves you doesn’t mean the credit is right for you. Make the decision based on your own situation, not what’s on offer.

“Being a responsible lender isn’t enough if consumers are using credit irresponsibly,” adds Griesel. “But when both sides get it right, the outcome can be life-changing, especially in households where every rand counts,” she concludes.