At Fido, we are committed to responsible lending. Before we can approve a credit application, South African regulations require us to assess whether the credit is affordable for you.
This process is known as an affordability assessment and is required under the National Credit Act (NCA). Its purpose is to help ensure that customers do not take on credit that may be difficult to repay.
Why is an Affordability Assessment required?
The affordability assessment helps us understand your financial situation by reviewing your income and existing financial commitments. This allows us to make responsible lending decisions and offer credit that aligns with your ability to repay.
How does the Affordability Assessment work?
As part of your application, you will be asked to provide access to your recent banking information or submit your last three months' bank statements.
Our system then reviews information such as:
- Your income deposits
- Existing financial obligations
- Regular expenses and spending patterns
- Overall affordability based on available disposable income
The assessment is completed automatically as part of the application process.
Important to know
The affordability assessment is not unique to Fido. It is a regulatory requirement under the National Credit Act and is used by credit providers across South Africa to promote responsible lending and protect consumers from over-indebtedness.