How unsecured loans are supporting women through life’s pressures 

Our physical and emotional wellbeing are closely tied to our financial stability and, when we are unable to cover a medical bill, repair a car, or pay school fees, the stress can quickly become overwhelming.

Recent research shows that 87% of South Africans report financial stress, with 63% experiencing anxiety over money and nearly half struggling to meet basic monthly expenses like food and rent. In this context, access to responsible credit can play an important role in supporting households through short-term financial pressures.

Unsecured loans have long been seen as a last resort. But the reality today is far more nuanced. “Our customers are not using credit to live beyond their means or fund a certain lifestyle,” says Craig Whittaker, Chief Operating Officer at digital financial services provider Finchoice. “They’re using our loans to bridge short-term, unexpected financial setbacks to protect their families and put them in control of their finances.”

Finchoice statistics show that these customers are predominantly millennial women, with more than 50% being single with dependents. Many are self-employed, balancing household needs and the cost of raising their families, often on their own. Most manage their money digitally and log into the app several times a month to stay on top of their finances.

“But not all lenders are created equal.” Whittaker warns. “Borrowing should only be done through reputable lenders who are registered credit providers with the National Credit Regulator and bound by the National Credit Act.” This requires lenders to assess affordability before approving a loan, disclose all fees upfront, and avoid unaffordable repayments. In this way, borrowers can be safe in the knowledge that they are protected by the Act.

Yet around 40,000 informal lenders operate outside of these requirements, leaving the customer unprotected by the Act and often leading to unmanageable loan amounts, uncontrolled high interest rates, and unrealistic payment terms..

“The digital convenience of trusted, transparent platforms, coupled with flexible products and regulated pricing are reasons why more and more South Africans are accessing credit from lenders like Finchoice,” says Whittaker.

Used responsibly, unsecured loans offer more than access to money – they also offer peace of mind and control. “For South African women who are often met with outdated traditional credit protocols, unsecured loans can be a critically empowering tool, offering breathing room in a time of pressure. And that breathing room – whether it’s keeping a child in school or fixing a broken car can be the difference between surviving and thriving,” says Whittaker.