South Africa
National Credit Act Interest Caps Explained: Maximum Loan Rates and Fees in South Africa
South Africa caps interest by credit type and borrower risk. Knowing the cap stops overcharging.
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- Legal basis
- National Credit Act
- Cap basis
- Repo rate plus a margin, by credit type
- Fee caps
- Initiation and service fees also capped
- Regulator
- National Credit Regulator
Caps vary by product and risk
The maximum is set as a formula linked to the repo rate, with different margins for mortgages, credit cards and unsecured loans. Higher-risk unsecured lending carries the widest margin.
Fees are capped too
Initiation fees and monthly service fees have legal maxima. A quote above them is non-compliant, not merely expensive.
Check the credit agreement
It must state the interest rate, the caps applied and the total cost. Compare the stated rate to the formula rather than accepting it.
The NCR enforces it
Complaints go to the National Credit Regulator. Debt counsellors can also check an agreement for overcharging.
FAQ
Is there a single flat cap?▾
No, it varies by credit type and risk band.
Are fees capped?▾
Yes, initiation and service fees.
Where do I complain?▾
The National Credit Regulator.
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