National Credit Act, 2005 (Act No. 34 of 2005)

Regulations

Purchase

(1)	The following maximum rates of interest will apply:

Table A : Maximum Prescribed Interest Rates

Credit type

Maximum Prescribed Interest Rate

1.	Mortgage agreements

RR + 12% per year

2.	Credit facilities

RR + 14% per year

3.	Unsecured credit transactions

RR + 21% per year

4.	Developmental credit agreements

RR + 27% per year

4.1	Small business

4.2	Low income housing (unsecured)

5.	Short-term transactions

5% per month on the first loan and 3% per month on subsequent loans within a calender year

6.	Other credit agreements

RR + 17% per year

7.	Incidental credit agreements

2% per month

[Regulation 42(2), Table A, amended by regulation 2 of Notice No. 1080, GG 39379, dated 6 November 2015]

Where :

(a)	RR indicates the reference rate, being the ruling SA Reserve Bank Repurchase Rate,

(b)	The intrest rate on short term credit transactions and incidental credit agreements must be disclosed as a monthly interest rate, in such disclosure as is required by the Act and these regulations.

(2)	The following maximum limits will apply to initiation fees:

Table B : Maximum Initiation Fee

Sub-sector		Maximum Initiation Fee
Mortgage agreements		(a)	R1 100 per credit agreement, plus, 10% of the amount of the agreement in excess of R10 000
		(b)	But never to exceed R5 250.
Credit facilities		(a)	R165 per credit agreement, plus, 10% of the amount in excess of R1 050
		(b)	But never to exceed R1 050.
Unsecured credit transaction		(a)	R165 per credit agreement, plus 10% of the amount in excess of R1 000
		(b)	But never to exceed R1 050
Developmental agreements
	For the development of a small business	(a)	R275 per credit agreement, plus 10% of the amount in excess of R1 000
		(b)	But never to exceed R2 600.
	For low income housing (unsecured)	(a)	R550 per credit agreement, plus 10% of the amount in excess of R1 000
		(b)	But never to exceed R2 600
Short term credit transactions		(a)	R165 per credit agreement, plus 10% of the amount in excess of R1 000
		(b)	But never to exceed R1 050
Other credit agreements		(a)	R165 per credit agreement, plus 10% of the amount in excess of R1 000
		(b)	But never to exceed R1 050
Incidental credit agreements		Nil

[Regulation 42(2), Table B, amended by regulation 3 of Notice No. 1080, GG 39379, dated 6 November 2015]

Where :

(a)	The amount of the agreement is the amount deferred in terms of the agreement.