The most a lender can charge you
South African credit rates are capped by law. The cap depends on the type of credit and the repo rate.
How the caps work
The illustration below uses a repo rate of 7,00%. Most annual caps add a fixed margin, so the result changes when the repo rate changes. Check the current repo rate and regulations before relying on a figure.
| Type of credit | Formula | Cap today |
|---|---|---|
| Mortgages | Repo + 12% | 19% |
| Credit cards, store accounts and overdrafts | Repo + 14% | 21% |
| Other credit agreements | Repo + 17% | 24% |
| Unsecured loans | Repo + 21% | 28% |
| Developmental credit | Repo + 27% | 34% |
| Short-term loans | Monthly rule | 5% a month on a first loan, 3% on later loans that year |
The cap that applies is the one in force when the agreement was made.
Maximum fees
The maximum initiation fee depends on the agreement type, amount and regulated formula; our calculator uses R1 207,50 as a disclosed illustration, not a universal cap. It uses a monthly service fee of R69,00. Confirm the current legal limits and the provider's written quotation before deciding.
If you think you were overcharged
Ask the lender for a written breakdown. If it is not resolved, complain to the National Credit Regulator.