General information, not financial or legal advice. KayaClear is not a credit provider, not a debt counsellor and not the National Credit Regulator. We do not recommend any lender, product or debt counsellor.
NCA interest rate and fee caps
The National Credit Regulations set the most a credit provider may charge in interest, initiation fees and service fees. Here are the current tables, with the interest caps worked out at today's repo rate of 7.25%.
2 points we are still verifying
The regulations do not say whether the initiation and service fee caps include VAT. KayaClear compares the amounts you enter with the caps as printed and flags the VAT question instead of adding VAT.
Check the repo rate after the Monetary Policy Committee statement of 19 November 2026 and update this table.
General information, not legal advice. Your agreement shows the type of credit and the rate. If you think a charge is above the cap, raise it with the credit provider and then the National Credit Regulator.
Table A: maximum interest rates
Type of credit
Formula
At repo 7.25%
Mortgage agreement (home loan)
repo + 12% a year
19.25% pa
Credit facility (credit card, store card, overdraft)
repo + 14% a year
21.25% pa
Unsecured credit transaction (personal loan)
repo + 21% a year
28.25% pa
Developmental credit: small business
repo + 27% a year
34.25% pa
Developmental credit: low income housing (unsecured)
repo + 27% a year
34.25% pa
Short-term credit transaction
5% per month (3% on later loans in the same year)
5% pm
Other credit agreement (e.g. vehicle finance, instalment sale)
repo + 17% a year
24.25% pa
Incidental credit agreement (e.g. late-payment interest on an account)
2% per month
2% pm
“Repo” is the ruling South African Reserve Bank repurchase rate (regulation 42(1)). It is 7.25% from 25 September 2026; the next Monetary Policy Committee statement is due on 19 November 2026.
Table B: maximum initiation fees
Type of credit
Maximum initiation fee
Mortgage agreement (home loan)
R1 100 plus 10% of the amount above R10 000, up to R5 250
Credit facility (credit card, store card, overdraft)
R165 plus 10% of the amount above R1 000, up to R1 050
Unsecured credit transaction (personal loan)
R165 plus 10% of the amount above R1 000, up to R1 050
Developmental credit: small business
R275 plus 10% of the amount above R1 000, up to R2 600
Developmental credit: low income housing (unsecured)
R550 plus 10% of the amount above R1 000, up to R2 600
Short-term credit transaction
R165 plus 10% of the amount above R1 000, up to R1 050
Other credit agreement (e.g. vehicle finance, instalment sale)
R165 plus 10% of the amount above R1 000, up to R1 050
Incidental credit agreement (e.g. late-payment interest on an account)
None may be charged
In every case the initiation fee may not be more than 15% of the principal debt (regulation 43(3)).
Service fee
At most R60 a month, for every type of credit. An annual fee may not be more than twelve times that (regulation 44).
Short-term credit
A short-term credit transaction is for up to R8 000, repaid within 6 months (regulation 39(2)). Check your own figures with the loan cost and interest cap checker.
Frequently asked questions
Do the caps apply to my old loan?
The current tables apply to credit agreements entered into on or after 6 May 2016, according to NCR Circular 8 of 2016. Older agreements fall under the caps that applied when they were made.
Is VAT included in the fee caps?
The regulations give the caps as rand amounts and do not say whether VAT is included. We compare amounts as printed and flag the question rather than guess.
General information, not financial or legal advice. KayaClear gives general information and estimates based on the National Credit Act 34 of 2005, the National Credit Regulations, the Prescription Act 68 of 1969 and the figures you enter. It is not financial advice as defined in the Financial Advisory and Intermediary Services Act (FAIS), and not legal advice. KayaClear is not a credit provider, not a registered debt counsellor and not an authorised financial services provider, and does not recommend any lender, credit product, debt counsellor or debt solution. It is not connected to the National Credit Regulator (NCR) or the National Consumer Tribunal. Your credit agreement, statements and certificate of balance show the actual amounts. For complaints about credit, contact the NCR; for help with over-indebtedness, a debt counsellor registered with the NCR.