Loan cost and interest cap checker
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.
Your details
| Charge | Yours | Maximum | Within? |
|---|---|---|---|
| Interest rate (cap: repo rate + 21% = 28.25% per year) | 24% | 28.25% | Yes |
| Initiation fee | R1 050.00 | R1 050.00 | Yes |
| Monthly service fee | R60.00 | R60.00 | Yes |
Monthly instalment (estimate)
R644.23
Over 24 months, including the service fee.
- Total cost of credit
- R5 461.41
- Total you repay
- R15 461.41
How we worked it out
- Amount borrowedR10 000.00
- Initiation fee added to the loanR1 050.00
- Repayment for 24 months, before the service feeR584.23
24% per year, charged monthly
- Monthly service feeR60.00
- Monthly instalmentR644.23
- Total interestR2 971.41
- Total service feesR1 440.00
- Initiation feeR1 050.00
- Total cost of creditR5 461.41
- Total you repayR15 461.41
- The caps on fees are printed as rand amounts; the regulations do not say whether VAT is included. If your agreement adds VAT, ask the credit provider or the NCR how it is treated.
- This is an estimate for a fixed rate with equal monthly payments. It leaves out credit life insurance and any default charges. Your pre-agreement quotation shows the actual figures.
Maximum interest rates at a repo rate of 7.25%
| Type of credit | Formula | Maximum |
|---|---|---|
| Mortgage agreement (home loan) | repo + 12% | 19.25% pa |
| Credit facility (credit card, store card, overdraft) | repo + 14% | 21.25% pa |
| Unsecured credit transaction (personal loan) | repo + 21% | 28.25% pa |
| Developmental credit: small business | repo + 27% | 34.25% pa |
| Developmental credit: low income housing (unsecured) | repo + 27% | 34.25% pa |
| Short-term credit transaction | per month | 5% pm |
| Other credit agreement (e.g. vehicle finance, instalment sale) | repo + 17% | 24.25% pa |
| Incidental credit agreement (e.g. late-payment interest on an account) | per month | 2% pm |
The repo rate is 7.25% from 25 September 2026. These caps apply to agreements entered into on or after 6 May 2016. For example, a home loan may cost at most 19.25% a year and a personal loan 28.25% a year. A repeat short-term loan from the same credit provider in the same calendar year is capped at 3% a month.
Fees
- Initiation fee: once-off, capped by Table B. For a R10 000 personal loan, the most is R1 050; for a R2 000 loan, R265. It may be paid up front or added to the loan.
- Service fee: at most R60 a month.
- Interest: calculated daily on the outstanding balance (regulation 40).
See NCA interest rate and fee caps for the full initiation fee table and definitions, and how to complain to the NCR.
Frequently asked questions
What is the maximum interest rate on a personal loan in South Africa?
For an unsecured credit transaction the cap is the repo rate plus 21 percentage points a year. At a repo rate of 7.25% that is 28.25% a year (Table A of the National Credit Regulations, as substituted in 2015).
How much can a lender charge as an initiation fee?
It depends on the type of credit. For an unsecured loan, credit facility or short-term loan the cap is R165 plus 10% of the amount above R1 000, up to R1 050. It may never be more than 15% of the principal debt (regulation 43(3)).
What is the maximum monthly service fee?
R60 a month for every type of credit agreement (regulation 44).
Does the cap change when the repo rate changes?
For most types of credit the cap is the repo rate plus a fixed margin, so it moves with the repo rate. Short-term credit (5% a month on a first loan) and incidental credit have fixed monthly caps.
What if my loan is above the cap?
Check that you chose the right type of credit and entered the rate as it appears on your agreement. You can ask the credit provider to explain the charges. If it is not resolved, you can lodge a complaint with the National Credit Regulator.