What is the maximum interest rate on developmental credit?

Developmental credit is capped at the SARB repo rate plus 27 percentage points. At the current repo rate, that maximum is 34% per year — the highest margin of any repo-linked category.

What is the maximum legal interest rate on developmental credit in South Africa?

Q: What counts as developmental credit?

Developmental credit covers credit agreements for education, low-income housing development, or small business development, as defined in the National Credit Act.

Credit for education, low-income housing development, or small business development.

The maximum is repo rate + 27% — it moves with the SARB repo rate

National Credit Act Regulation 42(1) Table A sets the maximum for developmental credit as repo rate + 27%. Enter your quoted rate below to check it against today's maximum.

Your Credit Agreement

Credit Type

Not sure which applies? Check your credit agreement or ask your lender.

Your Quoted Rate (% per year)The interest rate quoted or charged on your agreement

Within the legal maximum

24% vs 34% maximum

Quoted rate compared against the Developmental credit maximum (per year)

Quoted Rate vs Legal Maximum

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Numeric comparison of the quoted rate against the NCA legal maximum for the selected credit type
Figure	Rate (per year)
Your quoted rate	24%
Legal maximum (Developmental credit)	34%

Maximum = SARB Repo rate (7%) + 27 percentage points, per Regulation 42(1) Table A. This checks against today's maximum — for a loan you already signed, the cap that applied on your signing date governs, which may differ if the repo rate has moved since.

If you have concerns about a quoted or charged rate, you can verify the applicable maximum and your lender's registration status via the National Credit Regulator (NCR).

Developmental Credit — current maximum

Developmental Credit formula and current NCA maximum
Category	Formula (Regulation 42(1) Table A)	Current maximum
Developmental Credit	repo rate + 27%	34% per year

Frequently asked questions

Other credit categories

All categories (hub)Mortgage Credit Facility Unsecured Credit Other Credit Short-Term Credit Incidental Credit

If you have concerns about a quoted or charged rate, you can verify the applicable maximum and your lender's registration status via the National Credit Regulator (NCR).

This is an estimate only, not financial or tax advice, and we are not a financial services provider (FSP). Your actual figures depend on your lender or provider, and your personal circumstances.