What is the maximum interest rate on a short-term loan?

Short-term credit has a flat monthly maximum: 5% per month for a first short-term loan in a calendar year, and 3% per month for a subsequent one. Unlike the other categories, it is not linked to the SARB repo rate.

Why is the short-term credit maximum different for a first and subsequent loan?

Regulation 42(1) Table A sets a higher monthly maximum for a consumer's first short-term loan in a calendar year, and a lower maximum for any subsequent short-term loan in the same year.

What is the maximum legal interest rate on a short-term loan in South Africa?

Small, short-term loans, typically repaid within a few months.

The maximum is a flat statutory monthly rate — it does not move with the repo rate

National Credit Act Regulation 42(1) Table A sets a flat per-month maximum for short-term credit. Enter your quoted monthly rate below to check it against the legal maximum.

Your Credit Agreement

Credit Type

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

Is this your first short-term loan this calendar year?

The maximum is higher for a first short-term loan in a calendar year than for a subsequent one.

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

Above the legal maximum

24% vs 5% maximum

Quoted rate compared against the Short-term credit maximum (per month)

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 month)
Your quoted rate	24%
Legal maximum (Short-term credit)	5%

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).

Short-Term Credit — current maximum

Short-Term Credit formula and current NCA maximum
Category	Formula (Regulation 42(1) Table A)	Current maximum
Short-Term Credit	flat 5% per month for a first loan in a calendar year, 3% per month for a subsequent loan	5% per month

This category's maximum is a flat monthly rate, not an annual rate — it is not linked to the SARB repo rate the way the other five categories are.

Frequently asked questions

Other credit categories

All categories (hub)Mortgage Credit Facility Unsecured Credit Developmental Credit Other 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.