What is the maximum legal interest rate on an unsecured loan in South Africa?
Most personal loans — credit not secured by a mortgage bond, pledge, or other collateral.
Your Credit Agreement
Not sure which applies? Check your credit agreement or ask your lender.
Within the legal maximum
24% vs 28% maximum
Quoted rate compared against the Unsecured credit maximum (per year)
Quoted Rate vs Legal Maximum
| Figure | Rate (per year) |
|---|---|
| Your quoted rate | 24% |
| Legal maximum (Unsecured credit) | 28% |
Maximum = SARB Repo rate (7%) + 21 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).
Unsecured Credit — current maximum
| Category | Formula (Regulation 42(1) Table A) | Current maximum |
|---|---|---|
| Unsecured Credit | repo rate + 21% | 28% per year |
Frequently asked questions
Other credit categories
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.