Credit facility under the NCA and its caps

Decisimo makes credit facility decisions easy to automate and run, for store cards, credit cards, overdrafts and revolving loans. A credit facility is revolving credit, and this page gives its maximum rate and fees at the current repo rate, with caps as decision table cells to copy into a credit decision.

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What counts as a credit facility

Under s.8(3), a credit facility is an agreement where the lender supplies goods or services, or pays amounts on the consumer’s behalf from time to time. The consumer repays on a revolving basis, and the NCR lists credit cards, store cards, overdrafts and revolving loans under this type.

The decision sets a limit as well as an approval. On request, s.62(1) requires the dominant reason in writing for offering a lower limit, refusing a limit increase or refusing to renew a card or facility.

Maximum rate and fees for a credit facility

Reg 42 sets the maximum interest rate and initiation fee, and Reg 44 caps the monthly service fee. The interest cap is set over the repo rate, so it moves with each Monetary Policy Committee decision.

Limit	Maximum amount	Rule
Interest rate	14 percentage points a year above the South African Reserve Bank repo rate, 21.25% a year at 7.25% from 23 September 2026	Reg 42 Table A
Initiation fee	Fixed amount R165, plus 10% of deferred amount above R1,050, capped at R1,050	Reg 42 Table B
Monthly service fee	Monthly cap of R60	Reg 44
Credit life cost	R4.50 for every R1,000 of the amount deferred	Credit Life Insurance Regulations 2017

Credit facility caps as decision table cells

Each table below copies as cells to paste into a decision table, with one column per attribute. The attribute paths are examples to rename to your own data.

Credit facility rate and recurring fees

Sets the maximum interest rate over the repo rate, plus the service fee and credit life cost for a credit facility.

`loan.credit_type` Condition	`pricing.max_margin_over_repo` Result	`pricing.max_service_fee` Result	`pricing.max_credit_life_per_1000` Result
`=credit_facility`	`14`	`60`	`4.5`

Credit facility initiation fee by amount

Sets the maximum initiation fee by amount, as a fixed amount plus a factor times the amount above a threshold.

`loan.credit_type` Condition	`loan.amount` Condition	`fee.fixed` Result	`fee.factor` Result	`fee.above` Result
`=credit_facility`	`<=1050`	`165`	`0`	`1050`
`=credit_facility`	`(1050,9900]`	`165`	`0.1`	`1050`
`=credit_facility`	`>9900`	`1050`	`0`	`1050`

Affordability assessment for a credit facility

Reg 23A applies to credit facilities, except temporary or unilateral limit increases. Check repayment history within seven business days before approval or a limit increase.

Section 74 prohibits a limit increase that takes effect unless the consumer declines it. On request, s.62(1) requires the dominant reason in writing for offering a lower limit, refusing an increase or refusing renewal.

Credit facility market figures

The tiles below show figures from the NCR’s quarterly market report, and the consumer credit tracker carries the series.

NCR figures for the quarter ended June 2026

Gross debtors book

R371.1bn

Share of credit book

14.5%

Credit granted

R25.4bn

Book 120 days or more in arrears

12.0%

Build the decision

Use the NCA affordability calculator to work the caps for a type at a repo rate, and use the store credit decision template to build a related decision. This page reads the regulations for building a decision, and the lender’s legal team checks it against the current text.

Other NCA credit types

Questions we get asked

What counts as a credit facility under the NCA?

Under s.8(3), it is an agreement where a lender supplies goods or services, or pays amounts on the consumer’s behalf from time to time. The consumer repays on a revolving basis, and credit cards, store cards, overdrafts and revolving loans fall within this type.

What is the maximum interest rate on a store card or credit card in South Africa?

For a credit facility, Reg 42 Table A sets the annual maximum at the repo rate plus 14 percentage points. Store cards and credit cards fall within this credit type.

Does a credit limit increase need a Reg 23A affordability assessment?

Reg 23A applies to credit facilities, but not to temporary or unilateral limit increases. For other limit increases, repayment history must be checked within seven business days before approval.

What reason must a lender give for offering a lower credit limit?

On request, s.62(1) requires the lender to give the dominant reason in writing for offering credit at a lower limit. If an adverse bureau report drove the decision, s.62(2) requires the bureau’s name and contact details.