Unsecured credit transaction caps under the NCA

An unsecured credit transaction is a credit agreement where the debt has no pledge, suretyship or personal security beyond credit life insurance. Decisimo software lets you build and run an automated credit decision from this type’s maximum interest rate and fees at the current repo rate, with the caps as decision table cells to copy.

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What counts as unsecured credit

An unsecured credit transaction is a credit transaction where the debt is not supported by a pledge, suretyship or personal security, other than credit life insurance (Reg 39(3)). Under s.8(4), a credit transaction is any credit agreement other than a credit facility.

A personal loan above the short-term limits falls under this type. Its classification determines which interest and fee caps apply.

Maximum interest rate and fees

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

Limit	Maximum amount	Rule
Interest rate	21 percentage points a year above the South African Reserve Bank repo rate, 28.25% a year at 7.25% from 23 September 2026	Reg 42 Table A
Initiation fee	Fixed amount R165, plus 10% of deferred amount above R1,000, 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

Unsecured credit 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.

Interest, service fee and credit life limits

Sets the maximum interest rate at the repo rate plus 21 percentage points a year, the service fee at R60 a month and credit life at R4.50 per R1,000.

`loan.credit_type` Condition	`pricing.max_margin_over_repo` Result	`pricing.max_service_fee` Result	`pricing.max_credit_life_per_1000` Result
`=unsecured`	`21`	`60`	`4.5`

Initiation fee limits by amount

Sets the maximum initiation fee at R165 plus 10% of the amount above R1,000, capped at R1,050.

`loan.credit_type` Condition	`loan.amount` Condition	`fee.fixed` Result	`fee.factor` Result	`fee.above` Result
`=unsecured`	`<=1000`	`165`	`0`	`1000`
`=unsecured`	`(1000,9850]`	`165`	`0.1`	`1000`
`=unsecured`	`>9850`	`1050`	`0`	`1000`

Affordability assessment

Reg 23A applies in full to an unsecured credit transaction. Under 23A(13), repayment history must be checked within seven business days before approval.

Under s.80 and s.81, the lender assesses the consumer’s understanding, repayment history, means, prospects and obligations, and does not enter into a reckless agreement.

Unsecured credit in 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

R213.2bn

Share of credit book

8.3%

Credit granted

R27.8bn

Book 120 days or more in arrears

18.4%

Build the decision

Use the NCA affordability calculator to work the caps for this type at a repo rate, and build the decision from the unsecured loan decision template for an online short-term or unsecured loan. 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 makes a loan an unsecured credit transaction under the NCA?

The debt must not be supported by a pledge, suretyship or personal security, other than credit life insurance (Reg 39(3)). A credit transaction is any credit agreement other than a credit facility under s.8(4).

What is the maximum interest rate on an unsecured loan in South Africa?

Reg 42 Table A sets the maximum at the repo rate plus 21 percentage points a year. The applicable cap changes with the repo rate.

What is the maximum initiation fee on an unsecured loan?

Reg 42 Table B sets the maximum at R165 plus 10% of the amount above R1,000, capped at R1,050. The fee depends on the amount deferred.

Can a consumer under debt review get an unsecured loan?

Section 88(1) bars a consumer under debt review from taking further credit, except under a consolidation agreement. The NCR treats credit to a consumer under debt review as reckless, except for a consolidation loan.