How the interest rate limit checker works
Last updated 10 November 2026
The National Credit Act caps the interest a registered credit provider may charge. The cap depends on the type of credit and on the Reserve Bank rate when you signed.
How it works
- Limit = policy rate on the date of the agreement + the margin for that type of credit.
- Payday loans and incidental credit are capped as a rate each month.
- The tool compares the rate you enter with that limit.
Worked example
With the starting figures:
- For this type of credit the formula gives 28.25% a year.
- The rate entered is within it.
What the National Credit Act limits
The National Credit Act caps the interest a registered credit provider can charge. The cap depends on the type of credit, such as a mortgage, a credit facility, an unsecured loan or a short-term loan, and on the Reserve Bank's policy rate when the agreement was made. The checker compares the rate on your agreement with the formula.
What you need
- The type of credit on your agreement
- The date of the agreement, because the cap uses the policy rate at that time
- The interest rate written on your agreement
How to read the answer
The tool shows the maximum rate for that type of credit and date, and whether your rate is within it or above it. Short-term loans such as payday loans are capped as a rate each month, while other types are capped as a rate each year. The result carries the date the figures were checked, with links to the source.
Interest is only one part
The limit applies to interest. Initiation fees, monthly service fees, credit life insurance and collection costs each follow their own rules. A loan with a fair interest rate can still be expensive once fees are added. The loan fee and true cost checker adds those up.
What this is and is not
The checker is a plain comparison with a published formula. It is not a legal ruling. If a rate looks too high, the National Credit Regulator and the credit ombud are where complaints are normally handled. Check the current rules before you act.
Things to watch
- The limit applies to interest. Initiation fees, service fees and insurance have their own rules.
- Only registered credit providers can lend under the Act.
- Check the current maximum before you act.
Add up the fees too with the loan fee and true cost checker. Read the full disclaimer.
Like every tool on MoneyMzansi, this one runs in your browser and nothing you enter is stored or sent.