There is now a maximum interest rate which credit providers can charge, depending on the type of credit and when the credit was granted. The rate in most cases is based on a formula which is dependent on the South African Reserve Bank repurchase (repo) rate at the time that the credit was granted. The repo rate is regularly adjusted over an 18-month cycle, so check with the Reserve Bank for the repo rate at the time that the agreement was signed. Currently the S.A Reserve Bank repo rate is 5.75% per year and the commercial banks’ lending rate is 9.25%.