In terms of the National Credit Act (NCA), all microlenders (as credit providers), must be registered with the National Credit Regulator. The NCA controls the amount of interest that microlenders can charge on money that has been borrowed by a consumer and all aspects of microlending.

Remember the following when making a loan from a microlender:

• A microlender may not charge an up-front fee with the application, in other words, a fee when the person signs the document.
• A microlender may not keep the identify book or bank card or pin number as a collection method.
• Do not sign a document where there are blank spaces where the microlender can fill in information after you leave the office.
• Do not sign a ‘Consent to judgment’ form when you take a loan.
• Find out the benefits of any ‘membership’ fees charged by some microlenders before signing the agreement.