There is now a maximum interest rate that 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 that 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. For example, in 2024 the S.A Reserve Bank repo rate was 8.25% per year and the commercial banks’ lending rate was 11.75%.