Cash loan businesses

[Alton Turner Blackwood]

What are the laws regarding this a Cash Loan business?

Someone approached me with this idea. Its a friend of the wife's whom I know fairly well. She says if I can get her the capital she can get the clientele (her colleagues).

Someone in my area does it as well. I found myself making use of him a few times already when I fscked up my budget . He charges 30% interest, 0% if you pay back the same day.

 

[Skywalker42]

Registration

To register a new micro finance company the registration fee is R2 000 plus R250 branch fee per location. Application forms and all relevant regulations can be easily downloaded from the NCR website.
Regulations

Micro-lenders registered with the MFRC operate under the regulations of the Usury Exemption Notice of 1999, which governs money lending transactions in which:

The loan does not exceed R10 000;
The repayment period is not longer than 36 months;
The loan is not recovered from a credit card or cheque account; and
The lending institution is registered with the MFRC

Although the exemption notice does not set a limit on the interest rate that lenders can charge, it obligates the lender to disclose all the charges and monies payable in a written contract. According to council rules, registered lenders must display their MFRC certificate on their premises and the certificate must show the MFRC logo.

More...

On page 24 of this
http://upetd.up.ac.za/thesis/available/etd-03162010-150538/unrestricted/dissertation.pdf
document you will find a table with all the regulation on short term loans.

 

[Alton Turner Blackwood]

Thanks! Very useful info