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Question of the Day: Which South African brand or product do you wish would make a return?
Highest interest rate banks can charge
- Thread starter Mvu
- Start date
Table A: Maximum Prescribed Interest Rates
Sub-sector
Maximum Prescribed Interest Rate
Mortgage agreements
[(RR x 2.2) + 5%] per year
Credit facilities
[(RR x 2.2) + 10%] per year
Unsecured credit transactions
[(RR x 2.2) + 20%] per year
Developmental credit agreements
for the development of a small business
[(RR x 2.2) + 20%] per year
for low income housing (unsecured)
[(RR x 2.2) + 20%] per year
Short term credit transactions
5% per month
Other credit agreements
[(RR x 2.2) + 10%] per year
Incidental credit agreements
2% per month
Where,
(a) RR indicates the reference rate, being the ruling SA Reserve Bank Repurchase Rate,
(b) The interest rate on short term credit transactions must be disclosed as a monthly interest rate, in such disclosure as is required by the Act and these regulations.
Taken from: http://www.ncr.org.za/the_act/13. Int rates (reg.chap 5).pdf
Current repo rate is 5.75%
Sub-sector
Maximum Prescribed Interest Rate
Mortgage agreements
[(RR x 2.2) + 5%] per year
Credit facilities
[(RR x 2.2) + 10%] per year
Unsecured credit transactions
[(RR x 2.2) + 20%] per year
Developmental credit agreements
for the development of a small business
[(RR x 2.2) + 20%] per year
for low income housing (unsecured)
[(RR x 2.2) + 20%] per year
Short term credit transactions
5% per month
Other credit agreements
[(RR x 2.2) + 10%] per year
Incidental credit agreements
2% per month
Where,
(a) RR indicates the reference rate, being the ruling SA Reserve Bank Repurchase Rate,
(b) The interest rate on short term credit transactions must be disclosed as a monthly interest rate, in such disclosure as is required by the Act and these regulations.
Taken from: http://www.ncr.org.za/the_act/13. Int rates (reg.chap 5).pdf
Current repo rate is 5.75%
Sinbad
Honorary Master
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Check out what it's like in the UK:
http://www.dailymail.co.uk/news/art...-600-rise-leads-calls-tighter-regulation.html
http://www.dailymail.co.uk/news/art...-600-rise-leads-calls-tighter-regulation.html
supersunbird
Honorary Master
Highest according to info posted would be 31.5%
Repo rate is currenly 5.75% so 2.2 times that is 12.65%, plus 20% for unsecured credit transactions, you end up with 32.65%.
However it seems like Short term credit transactions can go up to 5% per month which would indicate a nominal of 60% per year.
supersunbird
Honorary Master
Doh! I only timed by 2, not 2.2. You are right.