Credit Agreement Objectives

Back to National Credit Act

Objectives:

  • The creation of a framework where competition and transparency is promoted
  • Equal rights and protection of rights to consumers
  • Measures to avoid over-indebtedness
  • Avoidance of reckless lending
  • Regulatory framework for credit bureaus, credit providers and debt counselors
  • Regulatory formal complaint procedures for protection and compensation

Credit Agreements

The following are examples of the three types of credit agreements:

Credit FacilityCredit TransactionCredit Guarantee
Small
Up to R15,000
  • Overdrafts
  • Credit cards
  • Retail store cards
  • Pawn transaction
  • Classic loan
  • 3rd party surety
Intermediate
R15,001 to R249,999
  • Gold and platinum cards
  • Premier loan
  • Vehicle finance
  • 3rd party surety
Large
R250,000 and above
  • Business overdraft
  • Mortgages always considered large irrespective of amount
  • 3rd party surety (Limited)

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