The National Credit Act

Back to National Credit Act

The National Credit Act applies to all credit agreements where:

  • Parties are dealing at arm’s length
  • The agreement will be effective in South Africa

It does not apply if:

1. One of the contracting parties is:

  • The State
  • An organ of the State
  • A juristic person:
    • Company/cc/Trust
    • With an asset value or annual turnover in excess of R1 million
    • The credit provider is:
    • The Reserve Bank
    • Located outside of the Republic

2. The credit provider is:

  • The Reserve Bank
  • Located outside of the Republic

Credit Life Cycle

The various stages that clients may go though when they require some form of credit:

  1. Desire Credit
  2. Apply for credit
  3. Verification of credit worthiness
  4. Approval/Decline of credit extension
  5. Settlement or default of credit obligations

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