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