These articles are general information and not financial, legal or tax advice. Rates, fees and rules change, so confirm current figures with the lender, the NCR or SARS before you act.
The South African Reserve Bank’s Monetary Policy Committee raised the repo rate by 25 basis points to 7.25%, effective 25 September 2026. If you have a loan or account linked to the prime lending rate, your repayments are likely to go up.
Who is affected?
- Home loans are almost always linked to prime, so your instalment rises soon after the change.
- Vehicle finance and personal loans with a variable rate also move up. Fixed-rate loans do not change until you refinance.
- Credit cards and overdrafts usually follow prime, so revolving balances get more expensive.
How much more will it cost?
With the repo rate at 7.25%, prime is typically 3.5 percentage points higher at 10.75%. As a rough guide, a 0.25 percentage point increase adds about R170 a month to a R1 million, 20-year home loan. Smaller loans rise by proportionally less.
What you can do now
- Check your latest statement or ask your lender for your new instalment amount.
- Keep paying the old instalment if you can. The extra goes straight to your capital.
- Pay off your most expensive debt first, usually credit cards and short-term loans.
- Ask whether you can switch to a fixed rate, or shop around for a better deal.
General information only, not financial advice. Check your own credit agreement for how your rate is set.
Before you take on any new credit, compare the full cost of at least three registered lenders.