- We are strictly working through the cost structure of the NCR and apply this structure to letter.
- The cost set will consist of 3 elements, breakdown of the cost is as follows:
1. INTEREST RATE: REGULATION (42)(1)
5% per month on the first loan and 3% per month on subsequent loans within a calendar year Normal interest = 3% per month (36 Annually)
2. INITIATION FEE : REGULATION (42) (2)
(a) R165.00 per Credit Agreement, Plus 10% of the amount in excess of R1000.00
(b) But never to exceed R1050.00
3. SERVICE FEE PRO-RATA : REGULATION (44)
(a) Service fee covers the cost of administrating the Credit Agreement.
(b) Maximum Monthly Service Fee is R60.00 in terms of Section (105) (1).
(c) A Service fee must be charged for a calendar month in which it is due and payable.
(d) A Service fee must be on a Pro-Rata basis where the Credit Agreement was concluded during the course of that calendar month.
4. Pay and Clear
(a) If a debtor applies for a loan and is banking with or not the same Bank as Pronto Loans, a Pay and Clear Fee of R45.00 per transaction will be added to the cost of debtor at re-payment.
5. We will Pay the employer a R50 Admin Fee per Successful Application.