Letsatsi Finance: rates and fees
Letsatsi Finance and Loan (Pty) Ltd is bound by the National Credit Act caps for the credit it grants. This page sets those caps beside what Letsatsi Finance publishes, and works a full example so you have a figure to hold your own quote up against. It is not a quote and not an offer.
What the National Credit Act allows a lender to charge
Maximums for short-term credit under the National Credit Act 34 of 2005. A registered lender may charge less — never more.
| Charge | Legal maximum | How it works |
|---|---|---|
| Interest — first loan | 5% per month | Applies to your first short-term loan in a calendar year. |
| Interest — repeat loan | 3% per month | Applies to further short-term loans taken in the same calendar year. |
| Initiation fee | R165 + 10% above R1 000, capped at R1 050 | Charged once, on the amount you borrow. Excludes VAT. |
| Service fee | R60 per month | Charged monthly for the life of the loan. Excludes VAT. |
| VAT | 15% on the fees | Added to the initiation and service fees — not to interest. |
Fee caps are published excluding VAT. With 15% VAT a R1 050 initiation fee costs you R1 207,50 and a R60 service fee costs R69 a month. Always compare the VAT-inclusive figure on your pre-agreement quote.
What R3 000 over 3 months actually costs
At the NCA maximum for a first short-term loan (5% a month). An illustration, not a quote.
| Line | Amount |
|---|---|
| Amount borrowed | R3 000 |
| Interest (5% × 3 months) | R450 |
| Initiation fee | R365 |
| Service fee (R60 × 3) | R180 |
| VAT on fees (15%) | R82 |
| Total you repay | R4 077 |
| Monthly instalment | R1 359 |
Cost of credit: R1 077 on R3 000 borrowed. Figures are calculated at the statutory maximum — your own quote may be cheaper, and must be shown to you in full before you sign.
How to use this against your quote
If the total cost of credit on your Letsatsi Finance quote is higher than the worked example above for the same amount and term, ask the lender to explain the difference before you sign. Credit life insurance and optional extras are the usual legitimate reasons; anything unexplained is worth querying with the National Credit Regulator.
Settling early
You may settle a credit agreement at any time. On short-term credit you owe interest only up to the settlement date, so paying early genuinely reduces the cost rather than just bringing it forward.
Ask for a written settlement quote rather than estimating it — the figure depends on the exact date the payment reflects, and a guess that falls short leaves the agreement open.
Related
Sources and last checked
- National Credit Act 34 of 2005 and its regulations — Government, as at 10 August 2026.
- National Credit Regulator — register of credit providers — Regulator, as at 10 August 2026.
Page last checked 10 August 2026. Statutory caps and lender terms change — confirm anything you intend to rely on with the provider or the National Credit Regulator. Found something wrong? Tell us and we will correct it.