How to Register as a Credit Provider

On 11 May 2016, a new threshold of R 0 (nil) was published and from 11 November 2016, 6 months after the publication of the new R 0 (nil) threshold, all credit providers (irrespective of the number of credit agreements) should register as credit providers with the NCR. This means that any person who extends credit that does not form part of an incidental credit agreement is required to register as a credit provider with the National Credit Regulator.

The National Credit Act requires the Regulator to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low-income persons, and remote, isolated or low-density communities. The NCR is also tasked with the registration of credit providers, credit bureaux, and debt counsellors; and with the enforcement of compliance with the Act. It’s a requirement of any party or juristic person who advances money and or who extends credit to register with the NCR.

How to become a credit provider

The natural or juristic person can establish whether they need to register as a credit provider in terms of the Act. If you need to register as a credit provider you can follow these steps to guide you through your application with the National Credit Regulator for registration of a company as a credit provider in terms of Section 40 and 41 of the Act:


  1. Complete the NCR Application Form
  2. Have a company registration or be a sole proprietor
  3. Provide a copy of the share certificate/s if the application is a company. Submit the following:
    1. Certified copy of ID
    2. Part 7 (disqualification of natural person form)
    3. Police clearance certificate (no older than 6 months)
  4. Provide certified copies of ID/Passports of all members/directors/trustees/partners/sole proprietors
  5. Complete & sign resolution document if the applicant is a juristic person
  6. Provide a police clearance certificate for all members/directors/trustees/partners/sole proprietors issued by the South Africa Police Services (SAPS).
  7. Proof of payment of the registration fee
    1. Non-Refundable application fee of R 500
    2. Branch fee of R 250 per location or premises where you will be operating from
    3. Registration Fee of R 1500
  8. Letter from the bank confirming the applicant’s banking details or a copy of a cancelled blank check
  9. Proof of registration with the South African Receiver or Revenue Services (SARS)


All documentation must be delivered to: 127 – 15th Road, Randjespark, Midrand for the attention of the National Credit Regulator. In the alternative, the documentation may be posted to PO Box 209, Halfway House, 1685.


The process can take between 9 and 12 weeks to be completed, pending the provision of accurate information provided by the natural or juristic person in their application.

What happens if you don’t register as a national credit provider?

If a person fails to register in circumstances where credit is provided as provided by the Act both the capital and the interest may be at risk and the entire agreement can be found to be void. We strongly suggest that you consider whether you’re regarded as a credit provider to avoid situations where you could lose your money.


Chapter 3, Section 40(3), (4) and (5) of the Act regulates the sanctions that apply to an entity that is required to register as a national credit provider but have not done so. These sections of the Act state:


  • Section 40 (3): “A person who is required in terms of subsection (1) to be registered as a credit provider, but who is not so registered, must not offer, make available or extend credit, enter into a credit agreement or agree to do any of those things.”
  • Section 40(4): “A credit agreement entered into by a credit provider who is required to be registered in terms of subsection (1) but who is not so registered is an unlawful agreement and void to the extent provided for in section 89.”

Exclusions (Section 4)

Certain exclusions apply to the requirement to register as a credit provider. Requirements to register as a credit provider is excluded where the consumers are juristic persons (together with all its related juristic persons) with an asset value or annual turnover of at least R1 000 000.00 (one million Rand) or where the juristic person concludes a large credit agreement with the credit provider, with a principal debt of at least R250 000.00 (two hundred and fifty thousand Rand).

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