Question NW3753 to the Minister of Small Business Development

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10 November 2022 - NW3753

Profile picture: Mthenjane, Mr DF

Mthenjane, Mr DF to ask the Minister of Small Business Development

What steps of intervention has the Small Enterprise Finance Agency taken to ensure that micro-lenders were charged fair interest rates by intermediaries in the 2021-22 financial year?”

Reply:

The Small Enterprise Finance Agency (sefa), is required to ensure that all of its clients, that are required to adhere to the National Credit Act (NCA) are compliant and registered throughout the life of any loan from sefa,

All micro finance intermediaries in the sefa micro finance portfolios are registered with the National Credit Regulator (NCR). The NCA regulates all interest and fee charges between the end client and the intermediary client of sefa. All sefa clients are registered with the NCR and their interest rates are therefore regulated by the Act.

sefa as part of its due diligence process and through the life of the loan monitors the clients’ compliance to the act. Additionally, each of the sefa clients must ensure that their NCR certificates remain current throughout their loan period with sefa. The sefa clients therefore needs to provide the NCR with quarterly and annual reports detailing their loans disbursed, their charges and fees as well as other aspects of compliance.

STELLA NDABENI-ABRAHAMS

MINISTER: SMALL BUSINESS DEVELOPMENT

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