It is important to understand the different types of credit agreements. Credit agreements are categorised into the following :

Small Agreements
Intermediate Agreements
Large Agreements

Small Agreements
Generally agreements below R15 000 . These are your pay day loans and micro loans. Pawn transaction are also considered small agreements irrespective of the loan size.

Intermediate Agreements
Credit Agreements between R15 000 and R250 000. Examples of intermediate loans : Personal loan, credit card, vehicle finance.

Large Agreements
Credit Agreements above R250 000. Example of large agreements : Home loans, personal loan above R250 000.

It also important to note there are other type of loans , which we have listed below:

Development credit agreements- these are loans between co-operatives and the main aim is not profit.

Public Interest credit – These are agreements set aside for a part of a country that has experienced a natural disaster.

The above credit agreement are set out in the framework of the national credit act as well as the threshold for every category listed above. It is important to understand the different credit agreement and the fees credit providers charge to ensure you are treated fairly and not overcharged in terms of cost and interest.