Prime Rate in South Africa Today
Personal finance
Rates checked against the South African Reserve Bank (SARB) on 6 November 2026. Every figure on this page comes from SARB or the National Credit Regulations, linked below.
By Morné Kruger, Founder & SA Tax Editor. Last reviewed 2026-11-06.
See what it means for your own loan in our bond calculator or loan calculator.
What is the prime rate?
The prime lending rate is a reference rate that South African banks use to price loans such as home loans, vehicle finance and credit cards.4 When your bank quotes "prime + 1" or "prime − 0.5", it means your rate moves up and down with prime, at that fixed distance from it.
Prime vs the repo rate (SARB policy rate)
The SARB's Monetary Policy Committee (MPC) sets the policy rate. Most people still call it the repo rate. The SARB now calls it the "SARB policy rate" (SPR) and says it is "commonly known as the repurchase (repo) rate".5 The SARB explains that the name "repo rate" fitted the way it used to manage money-market liquidity, which it changed in 2022.45 It's the same rate either way.
| Rate | Today | Who sets it |
|---|---|---|
| SARB policy rate (repo rate) | 7.25% | SARB Monetary Policy Committee |
| Prime lending rate | 10.75% | Policy rate + 3.5 percentage points |
| Your loan rate | Prime ± your margin | Your lender, based on your risk and their costs |
Both rates effective 25 September 2026.123
Why prime is always 3.5 points above repo
Prime has been set at a fixed spread above the policy rate, currently 350 basis points (3.5 percentage points), since 2001.4 The SARB says this spread is not a regulatory prescription.45 Every change in SARB's own list since November 2018 keeps that 3.5-point gap (see the history table below).2
Prime is a reference rate, not your rate
Banks don't simply lend at prime. The SARB says the rate a bank actually charges depends on things like its funding costs, the client's risk and its own risk appetite, and prime is mainly a reference point that the margin is added to or taken from.4 Two people with the same bank can be on different margins.
- SARB MPC sets the policy (repo) rate: 7.25%
- Prime = policy rate + 3.5 points: 10.75%
- Your rate = prime ± your margin: e.g. prime + 1 = 11.75%
Illustration: "prime + 1" is an example margin, not an offer or a typical rate.
Prime rate history (2018 to 2026)
The SARB lists the dates when prime and the policy rate changed. MPC meetings that left rates unchanged don't appear. The table starts in November 2018.2
| Effective date | Policy (repo) rate | Prime | Change |
|---|---|---|---|
| 25 Sep 2026 | 7.25% | 10.75% | +0.25 |
| 29 May 2026 | 7.00% | 10.50% | +0.25 |
| 21 Nov 2025 | 6.75% | 10.25% | −0.25 |
| 1 Aug 2025 | 7.00% | 10.50% | −0.25 |
| 30 May 2025 | 7.25% | 10.75% | −0.25 |
| 31 Jan 2025 | 7.50% | 11.00% | −0.25 |
| 22 Nov 2024 | 7.75% | 11.25% | −0.25 |
| 20 Sep 2024 | 8.00% | 11.50% | −0.25 |
Show older rates
| Effective date | Policy (repo) rate | Prime | Change |
|---|---|---|---|
| 26 May 2023 | 8.25% | 11.75% | +0.50 |
| 31 Mar 2023 | 7.75% | 11.25% | +0.50 |
| 27 Jan 2023 | 7.25% | 10.75% | +0.25 |
| 25 Nov 2022 | 7.00% | 10.50% | +0.75 |
| 23 Sep 2022 | 6.25% | 9.75% | +0.75 |
| 22 Jul 2022 | 5.50% | 9.00% | +0.75 |
| 20 May 2022 | 4.75% | 8.25% | +0.50 |
| 25 Mar 2022 | 4.25% | 7.75% | +0.25 |
| 28 Jan 2022 | 4.00% | 7.50% | +0.25 |
| 19 Nov 2021 | 3.75% | 7.25% | +0.25 |
| 24 Jul 2020 | 3.50% | 7.00% | −0.25 |
| 22 May 2020 | 3.75% | 7.25% | −0.50 |
| 15 Apr 2020 | 4.25% | 7.75% | −1.00 |
| 20 Mar 2020 | 5.25% | 8.75% | −1.00 |
| 17 Jan 2020 | 6.25% | 9.75% | −0.25 |
| 19 Jul 2019 | 6.50% | 10.00% | −0.25 |
| 23 Nov 2018 | 6.75% | 10.25% | +0.25 |
Change is in percentage points, worked out from consecutive rows.
The highest prime in this period was 11.75%, from 26 May 2023 until it dropped to 11.50% on 20 September 2024. The lowest was 7.00%, from 24 July 2020 to 19 November 2021.2
When does the prime rate change?
Prime changes when the MPC changes the policy rate. The MPC announces its decision on the meeting day, and SARB states the date the new rate takes effect. In September 2026, for example, the committee "decided to raise the policy rate by 25 basis points, to 7.25%, effective from 25 September".3
Upcoming SARB MPC announcements (SARB's published list):3
| Year | Dates |
|---|---|
| 2026 | 19 November |
| 2027 | 28 January, 18 March, 27 May, 22 July, 29 September, 25 November |
We don't forecast rate decisions. In September 2026 the SARB said its projection model "has the policy rate broadly stable through the remainder of this year", and that "this rate path remains a broad policy guide".3
What a 0.25% change does to your repayments
A 0.25 percentage point move in prime moves every prime-linked rate by the same amount. Here's what the latest increase (10.50% to 10.75%) did to two example loans, using the standard repayment formula:
| Example loan | Monthly at 10.50% | Monthly at 10.75% | Difference |
|---|---|---|---|
| R1 000 000 bond over 20 years | R9 983.80 | R10 152.29 | +R168.49 |
| R300 000 car loan over 72 months | R5 633.69 | R5 671.88 | +R38.19 |
Illustration only: loans taken at prime with no margin, fees or balloon. Your lender's figures will differ.
Between R1 000 and R100 000 000.
Between 12 and 360 months.
Between −5.00 and +10.00.
Monthly instalment at 10.75%: R10 152.29
| Rate | Monthly instalment | Difference vs current |
|---|---|---|
| 10.25% (−0.50) | R9 816.43 | −R335.86 |
| 10.50% (−0.25) | R9 983.80 | −R168.49 |
| 11.00% (+0.25) | R10 321.88 | +R169.59 |
| 11.25% (+0.50) | R10 492.56 | +R340.27 |
Illustration only. Excludes fees, insurance and balloon payments. Your lender's figures will differ.
Work out your own numbers with the bond calculator, the loan calculator or the compound interest calculator.
Is the prime rate being scrapped?
Not yet, and nothing has been decided. In February 2026 the SARB published a consultation paper saying it "prefers that the use of the PLR [prime lending rate] as a reference rate ceases", with the SARB policy rate as the replacement.45 Comments closed on 20 March 2026.5
Key points from the paper, which is a proposal only:45
- Actual loan pricing "would remain unchanged". A loan at prime + 1 would be restated against the policy rate, not repriced.
- Any active transition would start "in 2027 at the earliest", after the Jibar (Johannesburg Interbank Average Rate) transition.
- Prime is used in retail mortgage loans, vehicle finance and consumer credit cards.
As at 31 October 2026 we found no final SARB decision or cessation date. We'll update this page if that changes.
Prime and the National Credit Act caps
The maximum interest rates in the National Credit Regulations are set off the repo rate, not off prime. Regulation 42 sets each cap as "RR + x%", and RR is "the ruling SA Reserve Bank Repurchase Rate".8 The figures in Table A come from the regulations as gazetted.6 Vehicle finance generally falls under "other credit agreements".7 For example:
| Credit type | Cap (regulation 42) | At a 7.25% repo rate |
|---|---|---|
| Mortgage agreements | RR + 12% per year | 19.25% |
| Other credit agreements (vehicle finance generally falls here) | RR + 17% per year | 24.25% |
The right-hand column is our arithmetic from the regulation and the current repo rate.
FAQ
What is the prime rate in South Africa today?
What is the repo rate (SARB policy rate) today?
What is the difference between prime and repo?
Why is prime 3.5% above repo?
When is the next interest rate announcement?
When did prime last change?
Is the prime rate being abolished?
Is my bond or car loan rate the same as prime?
What was the prime rate in 2023?
Related
Sources
- South African Reserve Bank, Current market rates (prime lending rate and SARB policy rate), observation 6 November 2026. https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics/current-market-rates
- South African Reserve Bank, Selected historical rates: dates of change in the prime lending rate and in the SARB policy rate. https://www.resbank.co.za/en/home/what-we-do/statistics/key-statistics/selected-historical-rates
- South African Reserve Bank, Statement of the Monetary Policy Committee, September 2026. https://www.resbank.co.za/en/home/publications/publication-detail-pages/statements/monetary-policy-statements/2026/september
- South African Reserve Bank, Consultation paper on the cessation of the prime lending rate, February 2026. https://www.resbank.co.za/content/dam/sarb/publications/other-publications/2026/prime/prime-consultation-paper.pdf
- South African Reserve Bank, media release: Consultation paper on the cessation of the prime lending rate, 16 February 2026. https://www.resbank.co.za/en/home/publications/publication-detail-pages/media-releases/2026/prime-cessation-paper
- National Credit Regulations, regulation 42 (GN R1080, Government Gazette 39379, 6 November 2015). https://www.gov.za/sites/default/files/gcis_document/201511/39379gon1080.pdf
- National Credit Regulator, Consumer Credit Market Report Q1 2025. https://www.ncr.org.za/documents/CCMR/CCMR_Q1%202025.pdf
- National Credit Regulations, regulation 42(1)(a), consolidated text (Acts Online). https://www.acts.co.za/national-credit/r489_42__maximum_prescribed_interest_and_initiation_fees
This page explains published rates. It isn't financial or credit advice and doesn't predict rate decisions. For your own loan, check your agreement or speak to your lender or a registered adviser.