REGISTRATION AS A CREDIT PROVIDER
REGISTRATION AS A CREDIT PROVIDER
Requirements for registering as a credit provider as per Section 40, 41, and regulation 4 of the National Credit Amendment Act, 19 of 2014:
· A person must apply for registration as a credit provider if that person is-
o The party who supplies goods or services under a discount transaction or instalment sale agreement;
o The party who advances money or credit under a pawn transaction;
o The party who extends credit under a credit facility;
o The mortgagee under a mortgage agreement;
o The lender under a secured loan;
o The lessor under a lease;
o The party to whom an assurance or promise is made under a credit guarantee;
o The party who advances money or credit to another under any other credit agreement; or
o Any other person who acquires the rights of a credit provider under a credit agreement after it has been entered into.
· A juristic person or a natural person may apply for registration as a credit provider.
· A person who is required 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.
Documents and information required for the application for Registration as a Credit Provider in terms of Section 40 and 41 of the National Credit Amendment Act, 19 of 2014:
Please note that your application will not be processed and/or considered without the following:
1. Completed and signed application form (Form 2)
2. Companies and Intellectual Property Commission (CIPC) registration document or other official legal registration document.
3. Copy of the share certificate(s) if applicant is company. Where the majority shareholder is a natural person, please submit the following documentation:
§ Certified copy of the identity document.
§ Part 7 (disqualification of natural person form)
§ Criminal clearance certificate not older than six (6) months)
4. Certified copies of ID/Passports of all members/directors/shareholders/trustees/partners/sole proprietors. 5. Resolution if applicant is a juristic person (see attached specimen). (please create a link)
6. A Criminal Clearance Certificate for all the members/directors/shareholders/trustees/partners or sole proprietors issued by the South African Police Services (SAPS) or other service providers listed in the annexure attached hereto marked A. The clearance certificate must not be older than six (6) months. (please create a link)
7. A signed and stamped letter from the bank confirming the applicant’s banking details or a copy of a cancelled blank cheque or a stamped bank statement not older than six (6) months.
8. Proof of registration with the South African Revenue Services (SARS).
9. Proof of payment of the registration fees:
§ Non-refundable application fee of R1910
§ Branch fee of R950 per location or premises at or from which the applicant conducts registered activities.
§ Initial registration fee as indicated in the table below for each sub-category of registrant
Fee Category Description R800
Category 1 Total principal debt equal or greater than R15 billion R330 000
Category 2 Total principal debt equal or greater than R5 billion, but less than R15 billion R190 000 plus 0,001% of the amount by which the total principal debt exceeds R5 billion
Category 3 Total principal debt equal or greater than R1 billion, but less than R5 billion R70 000 plus 0,003% of the amount by which the total principal debt exceeds R1 billion
Category 4 Total principal debt equal or greater than R100 million, but less than R1 billion R16 000 plus 0,005% of the amount by which the total principal debt exceeds R100 million
Category 5 Total principal debt equal or greater than R5 million, but less than R100 million R7 000 plus 0,01% of the amount by which the total principal debt exceeds R5 million
Category 6 Total principal debt equal or greater than R1 million, but less than R5 million R2 500 plus 0,1% of the amount by which the total principal debt exceeds R1 million
Category 7 Total principal debt equal or greater than R500 000, but less than R1 million R2 000
Category 8 Total principal debt equal or greater than R250 000, but less than R500 000 R1 500
Category 9 Total principal debt less than R250 000 R1 000
Providers of developmental credit (Section 41)
A registered credit provider, or a credit provider who has applied to be registered in terms of section 40, may apply for supplementary registration as a credit provider in respect of developmental credit agreements if the credit provider-
· Is a close corporation, company, credit co-operative, trust, statutory entity, mutual bank or bank.
· The National Credit Regulator may grant supplementary registration to a credit provider only if it concludes that the credit provider has:
o Sufficient human, financial and operational resources to enable it to function efficiently and to effectively carry out its function in terms of the Act, or presents to the National Credit Regulator a credible plan to acquire or develop those resources, and
o Adequate administrative procedures and safeguard to justify the application of statutory exceptions from the Act, or presents to the National Credit regulator a credible plan to credible plan to develop those procedures and safeguards before entering into any developmental credit agreement.
Over and above the requirements set out in Section 41 of the Act, providers of developmental credit are required to submit a motivation outlining the applicant’s ability to provide developmental credit (link to guidelines for developmental credit provider
