What does the all-time low repo rate mean for you?

The South African repo rate currently sits at 3,5% – the lowest in over 20 years. How does that affect you? (or, maybe you’re asking what exactly is a repo rate anyway?!)

The repo rate is the rate commercial banks pay to borrow from the South African Reserve Bank. It has a direct impact on the interest rate that we as consumers pay when we borrow money from the banks or financial institutions.

The prime lending rate is also something you would want to keep an eye on.

What is the prime lending rate?

The prime lending rate is based on the repo rate and is what consumers use when borrowing from the bank, based on their risk profile. That’s why it’s so important to check your credit report and understand what is affecting your credit profile, plus how you can improve it.

What does this mean for you?

If you’re borrowing: it’s a great time to check which loan offers you’re eligible for at Moneyshop Bot. A cheaper rate might improve your chances of getting a loan.

If you have existing debt: you might now be in a position to pay your debt off sooner, as you’ll be paying less interest, or you can apply for debt consolidation which combines all of your loans under a single repayment at a lower rate. Try the Moneyshop Bot.

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