Interest rate on lease Agreement

[neliusmit]

I have a clause in a lease agreement where the Lessee should pay 21% interest if rent is in arrears. May I charge this rate? Where can I obtain information with regards to what I may charge

[AmithS]

I believe the NCA dictates interest amount chargeable.

Not 100% sure, I think its prime + 2% - 5%

[Andromeda]

It is incidental credit and last I looked it was limited to 24% per annum, or 2% per month.

[AmithS]

Andromeda is correct, just googled now...

The Minister, in terms of Section 103 of the Act, prescribes the interest rates which can be charged in terms of an incidental credit agreement. The current interest rate is 2% per month which accumulates to 24% per annum which can be charged on default payments within an incidental credit agreement.