The Reserve Bank raised the repo rate by 0.25 percentage points to 7.25% on 23 September 2026, taking the prime lending rate to 10.75%. If your personal loan has a variable interest rate, your monthly instalment goes up. A fixed-rate loan does not change.
What changed
| Measure | Now |
|---|---|
| Repo rate | 7.25% (up 0.25 percentage points) |
| Prime lending rate | 10.75% |
| Decision date | 23 September 2026 |
| Monetary Policy Committee vote | Unanimous |
Governor Lesetja Kganyago pointed to the escalating Middle East conflict and reduced oil flows through the Strait of Hormuz, calling it “a large, negative and persistent global supply shock”. The Reserve Bank expects headline inflation above 5% later this year and early next year, mainly because of higher fuel prices.
RMB economist Isaah Mhlanga expects the next hike around May next year. That is one analyst’s view, not a Reserve Bank forecast.
What it means for your loan
Only variable-rate credit moves with the repo rate. Check your credit agreement to see which type you have, or ask your lender.
The table below shows what a 0.25 percentage point increase does to a personal loan. The 20% rate is an example for the calculation, not a quote. Your own rate depends on your lender and your credit profile.
| Loan | Instalment at 20% | Instalment at 20.25% | Extra per month |
|---|---|---|---|
| R30,000 over 36 months | R1,114.91 | R1,118.73 | R3.82 |
| R100,000 over 60 months | R2,649.39 | R2,663.32 | R13.93 |
For comparison, the same increase adds about R168 a month to a R1,000,000 bond. A bigger debt, a longer term and a higher rate all mean a bigger monthly increase.
Arcadia Finance states that the interest on unsecured loans is capped at the repo rate plus 21%, which was about 28% a year in early 2025. Check the current cap with the National Credit Regulator before you quote it to readers.
What to do now
- Find out if your rate is fixed or variable. This tells you whether your instalment will change.
- Ask your lender for the new instalment and update your monthly budget.
- Plan for another increase. Analysts expect rates to stay high while fuel prices push inflation up.
- Think twice before taking a new loan. Compare the total cost, including initiation and monthly fees, and use only lenders registered with the National Credit Regulator.
- Get help early. If repayments are becoming hard, speak to your lender or a registered debt counsellor before you miss a payment.