Online Credit Policy for Local Finance
Last Updated: 22 June 2026
1. Introduction and Purpose
Local Finance (“we”, “us”, “our”) is a registered microcredit provider (NCR registration number: [Insert NCR Number]) committed to providing accessible, responsible, and transparent credit to our community in the Winelands area. This Online Credit Policy (“Policy”) governs all credit applications and agreements initiated through our website or online platforms.
This Policy reflects our commitment to:
Responsible Lending: Ensuring that every loan we provide is affordable and does not lead to over-indebtedness.
Regulatory Compliance: Adhering strictly to the National Credit Act (NCA), the Financial Intelligence Centre Act (FICA), and all applicable regulations.
Consumer Protection: Treating all clients fairly and transparently, and protecting their personal information as required by the Protection of Personal Information Act (POPIA).
All credit applications are subject to our credit assessment process and approval criteria. By applying for credit online, you agree to the terms set out in this Policy.
2. Our Loan Products
We offer the following unsecured loan products through our online platform:
Short-Term Loans: Repayment period of 1 month. Designed for urgent, short-term expenses.
Long-Term Loans: Repayment period of 2 to 6 months. Designed for more manageable, longer-term financial needs.
Loan amounts range from R100 to R8,000, subject to our affordability assessment and your credit profile.
3. Eligibility Criteria
To qualify for a loan with Local Finance, you must meet the following criteria:
Be a South African citizen or permanent resident with a valid South African ID.
Be at least 18 years of age.
Be permanently employed with a monthly, fortnightly, or weekly pay structure, or be a government pensioner, SASSA old age beneficiary, or permanent disability recipient.
Reside in the Winelands area (Paarl, Wellington, and surrounding towns).
Have a valid bank account and a bank card.
Provide all required documentation as listed below.
4. Required Documentation
To complete your online application, you must provide the following documents:
Valid South African ID (copy or photo).
Latest Payslip / Proof of Pension / SASSA details (not older than 3 months).
3 Months’ Bank Statements (to verify income and expenses).
Proof of Address (not older than 3 months).
Relevant Contact Numbers (mobile and work).
Bank Card (for verification and payment processing).
Failure to provide complete and accurate documentation will delay your application.
5. Credit Assessment and Affordability
All loan applications are subject to a thorough credit assessment. South African law requires two distinct assessments for every credit application:
5.1. Credit Risk Assessment
We assess the likelihood that you will repay the loan. This is a prudential assessment that protects us and the broader financial system. It includes:
Obtaining your credit report from a registered credit bureau (e.g., Experian, TransUnion).
Evaluating your credit history, payment behavior, and existing debt obligations.
Using this information to determine your probability of default.
5.2. Affordability Assessment
This is a statutory consumer protection requirement under the National Credit Act. It assesses whether you can repay the loan instalments without becoming over-indebted. This assessment is based on verified financial facts, including:
Your verifiable monthly income.
Your essential living expenses.
Your existing debt obligations.
The affordability assessment is factual and evidence-based. A good credit score alone does not mean you will pass the affordability assessment.
We will not grant a loan if the affordability assessment shows you cannot afford the repayments, regardless of your credit risk profile.
6. Fees, Interest, and Charges
Our loan costs are strictly in compliance with the National Credit Act, Chapter 5. All costs will be clearly disclosed to you in the pre-agreement disclosure and in your loan agreement before you accept the offer.
The total cost of credit includes:
Initiation Fee: A once-off fee charged for processing your application.
Service Fee: A monthly fee for administering your loan.
Interest: Calculated on the outstanding balance, charged monthly in arrears.
Key Principles:
We have a fixed interest rate and contract cost, meaning your monthly repayment will remain the same for the entire loan term.
A good credit record is essential. We will report your payment history (both positive and negative) to credit bureaus to help you build a formal credit profile.
No hidden fees: All charges will be transparently disclosed and explained.
7. Privacy and Data Protection
We collect, process, and store your personal information in accordance with the Protection of Personal Information Act (POPIA). By applying for credit, you consent to:
Our collection and use of your personal information for the purposes of the credit application and subsequent loan management.
Our sharing of your information with credit bureaus, our partners (e.g., Aspis for insurance), and other service providers where necessary.
We will not retain your bank card or PIN. It is illegal and against our lending policy to hold such items.
We are also a registered “accountable institution” under FICA and conduct necessary due diligence, including Know Your Customer (KYC) checks, to prevent fraud and money laundering.
8. Your Rights as a Consumer
As a consumer under the NCA, you have the following rights:
Right to Pre-agreement Disclosure: You have the right to receive a clear breakdown of all costs and terms before signing the loan agreement.
Right to Cooling-off: You have the right to cancel the credit agreement within 5 business days of signing it, without penalty.
Right to Early Settlement: You may settle your debt in full at any time before the end of the agreement. We will calculate the settlement amount according to the NCA regulations.
Right to Statements: You have the right to receive regular statements of account showing your outstanding balance, interest, and fees.
Right to Dispute: You have the right to dispute our decision regarding your loan application. You may also lodge a complaint with the National Credit Regulator (NCR) if you believe we have not complied with the law.
9. Consequences of Non-Payment
If you fail to make your repayments on time, we will take the following steps:
Late Payment Notices: We will contact you to arrange a payment plan.
Reporting to Credit Bureaus: A default will be recorded on your credit profile, negatively affecting your credit score.
Debt Collection: We may instruct a registered debt collection agency to recover the outstanding amount.
Legal Action: We reserve the right to take legal action to recover the debt, in accordance with the law.
Important: Missing payments extends the loan period, increases the total cost of the loan, and lowers your credit score.
10. Responsible Use of Credit
We encourage all our clients to use credit responsibly:
Understand Your Need: Have a clear reason for taking a loan and avoid using credit for unnecessary expenses.
Create a Budget: Before applying, understand your income, expenses, and how the loan repayment fits into your budget.
Ask Questions: If you do not understand any part of the loan agreement, please ask us.
Avoid Over-indebtedness: Do not take on more credit than you can comfortably afford. We are committed to helping you avoid this situation.
11. Contact Us
If you have any questions about this Online Credit Policy or your loan application, please contact us:
Local Finance
Paarl Branch: Shop 4, Castle St, Lemoenkloof, Paarl
Wellington Branch: 1b Malherbe Str, Wellington
Phone: 081 717 1435 or 081 3870 985
Email: sales@localfinance.co.za
National Credit Regulator (NCR)
Website: https://www.ncr.org.za/
Phone: 0860 627 627
Effective Date: 22 June 2026