I
Loans
Initiation Fee
A once-off fee charged by the lender when a new loan is granted. Under the National Credit Act, the maximum initiation fee is capped and is calculated as a percentage of the loan amount, up to a prescribed maximum.
Usage Examples
"The initiation fee of R1,207.50 was added to the loan balance, so I'm actually repaying R51,207.50."
"Compare initiation fees between lenders — they vary and add to your total cost of credit."