P
Banking
Prime Lending Rate
The benchmark interest rate that South African banks use as a base for pricing loans. Set at a margin above the repo rate (currently repo + 3.5%), the prime rate directly affects the interest you pay on variable-rate loans, home loans, and overdrafts.
Usage Examples
"When the Reserve Bank cut the repo rate by 0.25%, the prime lending rate dropped from 11.75% to 11.50%."
"His personal loan was priced at prime plus 7%, meaning he paid 18.5% per year in interest."
"The prime lending rate affects millions of South African borrowers with variable-rate home loans."