South Africa
Prime Interest Rate
Current rates, full history from 2020, and what every SARB decision means for your bond repayment and vehicle finance.
✓ Fact-checkedUpdated 12 May 2026Sources: SARB MPC statements·SARB rate change history API
Key takeaways
- ✓SA prime rate is 10.25%, effective 21 November 2025. Prime = repo rate (6.75%) + 3.50%.
- ✓The SARB Monetary Policy Committee sets the repo rate six times per year. Every 25bps change moves prime by the same amount.
- ✓South Africa hit a historic low of 7.00% prime in July 2020, peaked at 11.75% in May 2023, and has been cutting since September 2024.
- ✓Each 25bps rate cut saves approximately R167 per month on a R1,000,000 bond over 20 years.
In this guide
- 1Current SA interest ratesPrime 10.25% and repo 6.75% — effective 21 November 2025
- 2What is the prime lending rate?How prime rate works and what "prime plus margin" means for your loan
- 3Rate history chart (2020 – present)Annotated step-line chart of every SARB decision — COVID cuts, peak, and the easing cycle
- 4Full rate change tableAll 21 MPC decisions with exact dates, rates, and basis-point changes
- 5What the rate means for your bondMonthly repayments from R500k to R2m, and how much each 25bps cut saves
- 6What the rate means for vehicle financeCurrent monthly instalments at prime+2% and prime+3% across common price points
- 7When does SARB change rates next?MPC meeting schedule and what drives rate decisions
- 8Frequently asked questions8 most-searched questions about SA interest rates, answered
Current SA interest rates
Prime lending rate
10.25%
Effective 21 November 2025
SARB repo rate
6.75%
Set by SARB MPC
Prime spread above repo
3.50%
Unchanged since the 1980s
The current prime lending rate of 10.25% has been in effect since 21 November 2025, following a 25 basis point cut by the SARB Monetary Policy Committee. South Africa has been in an easing cycle since September 2024, having cut rates six times from the cycle peak of 11.75% reached in May 2023. Since the hiking cycle began in November 2021, the rate has now returned close to pre-pandemic levels.
What is the prime lending rate?
The prime lending rate(often called simply “prime” or the “prime interest rate”) is the benchmark interest rate that South African commercial banks use to price loans to their most creditworthy customers. In practice, most retail lending — home loans, vehicle finance, overdrafts — is quoted as “prime” or “prime plus” a margin that reflects your individual credit risk.
For example, a home loan might be offered at prime + 0.5% (currently 10.75%) for a buyer with an excellent credit record, or at prime + 2% (currently 12.25%) for a buyer with a less-than-perfect credit history. Vehicle finance is typically priced at prime + 2% to prime + 4%.
The prime rate is not set directly by the SARB — it is a commercial bank rate that moves in lockstep with the SARB repo rate. The spread between repo and prime has been exactly 3.50% since at least the early 1980s.
What is the repo rate?
The repo rate (repurchase rate) is the rate at which the South African Reserve Bank lends short-term funds to commercial banks, using government bonds as collateral. When banks need liquidity, they sell bonds to the SARB and agree to repurchase them at the repo rate. This rate directly influences the cost of borrowing throughout the economy.
The SARB's primary mandate is to keep consumer price inflation within the 3–6% target band. When inflation rises, the MPC hikes the repo rate to cool borrowing and spending. When the economy slows and inflation is contained, the MPC cuts to stimulate activity.
SA interest rate history (2020 – present)
The chart below shows every SARB MPC rate decision from January 2020 to the present. The green line tracks the prime rate; the lighter line tracks the repo rate. The two always move in parallel — separated by a fixed 3.50% margin.
SA Prime & Repo Rate — Jan 2020 to Present
Full rate change history
Every SARB MPC decision from January 2020 to the current rate.
| Date | Repo rate | Prime rate |
|---|---|---|
| 21 Nov 2025Current | 6.75% | 10.25% |
| 21 Aug 2025 | 7.00% | 10.50% |
| 20 Mar 2025 | 7.25% | 10.75% |
| 30 Jan 2025 | 7.50% | 11.00% |
| 21 Nov 2024 | 7.75% | 11.25% |
| 19 Sept 2024 | 8.00% | 11.50% |
| 25 May 2023 | 8.25% | 11.75% |
| 30 Mar 2023 | 7.75% | 11.25% |
| 26 Jan 2023 | 7.25% | 10.75% |
| 24 Nov 2022 | 7.00% | 10.50% |
| 22 Sept 2022 | 6.25% | 9.75% |
| 21 Jul 2022 | 5.50% | 9.00% |
| 19 May 2022 | 4.75% | 8.25% |
| 24 Mar 2022 | 4.25% | 7.75% |
| 27 Jan 2022 | 4.00% | 7.50% |
| 18 Nov 2021 | 3.75% | 7.25% |
| 23 Jul 2020 | 3.50% | 7.00% |
| 21 May 2020 | 3.75% | 7.25% |
| 14 Apr 2020 | 4.25% | 7.75% |
| 19 Mar 2020 | 5.25% | 8.75% |
| 16 Jan 2020 | 6.50% | 10.00% |
What the prime rate means for your bond
Most South African home loans are variable-rate products priced at the prime rate (or prime plus a margin). The table below shows current monthly repayments at prime (10.25%) and the saving from each 25bps rate cut, assuming a 20-year bond term.
| Bond amount | Monthly at 10.25% | Save per −25bps |
|---|---|---|
| R500 000 | R4 908/mo | −R84/mo |
| R750 000 | R7 362/mo | −R126/mo |
| R1 000 000 | R9 816/mo | −R167/mo |
| R1 500 000 | R14 725/mo | −R251/mo |
| R2 000 000 | R19 633/mo | −R335/mo |
Assumes bond at prime (10.25%), no margin above/below prime, 20-year term, standard annuity-ordinary repayment calculation. Actual repayments vary based on bank margin and term.
Calculate your exact monthly repayment, total interest, and affordability with our free bond calculator.
What the prime rate means for vehicle finance
Vehicle finance in South Africa is typically offered at prime + 2% to prime + 4%, depending on the lender, loan term, and your credit profile. At the current prime rate of 10.25%, that puts most vehicle finance at 12.25% to 14.25%.
| Vehicle price | At prime+2% (12.25%) |
|---|---|
| R150 000 | R2 952/mo |
| R250 000 | R4 920/mo |
| R400 000 | R7 872/mo |
| R600 000 | R11 808/mo |
Assumes 72-month (6-year) term, no deposit, no balloon payment. Actual rates depend on credit score, deposit amount, and lender.
Get a full vehicle finance breakdown — including the total interest over the loan term — with our vehicle finance calculator.
Vehicle finance calculator →When does SARB change rates next?
The SARB Monetary Policy Committee meets six times per year, with meetings spaced roughly six to eight weeks apart. Each meeting runs over two days, with the decision announced on the second day by the Governor. The schedule for 2026 has not yet been published; the 2025 MPC dates were January, March, May, July, September, and November.
MPC decisions are published on the SARB Monetary Policy page. After each decision, this page is updated to reflect the new rate.
Frequently asked questions
What is South Africa's current prime rate?
South Africa's prime lending rate is 10.25% as of 21 November 2025. This is the rate at which commercial banks lend to their lowest-risk customers. Most home loans and vehicle finance is priced at prime plus a risk margin — typically prime +0% to prime +3% depending on your credit score.
What is the difference between the repo rate and the prime rate?
The repo rate (repurchase rate) is the rate at which the South African Reserve Bank (SARB) lends money to commercial banks. The prime rate is always 3.50% above the repo rate — a margin that has not changed since the 1980s. When the SARB raises or cuts the repo rate, the prime rate moves by the same amount immediately.
Who decides the repo rate in South Africa?
The SARB's Monetary Policy Committee (MPC) decides the repo rate. The MPC meets six times per year — roughly every six to eight weeks. After each two-day meeting, the Governor announces the decision. The primary mandate is to keep inflation within the 3–6% target band. If inflation rises above 6%, the MPC typically hikes; if the economy slows and inflation is contained, it cuts.
How does the prime rate affect my home loan?
Most South African home loans are priced as 'prime plus' a margin. If your bond is at prime (10.25%) and you owe R1,000,000 over 20 years, your monthly repayment is approximately R9 816. A 25bps (0.25%) cut would reduce that by about R167 per month. Over a full 20-year term, that saving compounds significantly.
When did South Africa last change interest rates?
The SARB last changed the repo rate on 21 November 2025, cutting it by 25 basis points to 6.75%. This brought the prime rate from 10.50% down to 10.25%. South Africa has been in an easing cycle since September 2024 — the SARB has cut rates six times since the peak of 8.25% (prime 11.75%) reached in May 2023.
What was the lowest prime rate in South Africa?
The lowest prime rate on record in South Africa's post-apartheid history was 7.00%, reached on 23 July 2020 (repo rate 3.50%). This was the result of five emergency rate cuts made during the COVID-19 pandemic between January and July 2020, totalling 300 basis points. The rate held at this historic low until November 2021 when the hiking cycle began.
What is the prime rate used for in South Africa?
In South Africa, the prime rate is the benchmark for most variable-rate lending products: home loans (bonds), vehicle finance, personal loans, overdrafts, and credit card rates. Bond interest is almost universally quoted as 'prime' or 'prime plus X%'. Vehicle finance is often at prime +2% to prime +4%. When the prime rate rises, your monthly repayment on these variable-rate products increases automatically.
How can I reduce the impact of interest rate changes on my bond?
Three strategies help: (1) Make extra payments whenever rates drop — every rand paid off principal reduces the interest charged in subsequent months. (2) Fix a portion of your bond at a fixed rate to cap your exposure to future hikes. (3) Maintain a large emergency fund so rate hikes don't create cashflow pressure. Over a 20-year bond, even a single additional R1,000 monthly payment in years 1–5 can cut years off the term.
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Data: SARB MPC statements · resbank.co.za — effective 21 November 2025 · See methodology