Loan sharks and mashonisas: how to tell them from a registered lender

“Legit” in South Africa does not mean quick or easy. It means four things:

1. Registered. A credit provider that lends above the threshold set under the National Credit Act must be registered with the National Credit Regulator, and an unregistered provider must not extend credit. Its number starts with NCRCP.
2. An affordability check. The lender must take reasonable steps to assess your income, obligations and repayment history before it lends. A lender that says “no checks” skips what the law requires.
3. A quotation first. Before you sign you must receive a pre-agreement statement and quotation with the amount, the term, the interest, the fees and the total you will repay.
4. Capped charges. Interest, the initiation fee and the monthly service fee have legal ceilings by type of credit.

A loan from a lender that should be registered and is not is an unlawful agreement under the Act. The practical test takes two minutes: find the company’s legal name, search it in the NCR register of credit providers, and match the number. The brand and the registered name can differ; for example the register lists Creditbar as “Credit Bar (Pty) Ltd”.

The lenders on our list, with the number they carry. Ordered by NCRCP number, lowest first. On our online loans list, 8 of 9 lenders are found in the NCR register of credit providers. The register entry (“name on the register”) is what you search for, and some brands trade under a different legal name. It is not a ranking, and a number is not a recommendation.

Not on this table does not mean illegal, and being on it does not mean a lender will say yes. The most recently registered lenders are in new loan companies in South Africa. If the company you are dealing with is missing, search its legal name yourself in the NCR register of credit providers.

Next step: open the full A to Z list for each lender’s terms, documents and contact details.

A loan shark, or mashonisa, is an unregistered lender. Whatever a mashonisa says, the law already rules out the following:

• Keeping your ID, bank or ATM card, PIN or SASSA card. Any term that makes you deposit these with the lender is unlawful, and the lender may not use them to collect (sections 90 and 133). A report of 21 Sep 2026 calls holding them a criminal offence. If you receive a grant, see SASSA loans.
• Charging more than the cap. For short-term credit (up to R8 000 repaid within six months) interest is capped at 5% a month on a first loan and 3% a month on later loans in the same calendar year, the initiation fee at R165 plus 10% above R1 000, never more than 15% of the loan and never more than R1 050, and the service fee at R60 a month before VAT (regulations 42 to 44).
• Taking your goods. Only a court-appointed sheriff may remove your property over a debt.
• Threats and violence. These stay crimes whatever you owe.

The NCR’s position, as reported, is that a loan from an unregistered provider is illegal and cannot be enforced in court. That does not stop collection pressure in practice, so keep every message and report it.

The Scrolla report of 21 Sep 2026 describes the usual mashonisa price: R100 borrowed comes back as R150, R200 as R300, which is about 50%, charged again each time the money is borrowed. It quotes 30% to 50% a month as common. The table sets those next to the legal ceiling for one month. Method for the registered column: the initiation fee at the legal maximum is added to the loan, interest at 5% a month, the R60 service fee; before VAT.

On a very small loan the registered ceiling is also high, because fixed fees weigh most. The gap grows with the amount and the number of months: a mashonisa charge repeats every month, rolls over when you cannot pay and comes with no cap, no quotation and no rights. A registered lender’s price is disclosed before you sign, and you can settle early. Compare quotations on the online loans list before you borrow.

If you are asked for a card, a PIN or your ID, or are threatened, report it. The National Credit Regulator takes complaints about unregistered lenders and reckless credit on 0860 627 627. Threats, assault and theft are crimes: go to the police and keep the messages, receipts and the lender’s number. The same rules apply in Cape Town, Durban, Johannesburg or a small town.

Before you borrow again, check the lender: how to check your credit score covers fake sites, and loans for blacklisted people covers what registered lenders can offer if your record is poor. Under debt review, new credit is barred, which makes offers of easy money a red flag: see loans under debt review.