Repo Rate Hike to 7.25%: What It Means for Your Loan Repayments
On 23 September 2026 the South African Reserve Bank (SARB) raised the repo rate by 25 basis points to 7.25%, and the prime lending rate rose to 10.75%. The decision was unanimous and was driven by renewed fuel price pressure, with the SARB governor warning that inflation could rise above 5% in late 2026 before easing. If you have a variable-rate home loan, vehicle finance or personal loan, your instalment is likely to go up. The tables below show the rate changes and roughly what they mean for your monthly interest, and you can compare NCR-registered lenders on saloansonline.co.za.
| Rate | Before the Hike | From 25 September 2026 |
|---|---|---|
| Repo rate | 7.00% | 7.25% |
| Prime lending rate | 10.50% | 10.75% |
| Next decision | The final Monetary Policy Committee meeting of 2026 is in November | |
| Pricing change on the way | The SARB has proposed replacing prime with the repo rate, so a loan priced at prime would be quoted as repo plus 3.5 percentage points | |
Roughly how much more interest will you pay?
| Variable-Rate Debt Outstanding | Approx. Extra Interest per Month (0.25% increase) |
|---|---|
| R100,000 | About R21 |
| R500,000 | About R104 |
| R1,000,000 | About R208 |
Illustration only. Figures are simple estimates of extra monthly interest on the outstanding balance, and your actual instalment depends on your loan term and your lender. Fixed-rate loans are generally not affected by repo rate changes. This article is for information only and is not financial advice.
Sources
- Reserve Bank hikes interest rates by 25 basis points (eNCA)
- SARB raises repo rate to 7.25% and what it means for your bills (Briefly)
- Prime lending rate to 10.75% from 25 September (Capmad)
- SARB keeps interest rates unchanged in July (EWN)
- Say goodbye to prime interest rates in South Africa (BusinessTech)