The Small Credit Agreement is designed for use in South Africa when providing credit facilities of relatively small values to consumers. It serves as a legally binding contract between credit providers and consumers, incorporating all requirements of the National Credit Act 34 of 2005 and its regulations. This document is essential for any credit provider engaging in consumer lending, whether in retail, banking, or microfinance sectors. The agreement includes mandatory disclosures, cost of credit calculations, repayment schedules, and consumer protection provisions. It's particularly relevant for credit facilities below the threshold specified in the NCA regulations and requires registration with the National Credit Regulator. The document ensures compliance with South African consumer credit legislation while protecting both the credit provider's and borrower's interests.

1. Parties: Identification of the credit provider and consumer, including registration numbers and contact details as required by the NCA

2. Background: Brief context of the credit agreement and confirmation that pre-agreement disclosures have been made as required by the NCA

3. Definitions: Key terms used in the agreement, including statutory definitions from the NCA

4. Loan Amount and Purpose: Specification of the principal debt and intended purpose of the credit

5. Cost of Credit: Breakdown of interest rates, initiation fees, service fees, and other charges as prescribed by the NCA

6. Repayment Terms: Payment schedule, method of payment, and payment dates

7. Consumer Rights: Statutory rights under the NCA including right to early settlement and cooling-off period

8. Default and Collections: Consequences of default and collection procedures in compliance with the NCA

9. Statements and Notifications: Requirements for account statements and important notifications

10. General Terms: Standard contractual provisions including governing law and jurisdiction