---
title: Prime rate
description: In South Africa, the prime lending rate refers to the average rate of interest charged on loans by major commercial banks to private individuals and companies. It is used as a point of reference by le
---

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# Prime rate

In South Africa, the prime lending rate refers to the average rate of interest charged on loans by major commercial banks to private individuals and companies. It is used as a point of reference by lenders. For example, your loan contract may state the interest rate as prime plus 3%. The prime rate varies, so it is important to check its value before signing the loan contract, and to see whether you can negotiate a better interest rate.

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