NCR registration to be Credit Provider

NCR registration is required by any person who extends credit that does not form part of an incidental credit agreement. This registration is done with the National Credit Regulator NCR. All of a sudden you could be legible to work as a cash lender.

The National Credit Act requires the Regulator to promote the development of an accessible credit market. The NCR is also tasked with the registration of credit providers, credit bureaux, and debt counsellors. It’s a requirement of any party or juristic person who advances money and or who extends credit to register with the NCR.

How to become a credit provider

The natural or juristic person can establish whether they need to register as a credit provider in terms of the Act. All things considered If you need to register as a credit provider you can follow these steps to guide you through your application with the National Credit Regulator for registration of a company as a credit provider in terms of Section 40 and 41 of the Act:

1. Complete the form below at first
2. Have a company registration or be a sole proprietor
3. Provide a copy of the share certificate/s if the application is a company. Submit the following:
   1. Certified copy of ID
   2. Part 7 (disqualification of natural person form)
   3. Police clearance certificate (no older than 6 months)
4. Provide certified copies of ID/Passports of all members/directors/trustees/partners/sole proprietors by all means
5. Complete & sign resolution document if the applicant is a juristic person
6. Provide a police clearance certificate for all members/directors/trustees/partners/sole proprietors issued by the South Africa Police Services.
7. Proof of payment
8. Letter from the bank confirming the applicant’s banking details or a copy of a cancelled blank check
9. Proof of registration with the South African Receiver or Revenue Services.
10. To register a new company please CLICK HERE.

Once you have submitted the online application below, all communication can be sent via email to “info@tshepisoden.com” as a result . As long as all requirements are in order, we can guarantee an approval.

Above all, the process can take between 4 and 6 weeks to be completed, pending the provision of accurate information being provided by the natural or juristic person in their application. Be that as it may, we can assist with all the above all in all.

What happens if you don’t register as a national credit provider?

If a person fails to register in circumstances where credit is provided as provided by the Act both the capital and the interest may be at risk and the entire agreement can be found to be void. We strongly suggest that you consider whether you’re regarded as a credit provider to avoid situations where you could lose your money.

Chapter 3, Section 40(3), (4) and (5) of the Act regulates the sanctions that apply to an entity that is required to register as a national credit provider but have not done so. These sections of the Act state:

• Section 40 (3): “A person who is required in terms of subsection (1) to be registered as a credit provider, but who is not so registered, must not offer, make available or extend credit, enter into a credit agreement or agree to do any of those things.”
• Section 40(4): “A credit agreement entered into by a credit provider who is required to be registered in terms of subsection (1) but who is not so registered is an unlawful agreement and void to the extent provided for in section 89.”

Exclusions (Section 4)

As much as it’s strongly encouraged, certain exclusions apply to the requirement to register as a credit provider. Another key point is to determine the type of credit business you are pursuing. As a result we can determine the type of certificate to apply for.