Forcing clients to credit options with the highest interest rates

I have a credit card with Capitec and my terms and conditions clearly state that I can increase my credit card limit one a year.

When I did try to increase my credit card, the bank declined it and offered me termed loan for a more than the limit increase I requested. When I asked why they said it was due to affordability issues.

This makes no sense since they offered me a term loan for more than what I asked for but with 28.25% interest.

I will like this to be explained to me because it seems to me that capitec is forcing clients to take the credit options with higher interest rates.

I would hate for Capitec to get another fine when I end up reporting this to NCR