Unfair Interest Rate on Personal Loan Despite SARB Rate Cuts

I am extremely disappointed with Nedbank’s handling of my personal loan interest rate.

I took out a personal loan with a repayment term of 72 months. The interest rate app**** was a staggering 29.25%, resulting in a monthly repayment of R7,688.63 (excluding credit life insurance, which I pay separately).

Despite the South African Reserve Bank (SARB) reducing the repo rate by 50 basis points since April 2024, Nedbank has not adjusted my interest rate accordingly. A fair adjustment would have brought my rate down to 28.75%, which would reduce my monthly repayment to R7,356.10.

Overpayment Breakdown: • Monthly overpayment: R332.53 • Overpayment so far (16 months): R5,320.41 • Projected overpayment for remaining 56 months: R18,621.45 • Total overpayment: R23,941.86

This is a significant financial burden, especially considering that interest rates across the market have been declining. I believe I am being unfairly charged and request that Nedbank: 1. Reviews and adjusts my interest rate in line with SARB’s rate cuts. 2. Recalculates my monthly repayments accordingly. 3. Refunds or credits the overpaid amount. 4. Reduce the interest rate to a fair percentage of 18%; currently they operate like loan sharks with these ridiculous rates.

I would appreciate a prompt and transparent resolution to this matter.