Description

Credit and Lending Policy Template for Credit Providers

The Credit and Lending Policy Template is an editable downloadable document designed for registered South African credit providers that need a structured policy for responsible lending, affordability assessments, credit approvals, disbursement controls, collections, fraud prevention, POPIA, FICA and regulatory recordkeeping.

This template gives credit providers a practical framework for documenting how credit is granted, administered, monitored and collected. It is suitable for businesses that need a formal internal policy to support National Credit Act compliance, staff training, management oversight and operational control.

What This Credit and Lending Policy Template Covers

The template has been drafted as a generic document that can be customised for different credit provider business models, products, customer types and approval structures. It includes client notes and placeholders to guide the user on what must be completed, removed or amended before the policy is adopted.

The template includes sections for:

• Document control and version history
• Client instructions before use
• Important regulatory note
• Definitions and key lending terms
• Introduction, purpose and objectives
• Scope of the lending policy
• Roles and responsibilities
• Target market and product scope
• Pricing, fees and charges
• Acceptable customer documentation
• Responsible lending principles
• Loan application process
• Affordability assessment requirements
• Debt-to-income or affordability threshold guidance
• Credit score and risk evaluation
• Repeat loan or second loan evaluation
• Loan decline and affordability non-compliance process
• Pre-agreement statement and quotation process
• Loan approval requirements
• Loan disbursement and oversight controls
• Staff loan controls, where applicable
• Credit bureau reporting and dispute handling
• Arrears management and collections
• Bad debt, handover and write-off procedures
• Product-specific lending rules
• Fraud mitigation controls
• FICA, sanctions and customer due diligence
• POPIA, confidentiality and data protection
• Recordkeeping requirements
• Complaints and customer support
• Training and competence
• Monitoring, reporting and review
• Non-compliance consequences
• Policy approval

Annexures Included

This template includes practical annexures that can be completed and used as part of the credit provider’s compliance and operational file.

The annexures include:

• Annexure A: Credit Product Schedule
• Annexure B: Approval and Escalation Matrix
• Annexure C: Affordability Assessment Checklist
• Annexure D: Loan Decline Checklist
• Annexure E: Arrears and Handover Checklist
• Annexure F: Client Customisation Checklist

Why Credit Providers Need a Written Lending Policy

A written credit and lending policy helps a credit provider apply lending decisions consistently, fairly and lawfully. It also helps staff understand the correct process for receiving applications, collecting documents, assessing affordability, escalating risky applications, issuing quotations, approving loans and managing arrears.

Without a documented policy, a credit provider may struggle to prove that it follows a consistent process for responsible lending, reckless credit prevention, affordability assessments, repeat lending, credit bureau reporting, customer complaints, collections and recordkeeping.

This template helps address common weaknesses such as:

• No formal lending policy in place
• Unclear affordability assessment process
• No documented approval and escalation matrix
• Inconsistent treatment of repeat or second loan applications
• No clear process for declined applications
• Weak controls over loan disbursements
• No structured arrears and handover process
• Unclear credit bureau reporting controls
• Poor recordkeeping for NCR compliance purposes
• No documented fraud mitigation process

Who Should Use This Template?

• Registered credit providers
• Businesses applying for NCR registration
• Micro-lenders and short-term credit providers
• Credit providers reviewing their lending operations
• Compliance officers assisting NCR-regulated businesses
• Business owners who need a practical credit governance document
• Managers responsible for lending, approvals, collections and credit risk

Editable and Customisable Template

This is an editable template that can be customised with the credit provider’s business name, NCRCP number, product types, loan amounts, pricing structure, affordability methodology, approval roles, credit bureaus, complaints contact details, recordkeeping periods and internal controls.

The template also includes a client customisation checklist to help the user confirm that all business-specific information has been inserted before the policy is approved and implemented.

Important Compliance Note

This template must be reviewed and adapted before use. Each credit provider remains responsible for ensuring that its final policy complies with the National Credit Act, National Credit Regulations, NCR requirements, FIC Act, POPIA and its actual lending practices.