The South African Reserve Bank cut interest rates for the first time since March 2018 again last month, lowering rates by 25 basis points to 6.5%. This cut has led to banks cutting their prime lending rates from 10.25% to 10%. For those of you making monthly repayments on home and vehicle loans, this interest rate drop results in a lower monthly instalments. For example, Sipho and Tshepang have a home loan of R1 million to be repaid over a 20 year period. At 10.25% per annum interest, they paid R9,816.00 per month. With the rate cut, Sipho and Tshepang’s repayment is reduced to R9,650.00 Take advantage of the rate cut and choose to SAVE a bit more by putting in extra towards your monthly stokvel contribution. Together, we can achieve more and make #WealthBuildingSimple.