Interest Rate Cuts what you need to know

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.