3.1 Subject to subclause (3.2), a Lender may not change any fee to be paid by the Borrower in circumstances where a micro loan transaction is not granted or money is not paid out to the Borrower in respect of the micro loan transaction.
3.2 This provision does apply to fees reasonably charged for evaluating or preparing business plans.
3.3 If the repayment period provided in a micro loan agreement does not exceed twelve months, the borrower may make additional payments or settle the outstanding amount in one payment. If the repayment period exceeds 12 months, and if the Borrower wishes to settle the outstanding amount in one payment, the Lender may, if written notice is required in terms of the agreement, require up to 60 days written notice of the Borrower’s intention to settle the outstanding amount in one payment.
3.4 The Lender may not stipulate, demand or receive finance charges which are in excess of the annual finance charge rate determined by the Registrar in terms of section 2 of the Act.
