The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The Prime Overdraft Rate is the benchmark interest rate used by South African commercial banks for lending to their most creditworthy private sector customers. It is directly linked to the Repo Rate set by the South African Reserve Bank (SARB), usually maintaining a fixed spread above it. This rate influences the cost of mortgages, personal loans, and business credit across the economy.
The rate is calculated as a fixed margin (historically 350 basis points) above the South African Reserve Bank's Repo Rate. Commercial banks adjust this rate immediately following changes in the central bank's policy rate.