Is it possible to run a microlending institution and do insurance broking...

Is it possible to run a microlending institution and do insurance broking as well?

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However, the credit provider must be a registered financial services provider.

Registration under the National Credit Act:

Registration

The Registration Division is responsible for the registration of Credit Providers, Credit Bureaux and Debt Counsellors. It also monitors compliance with the conditions laid out in the Act as well as the handling of queries related to the registration process.

Who needs to register?

The National Credit Act requires credit providers, debt counsellors and credit bureaux to register with the NCR with effect from 01 June 2006.

Credit providers

Registration requirements:

  • Credit providers who have entered into at least 100 agreements or have a total outstanding book of credit of more than R500 000;
  • Are juristic persons and individuals;
  • Have a commitment to combating over-indebtedness.

These registration requirements exclude persons who:

  • Have fewer than 100 agreements, or a total outstanding book of credit equal to or less than R500 000;
  • Provide incidental credit as a result of outstanding transactions.

Note that a person who is required to be registered as a credit provider, but who is not so registered, must not offer, make available or extend credit, enter into a credit agreement or agree to do any of those things.

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