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The Unsecured Credit Agreement is a fundamental document in South African consumer lending, essential for any credit provider extending unsecured credit to consumers. It must comply with the National Credit Act 34 of 2005 and related regulations, which set strict requirements for credit providers and protect consumer rights. This document is used when providing personal loans, credit facilities, or other forms of unsecured credit where no collateral is required from the borrower. It contains mandatory provisions regarding interest rates, fees, consumer rights, credit assessments, and disclosure requirements as prescribed by South African legislation. The agreement is particularly important as it forms the basis of the legal relationship between credit providers and consumers while ensuring regulatory compliance and consumer protection.

1. Parties: Identification and details of the credit provider and consumer, including registration numbers and contact details as required by the NCA

2. Background: Context of the agreement and confirmation that the consumer has been properly assessed for creditworthiness as per NCA requirements

3. Definitions: Definitions of key terms used in the agreement, including statutory terms from the NCA

4. Loan Amount and Purpose: Specification of the principal debt amount and purpose of the credit facility

5. Interest Rate and Charges: Details of the interest rate, initiation fees, service fees, and other charges in compliance with NCA prescribed maximums

6. Repayment Terms: Payment schedule, method of payment, and total cost of credit

7. Consumer Rights: Statutory rights under the NCA including cooling-off period and early settlement rights

8. Default and Enforcement: Consequences of default, enforcement procedures, and collection processes in line with NCA requirements

9. Statements and Notifications: Frequency and method of delivering account statements and other communications

10. Data Protection: Handling of personal information in compliance with POPIA

11. General Terms: Standard contractual provisions including governing law, jurisdiction, and whole agreement clause