Lending to a Friend or Selling Property on Credit – Must You Register as a Credit Provider?

KVV Inc Attorneys

Published on: 04/03/2025

Lending money, even to friends or family, can be risky. A recent Supreme Court of Appeal ruling highlights the complexities of the National Credit Act (NCA). Even one-off loans, including deferred payment property sales, may require lenders to register as credit providers. Failure to do so can invalidate the agreement, potentially costing the lender the entire loan amount. While some exclusions exist, such as certain family loans, the "arm's length" principle is key. If any independence exists between parties, the NCA likely applies. Seek legal advice before any lending arrangement, as registration involves red tape.