IMPORTANT : PLEASE READ THIS SECTION CAREFULLY

Our 5% Interest Rate: Compliant, Transparent, and Client-Centered

At Mhlongo Shield Holdings, we pride ourselves on providing financial solutions that are not only accessible but also fully compliant with the National Credit Act (NCA) and the National Credit Regulator (NCR). Every aspect of our loan products—from the interest rate to fee structures—is designed to ensure transparency, fairness, and adherence to regulatory standards.

1. Fully Legal and Transparent Cost Structure

We have set our interest rate at 5% per month to ensure affordability while remaining competitive. Additionally, our fee structures strictly adhere to the NCA guidelines, including:

• Initiation Fees:
  • For loans up to R1,000: 10% of the loan amount.
  • For loans exceeding R1,000: 10% of the first R1,000 + 5% of the amount exceeding R1,000, capped at R1,050.
• Monthly Service Fees: A fixed fee of R69/month, compliant with the maximum allowable service fees under the NCA.

2. Transparent Loan Example

To ensure complete clarity, here’s a breakdown of costs for a loan:

SHIELD EXTENDED LOAN

• Loan Amount: R2,100
• Initiation Fee:
  • R165 + 10% of the principal amount ( For loans over R1000)
• Monthly Service Fee: R69/month x 4
• Interest: 5% per month on the principal amount. For a four-month term, this equals:
  • R2,000 × 5% = R105/month
  • Total Interest (4 months): R420
  • VAT (15%) = R81.15c
• Total Repayment (over 4 months): R2,100 (principal) + R275 (initiation fee + 10% of principal) + R276 (service fees) + R420 (interest) + R81,.15c ( 15% VAT) = R3,052.15c

SHIELD EXPRESS LOAN ( 1 Month)

• Loan Amount: R500
• Initiation Fee: R165
• Monthly Service Fee: R69/month
• Interest : R500 x 5% = R25
• VAT (15%): R35.10c
• Total Repayment (over 1 month) : R500( Principal) + R165 ( Initiation fee) + R69 ( Service fee) + R25 (Interest) + R35,10c (VAT 15%)

3. Fairness and Responsible Lending

We prioritize fair lending practices to ensure our client's financial well-being:

• No Hidden Costs: All fees are disclosed upfront, with no unexpected charges or penalties.
• Fixed Interest Rate: Our 5% rate remains consistent throughout the loan term, ensuring predictability.
• No Collateral Required: Our unsecured loans are accessible to clients who may not have assets to offer as collateral.

4. Compliance with the NCA and NCR

Our business practices are fully aligned with the NCA to ensure:

• Transparency in all loan agreements and fee disclosures.
• Adherence to caps on fees and interest rates.
• Fair treatment of clients, with no predatory or unfair lending practices.

4. Safeguarding Your Financial Future: Legal, Transparent, and Ethical

We ensure every loan is subject to a thorough affordability check before disbursement. This aligns with the NCA’s commitment to preventing reckless lending practices. Every client is vetted to ensure that they can comfortably afford to repay their loan, thereby protecting both them and us from the risk of default.

• Thorough Investigations: All loans are subject to affordability assessments, ensuring that clients only borrow amounts they can reasonably afford to repay. This not only protects clients from over-indebtedness but also ensures we comply with the NCR’s guidelines.
• Clear Communication: We provide detailed, easy-to-understand loan agreements that outline the total repayment amount, interest charged, and any applicable terms. This transparency helps clients make informed decisions and understand their obligations.

5. The Consequences of Default

It’s essential that clients understand the seriousness of not repaying their loan on time. By law, we are required to explain what happens in case of non-payment, ensuring that clients are fully aware of the consequences.

• Defaulting on a Loan: If a client fails to repay their loan on time, the consequences can be severe. Not only will the unpaid amount accrue further interest, but defaulting clients may also face legal action to recover the debt.
• Legal Action Costs: In the event that legal action is necessary to recover unpaid funds, the client will be responsible for the costs incurred. This is standard practice and is explained clearly in the loan agreement. Clients should be aware that non-payment could result in additional financial burdens beyond the loan amount itself, including legal fees.
• Credit Impact: Failing to repay a loan can negatively impact a client's credit score, making it more difficult to obtain credit in the future. We ensure all clients are fully informed of these risks before signing any loan agreement.

6. Affordability, Value, and Flexibility

Compared to larger financial institutions, our loans offer more value and flexibility at a lower upfront cost. Traditional banks may seem to offer lower interest rates, but they often come with longer repayment periods, high collateral requirements, and hidden fees that can make their loans more expensive in the long run.

• Faster Approvals: Banks may take weeks or months to approve a loan, but we get your loan to you in days, sometimes even hours. That speed, along with minimal paperwork, is built into our pricing, giving you value for the cost.
• Tailored to Your Needs: You don’t need to borrow large sums if you don’t need to. We offer small, manageable loans that align with your financial situation, so you can get through short-term financial challenges without long-term financial burdens.

Conclusion: Our 5% Interest Rate is Legally Justified and Transparent

At Mhlongo Shield Holdings, we stand by our 5% interest rate as a fair, transparent, and fully compliant offering in the micro-lending sector. By choosing us, you are getting more than just a loan—you’re getting a financial service that values your needs, offers flexibility, and operates with the highest ethical standards.

Our mission is to provide clients with a safe, clear, and affordable solution for their short-term financial needs, while maintaining the legal integrity of our business.