In short
The distinction that matters: you do not need to be registered to place capital as a private lender. Any person, trust or company in South Africa can. It is the organisation that administers the arrangement and grants the credit that must be a registered credit provider with the National Credit Regulator. Separately, anyone giving advice needs an FSP licence under FAIS, and FICA governs client identification. What private lending is not is a bank deposit — so there is no deposit guarantee behind it.
01 — The lending side
The National Credit Act and the NCR
The National Credit Act governs the granting of credit in South Africa — and this is where the most common misunderstanding lives, so it is worth being exact.
You do not need to be registered to place capital as a private lender. Any person, trust or company in South Africa can. Nothing about putting money into a lending arrangement requires you to hold a licence, and nobody should tell you otherwise.
What must be registered is the organisation that administers the arrangement and actually grants the credit to borrowers. That entity is the credit provider in the eyes of the Act, and it carries an NCRCP number.
The distinction in one line
You provide the capital. The administrator grants the credit. The registration obligation sits with the administrator, not with you.
That registration is public and checkable, and it is the single most useful thing to verify about anyone proposing to lend your money out — because it establishes that the lending side of the arrangement sits inside the credit regime rather than outside it.
Governs
The granting of credit
Regulator
National Credit Regulator (NCR)
Who must register
The administrator — not you
What to look for
Their NCRCP number, at ncr.org.za
02 — The advice side
The FAIS Act and the FSCA
A separate regime governs advice. The Financial Advisory and Intermediary Services Act requires anyone who gives advice on, or intermediates in, financial products to be licensed as a Financial Services Provider — an FSP — under the oversight of the Financial Sector Conduct Authority.
The distinction matters and it is frequently blurred. Explaining how something works is information. Telling you it is suitable for your circumstances is advice, and advice is a licensed activity.
Worth knowing
If someone tells you a specific product is right for you, they should be licensed to say so. If they are giving you factual information and pointing you to your own adviser, that is a different — and entirely legitimate — role.
ProLend is a marketing and distribution platform. Its consultants are trained to explain how the arrangements work and to introduce clients, not to give financial advice — which is why everything on this site is framed as education rather than a recommendation.
03 — Identity
FICA: why you are asked for documents
The Financial Intelligence Centre Act requires accountable institutions to establish and verify who their clients are, and to understand where their money comes from. That is why placing capital involves an ID document, proof of address, proof of bank account, and a declaration about the source of funds.
It can feel like friction. It is worth reframing: an operator who does not ask these questions is the one to worry about. The absence of FICA is a much louder signal than its presence.
- Identity — ID or passport.
- Address — a recent utility bill or equivalent.
- Banking — proof the account is yours.
- Source of funds — a declaration of where the money came from.
04 — The limit
What regulation does not do here
This is the part to be straight about. Regulation governs conduct — who may lend, who may advise, who must verify identity. It does not guarantee outcomes.
Private lending is not a bank deposit. The administrator is not a deposit-taking institution, which is also why no IT3(b) certificate is issued. There is no deposit insurance standing behind the capital.
Plainly
A registered credit provider is not the same as a guaranteed return. Registration tells you an operator is inside the regime; it does not tell you an arrangement cannot lose money.
That is not a reason to avoid it — it is a reason to understand what you are placing capital into. A secured lending arrangement against defined debt is a conservative structure. It is simply not a deposit, and should not be compared to one as though it were.
05 — Your checks
How to check any operator in five minutes
These apply to anyone proposing to take your money, not only to us. If an operator resists any of them, that is your answer.
| What to ask for | Where to verify | |
|---|---|---|
| Credit provider | Their NCRCP number | ncr.org.za |
| FSP licence | Their FSP number, if they advise | fsca.co.za |
| Company | Registration number and directors | CIPC |
| Paperwork | The actual agreement, before you commit | Read it, or have it read |
- Ask where the money physically goes. A legitimate operator can tell you the account and the entity without hesitating.
- Be wary of urgency. Pressure to decide today is a signal, not a special offer.
- Be wary of guarantees. Nobody can guarantee a lending return. An operator who says otherwise is telling you something untrue.