A Small Amount Credit Contract (SACC) is a type of personal loan defined by the National Consumer Credit Protection Act. The defining features:
- Amount borrowed is $2,000 or less
- Term is between 16 days and 12 months
- The fees a lender can charge are capped by law
What the fee cap actually is
Under s31A of the NCCP, SACC fees are limited to:
- 20% establishment fee (one-off, at the start)
- 4% monthly interest (on the outstanding balance)
- A capped default fee (only if you miss payments)
That's it. No application fee, no broker fee, no early-payout fee, no "monthly service" fee. The law is strict about this.
What it means for you
For a $1,000 loan over 12 weeks, total fees are about $311 — and every cent is predictable before you borrow. No surprises.