---
title: Prime-linked
description: Funding info
---

[Skip to content](https://knowledge.fundsmart.co.za/prime-linked#main-content)

[![african-bank-updated-logo](https://knowledge.fundsmart.co.za/hs-fs/hubfs/african-bank-updated-logo.png?width=156&height=50&name=african-bank-updated-logo.png)](https://africanbank-finfind-za-145870874.hs-sites-eu1.com/understanding-the-credit-record-system?hsLang=en)

Open main navigation

Close main navigation

 Need help understanding how business funding works?

- There are no suggestions because the search field is empty.

1. [Funding info](https://knowledge.fundsmart.co.za/?hsLang=en)
2. [Funding Glossary](https://knowledge.fundsmart.co.za/funding-glossary?hsLang=en)

# Prime-linked

A prime-linked interest rate means that you are being charged the average rate of interest charged on loans by the major commercial banks. It also means that if the prime rate increases, then your interest charges will increase accordingly. These types of loans are less risky for the lenders.

- [Understanding business funding](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#main-content)

    - [Challenges to accessing finance](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#challenges-to-accessing-finance)
    - [Different funding needs](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-funding-needs)
    - [Different types of funders](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-types-of-funders)
    - [Different types of funding products](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#different-types-of-funding-products)
    - [Credit scores and reports](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#credit-scores-and-reports)
    - [Learn more](https://knowledge.fundsmart.co.za/understanding-business-funding?hsLang=en#learn-more)
- [Funding options for startups](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#main-content)

    - [Angel investors](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#angel-investors)
    - [Credit cards](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#credit-cards)
    - [Crowdfunding](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#crowdfunding)
    - [Family and friends](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#family-and-friends)
    - [Government funding](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#government-funding)
    - [Home loan](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#home-loan)
    - [Incubators and enterprise development programmes](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#incubators-and-enterprise-development-programmes)
    - [Overdrafts](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#overdrafts)
    - [Social enterprise funding/impact investing](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#social-enterprise-funding-impact-investing)
    - [Venture capitalists](https://knowledge.fundsmart.co.za/funding-options-for-startups?hsLang=en#venture-capitalists)
- [Funding Glossary](https://knowledge.fundsmart.co.za/funding-glossary?hsLang=en)

©Copyright 2026 African Bank. An authorized financial services and credit provider Reg No. 2014/176899/06 (NCRCP7638)