South Africa's credit regulator has asked a consumer tribunal to impose a fine on grocer and furniture retailer Shoprite for reckless lending, it said on Wednesday.

The National Credit Regulator said Shoprite should also not have sold retrenchment and occupational insurance to pensioners and consumers receiving the government welfare grants.

"The sale of retrenchment and occupational disability covers to pensioners and consumers receiving government social grants is unreasonable and imposes an unreasonable cost," said Jacqueline Boucher, manager at the NCR.

The NCR said it would ask the National Consumers Tribunal, which adjudicates on such cases, to impose a fine on Shoprite, refund consumers and have "reckless" loans written off.