Capitec tightening their rules on loans

The instability of the economic situation has led to customers who borrowed money from Capitec bank failing to pay it in the right way, which has led it to tighten the rules of money lending.

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Capitec said it tightened its credit extension standards during the six months leading up to the end of August.

This bank, which is one of the banks with the most customers in the country, in its statement as the third quarter of the year begins, said that the weak economic situation in South Africa has been reflected in high interest rates and inflation that is higher than the government’s target in the past few months.

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WHAT DID THE CAPITEC STATEMENT SAY?

“This led to consumers being under financial pressure which had an impact on bank loans, leading to higher fees to be paid by customers who borrowed money which caused the borrowers to be under pressure to pay them off.

“Because of this, we have strengthened the terms of granting loans to reduce the risk seen in the loan books in this difficult economic situation,” said the statement.

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This bank said that if it looks at the losses due to debts, it was expected until 31 August.

INCREASE IN PROFIT

On the other hand, this bank says that there was an increase in profit during this period due to the large purchase of funerals plans that the bank sells.

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The bank expects its earnings to increase between 8% and 10% per share in the next review period.

Capitec’s half-year results are expected to be released later this month.

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