Unsecured lending up
The National Credit Regulator (NCR) announced this week that there has been a “continued increase” in unsecured lending over the past quarter.
According to a report by the NCR, unsecured credit increased from R18.95 billion for June 2011 to R21.21 billion for September 2011 – a quarter-on-quarter increase of 11.92 percent.
Rajeen Devpruth, the manager of research and statistics at the NCR, says the increase in unsecured lending may in part be attributed to the 11 additional credit providers that were previously not reported on.
The NCR has cleaned up its database, which now has 4 500 credit providers, Devpruth says.
There is “massive” competition in the market, especially in the area of unsecured loans, among the banks, he says.
The banks continued to dominate the consumer credit market at September 30, with a market share of R1.12 trillion (88.37 percent). Retailers’ share was R38.97 billion (3.08 percent), non-bank vehicle financiers had R41.87 billion (3.31 percent) and “other credit providers” had R66.41 billion (5.24 percent).