Un­se­cured lend­ing up

Weekend Argus (Saturday Edition) - - MEDIA& MARKETING -

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).

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