South Africa sees credit extension drop

South Africa has also seen a seasonal slowdown in credit extension, according to the latest Consumer Credit Market Report (CCMR) and Credit Bureau Monitor (CBM) released by the National Credit Regulator (NCR) in that country last week.

The CCMR and CBM are based on data submitted to the NCR by registered credit providers and credit bureaus respectively.

NCR CEO Nomsa Motshegare advised consumers to live within their means, take credit only when there is an absolute need and only from registered credit providers.

“Consumers who are not coping with repayments should talk with their credit providers or consult registered debt counsellors for assistance,” cautioned Motshegare.

The latest edition of the reports covers credit market information up to March 2017. The number of applications for credit decreased by 9.49% quarter-on-quarter from 10.52 million in December 2016 to 9.53 million in March 2017. The total value of new credit granted decreased by 5.63% quarter-on-quarter from R123.40 billion to R116.46 billion.

Some of the most significant trends observed in terms of credit granted for the quarter ended March 2017 include that the value of new mortgages granted decreased by R3.08 billion (8.24%) quarter-on-quarter, but increased by R1.15 billion (3.47%) year-on-year.

Credit facilities increased by R390.87 million (2.62%) quarter-on-quarter and by R2.02 billion (15.14%) year-on year.

Unsecured credit decreased by R2.99 billion (12.96%) quarter-on-quarter, but increased by R1.19 billion (6.29%) year-on-year.

The total outstanding consumer credit balances (or gross debtors book) as at March 2017 was R1.71 trillion, representing an increase of 1% quarter-on-quarter and 3.04% year-on-year.

NEWS24