- Capitec plans to introduce education, medical and building loans later this year.
- The loans will involve once-off amounts paid directly to suppliers.
- The bank is aiming at higher-income earners for growth.
- For more stories, go to www.BusinessInsider.co.za.
Capitec plans to launch education, building and medical loans as the bank attempts to lure more higher-income earners.
Speaking to the Business Insider SA, Capitec CEO Gerrie Fourie said the company is already testing these “purpose lending” products, and wants to offer these loans later this year. Fourie says the loans will involve once-off amounts paid directly to the supplier.
“So the money won’t go to you, but it will go straight to the supplier,” he said.
The bank, which has its roots in unsecured lending, launched its first “purpose lending” product in April 2019, offering vehicle financing.
READ | Capitec has quietly started giving loans on older used cars – but not everyone is a fan
Last year, it introduced a new home loan product in partnership with the mortgage finance company SA Home Loans.
READ | Capitec’s new home loans aren’t linked to the prime rate – here’s what else you need to know
Since launching in November 2020, 300 home loans were granted by the end of February.
Fourie spoke after the company released its full-year results, which showed a 27% fall in its headline profit to R4.6 billion – although the company did see a strong recovery in the past six months.
Capitec’s number of active clients increase by 14% to 15.8 million over the past year.
It is making a strong play to attract a higher-income earning client base, including by introducing an access facility product last year.
The product is a more flexible alternative to a term loan and provides clients with access to revolving credit whenever they need to, with no interest or service charges if the client hasn’t used money. The repayment period can also be either increased or decreased.
Since launching, 159,000 clients used the access facility, and the bank has disbursed R6.4 billion.