Rise in KZN’s credit market

2011-04-07 00:00

A CREDIT recovery has firmly taken hold in KwaZulu-Natal, judging by the latest national consumer credit report released by the National Credit Regulator (NCR) for the fourth quarter of 2010.

The KZN figures came in far ahead of the national figures.

Total credit granted in KZN grew 40% year on year in the final quarter of 2010 to R11,4 billion — a level last seen in 2007.

The figure was 20,6% higher quarter on quarter in the final quarter of 2010.

The value of credit transactions granted in KZN previously slumped to a low of R5,5 billion in the second quarter of 2009 as a result of the recession.

The latest provincial figure is more than double that of this low point.

The NCR also said that the total value of new credit granted in South Africa between October and December 2010 increased 11,17% quarter on quarter and 31,97% year on year.

KZN has grown its share of the consumer credit market significantly over the past few years.

Although Gauteng still dominates the figures (with about 44% of the total share of credit granted), KZN’s share is about 13,7% — up from 11% in the first quarter of 2008.

“The number of applications received for credit decreased by 156 671 from 6,87 million in September 2010 to 6,72 million in December 2010, representing a decrease of 2,28% for the quarter [an increase of 4,06% when compared to the same period last year]. The rejection rate of applications was 43,21%,” the NCR said.

Although the mortgage sector showed a modest increase, secured credit (a key indicator of vehicle finance) rose 11,6% quarter on quarter while unsecured credit increased 25,7% quarter on quarter.

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