KZN consumer credit up

2010-12-18 00:00

CREDIT granted to consumers in KwaZulu-Natal surged during the third quarter of 2010, signalling a continued recovery in the consumer market — in line with the national picture.

Total credit granted in KZN between July and September amounted to about R9,5 billion, 37,6% higher year-on-year. The figure was almost R6,9 billion in the third quarter of 2010. The latest figure is 8,2% higher quarter-on-quarter. Total credit granted in KZN for the year to date (first nine months of 2010) is 31,5% higher year-on-year.

KZN accounts for about 12,6% of the total consumer credit market, behind Gauteng and the Western Cape.

According to the National Credit Regulator’s (NCR) Consumer Credit Market Report, there was a 40,23% year-on-year increase in consumer credit granted nationally.

The NCR said there was a rapid growth in unsecured lending — which recorded a year-on-year increase of 59,85%. Unsecured credit occurs where the loan or credit is not secured by any pledge or personal security.

Overall, the total value of new credit granted was R75,14 billion in the third quarter of 2010. This is still well below the levels recorded in 2007.

NCR CEO Gabriel Davel said that the number of applications received for credit increased by 18,2% year-on-year to 6,87 million in September 2010.

The NCR also revealed that the rejection rate of applications by credit providers reduced from 40,26% for the quarter ended June 2010 to 39,13% for the quarter ended September 2010. This figure was 44,13% a year ago.

Banks still dominate the consumer credit market, with a 90% share followed by retailers with a 2,9% share.

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