SA’s biggest four banks have about R98bn home loans in stage three, the last stage before a loan is deemed to be nonperforming, reflecting the effect of high interest rates on consumers, according to data from the country’s largest lender, Standard Bank.

Standard Bank said the surge in interest rates since November 2021 has put pressure on consumers, especially in repaying variable instalment loans such as mortgages and vehicle asset finance. The prime lending rate has risen 475 basis points (bps) since November 2021 to 11.75%, which is 200bps higher than a few months before the Covid-19 crisis hit...

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