Capitec launches revolving credit facility
The facility gives customers the flexibility to make additional repayments to reduce repayment periods and save on interest
Capitec, SA’s largest unsecured lender, announced the launch of a revolving credit facility at interest rates from 12.4% on Tuesday.
Capitec’s offering gives customers the flexibility to make additional repayments to reduce repayment periods and save on interest. Furthermore, customers only pay a monthly admin fee for the facility when they use it.
Francois Viviers, the head of marketing and communications at Capitec, says that in just over a month, more than 17,000 access facilities have been sold, with most clients being middle- to higher-income earners.
“A significant number of clients are using the facility for home improvements, which, given the current lockdown, has become a priority for people,” he says.
If you’re not a Capitec customer, you can use the bank’s website to apply for the facility. Capitec customers can use their banking app.
All customers are subject to a once-off in-branch credit assessment. New customers will need to their ID document or smart ID card; their latest three salary slips; and a bank statement showing their latest three salary deposits.
If your application is successful, you will be charged an initiation fee. A monthly admin fee of R69 is only payable when you have an outstanding balance.
The term of the revolving credit facility is up to 60 months. Once an amount is repaid, it can be accessed again should the need arise.
Capitec customers can manage the facility from the bank’s app, selecting how much of it they want to use at a time, as well as a monthly repayment amount or term (up to 60 months).
“The access facility allows South Africans to get funding for specific, long-term purposes or projects. It gives you instant access to money, which can be used as it is required to renovate your home, purchase equipment needed to start a side business or pay for education,” Viviers says.
He adds that the bank has refined its credit offerings in recent years to appeal to the needs of all income segments, while driving down the cost of credit.