ANC joins EFF in calls for action over 'race-based home loans pricing'

The ANC has joined the EFF in calling for a probe into allegations of race-based interest rates for home loans by South African banks.

The governing party added that black clients who have been charged higher interest rates compared to their white counterparts must be compensated by the implicated banks. 

This comes after revelations of alleged racism against black home owners by FNB. The claims were broadcast on Sunday on the SABC's Special Assignment television programme.

The EFF on Tuesday called for a commission of inquiry into the matter.

The ANC has since jumped on the bandwagon, calling for the "relevant authorities" to "urgently" investigate the allegations.

The governing party said in a statement: "Those found guilty of race-based pricing should face the full might of the law.

"We further insist that clients who have been at the receiving end of this unethical business practice should be reimbursed and have their payments recalibrated to reflect the true cost of the loan. 

"If proven to be true, the red-lining by financial institutions perpetuates racial inequalities and effectively prevents black people from owning assets. It also reinforces apartheid spatial patterns by putting constraints on the location decisions of black households."