Number of SA consumers in good credit standing increases

01 July 2016 - 12:55 By TMG Digital

South African consumer credit stood at R1.66-trillion at the end of the first quarter of 2016.

That’s according to information in the Consumer Credit Market Report and the Credit Bureau Monitor‚ which were released by the National Credit Regulator (NCR) on Friday.

The total outstanding balance as at March 2016 was up 0.91% from the last quarter of 2015‚ and 2.94% year-on-year for the same period last year.

Both the number of applications for credit and the total value of new credit granted decreased‚ by 11.72% and 12.74% respectively‚ quarter-on-quarter.

The NCR noted the “most significant trends observed in terms of credit granted for the quarter” as:

- The value of new mortgages granted decreased by R6.52-billion (16.45%) quarter-on-quarter but increased by R1.38-billion (4.34%) year-on-year;

- Secured credit‚ which is dominated by vehicle finance‚ decreased by R7.61-billion (18.22%) quarter-on-quarter and by R3.32-billion (8.85%) year-on-year;

- Credit facilities decreased by R658.76-million (4.72%) quarter-on-quarter and by R3.69-billion (21.72%) year-on year; and

- Unsecured credit decreased by R3.59-billion (15.97%) quarter-on-quarter but increased by R1.48-billion (8.49%) year-on year.

Just short of 60% of South Africa’s credit-active consumers are in good standing‚ with the NCR noting that their number had increased by 460 000 to 14.33-million‚ reflecting a 5.06% year-on-year uptick; while consumers with impaired records decreased by 320 000 to 9.55-million at the end of March.