As part of its effort to attract more higher-income individuals, Capitec wants to introduce education, building, and medical loans.
Capitec CEO Gerrie Fourie stated that the business is already testing these “purpose lending” products and plans to make them available later this year. According to Fourie, the loans would be paid to the provider in one lump sum.
Gerrie Fourie explained that the money that you will apply for for any of these three loans won’t go to you but it will be paid to the provider.
In April 2019, the bank, which began with unsecured lending, released its first “purpose lending” product, offering automobile finance.
Capitec Home Loans
Since 2014, Capitec has been giving home loans through the mortgage financing firm SA Home Loans. However, Capitec stated that the new home loans are entirely a whole new product offering and will be branded as a Capitec Home Loan.
By the end of February, 300 home loans had been approved since the program began in November 2020.
However, Capitec’s immediate objective does not include house loans; instead, it will concentrate on unsecured lending that includes loans, credit cards and its recently launched revolving access finance option.
As a result, SA House Loans will continue to provide the new house loan product, and thus the Capitec home loan service will not appear on the bank’s balance sheet.
Capitec, on the other hand, collaborated with SAHL to revamp the home loans it offers to its customers so that they are more in line with the rest of the company’s offerings.
Capitec Medical Loans
Unlike a regular personal loan, this loan of up to R250 000 over 84 months comes with a lower interest rate and a longer repayment period.
This medical loan will will provide a few of Capitec’s service providers websites where you will be allowed to apply. If you qualify and your credit is granted, the funds will be paid out to the appropriate partner on your behalf.
Capitec Full Year Results
Fourie said after the bank announced its full-year results, which revealed a 27 percent drop in headline profit to R4.6 billion, despite a significant comeback in the last six months.
Over the last year, Capitec’s active client base has grown by 14% to 15.8 million.
It is making a concerted effort to appeal to a higher-income clientele, including launching an access facility offering last year.
