Teba bank helps miners

Teba Bank's mission is to provide affordable, accessible and quality financial services to the under banked in urban, small town and rural areas, with a focus on mineworkers, and to make a positive contribution to communities.

The Bank is owned by a trust acting as custodian for the interests of the depositors, jointly represented by the Chamber of Mines and the National Union of Mineworkers.

Since 1976, the Bank operated as Teba Savings Fund, providing basic financial services to mineworkers and their dependents in rural and small towns in South Africa.

The Savings Fund converted to Teba Bank, and a banking licence was received in July 2000.

Teba Bank has built on its experience of providing financial services to the mining industry.

The loan product is the first of its kind in South Africa providing credit to customers who have a proven savings history, giving those who really need it access to credit in a responsible manner without onerous qualifying criteria.

Interest rates are competitive.

Thozama Doni, General Manager at Teba Bank said: "Teba Bank, as a savings-led bank emphasises the need for savings before credit is granted.

"We realise that from time to time we all need to borrow regardless of income levels.

"Grow With Us Credit promotes responsible borrowing if you can afford to repay the loan - so customers are not put at risk of indebtedness."

Customers who have a savings history with other banks will also be able to apply for Grow With Us Credit, provided they meet all the criteria and are prepared to open a Grow With Us savings account once granted.

Teba Bank launched the Grow With Us savings account in 2001.

The savings account is open to anyone regardless of income and employment status.

Doni said: "Over the years our customers have constantly enquired about a credit facility, Grow With Us Credit is designed to specifically meet the needs of the low-income market.

"Our competitive strength lies in having obtained expertise in serving the low-income market exclusively for over 25 years."

Research indicates that people in low-income communities borrow money for unexpected emergencies; life cycle events such as marriage, death and retirement; school fees; to purchase assets; to ease cash flow or to start a small business.

Those who are self employed or unemployed find access to credit more difficult.

When they are able to access credit through informal lenders, they have to provide assets (such as a television set) until the loan is repaid.

People with IDs and payslips have easy access to credit with various formal lenders.