Publications
Partners
Johannesburg - The South African banking sector is on a mission to reassure potential home-owners and small businesses that credit are becoming more available.
On Tuesday Standard Bank announced it had made "changes to its risk appetite" and will offer first-time home-owners loans of up to 104% of the value of their properties, for mortgages up to R1m.
Peter Schlebusch, Standard Bank CEO for Personal and Business Banking South Africa said: "It is important that we support and provide access to finance to the lower end of the economic spectrum.
"People in this sector have been hardest hit by higher inflation, job losses and the general slowdown in the economy."
There was also good news for aspirant small business owners.
Last week Absa Small Business announced it had increased its Khula lending limit for start-up businesses from R100 000 to R350 000.
This was joined by an announcement from the Masisizane Fund and Old Mutual Foundation that it had launched a joint initiative to assist small business owners with financial and non-financial support.
"Entrepreneurs should enjoy increased success when applying to institutions like Masisizane for funding and other business support. The process of evaluating applications will be shortened, and the long-term sustainability of the enterprises improved," said Masisizane CEO Charmaine Groves.
While the credit taps may be opening up, borrowers would do well to remember the sombre tone of the banking chiefs of Nedbank, Standard Bank and Absa who have all recently reported financial results.
Both Nedbank and Absa were wary about rising bad debt in the business sector, warning it may continue to rise until the second half of 2010.
- Fin24.com
