{"id":185191,"date":"2017-07-14T09:33:41","date_gmt":"2017-07-14T07:33:41","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=185191"},"modified":"2017-07-14T09:34:59","modified_gmt":"2017-07-14T07:34:59","slug":"sharp-drop-in-the-number-of-personal-loans-in-sa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/banking\/185191\/sharp-drop-in-the-number-of-personal-loans-in-sa\/","title":{"rendered":"Sharp drop in the number of personal loans in SA – survey"},"content":{"rendered":"

South African consumers are increasingly choosing to borrow money from their friends and families according to\u00a0Old Mutual\u2019s latest Savings and Investment Monitor report.<\/p>\n

The financial services firm sampled households in the main metropolitan areas of Johannesburg, Pretoria, Cape Town, Durban, Port Elizabeth and East London and Bloemfontein.<\/p>\n

The comprehensive household income sample ranges from less than R3,000 per month to more than R40,000 per month.<\/p>\n

The report noted a sharp year-on-year decline in the number of personal loans from financial institutions in 2017, down to 14% from 21% of all loans. This reflects the lowest percentage point in five years of surveys.<\/p>\n

The sharp drop in the number of people seeking loans from banks can be interpreted in a few ways: either consumers are actively moving away from banks as a source of funding – or the banks themselves are simply declining loans.<\/p>\n

With the country’s current economic woes, banks may not have confidence that consumers can repay their debts – forcing them to turn to other means.<\/p>\n

In comparison, the number of personal loans from family members has steadily increased over the past five years; despite showing a slight drop from 15% in 2016 to 13% in 2017.<\/p>\n

It should also be noted that as many as two thirds of South Africans are unbanked, and they make up a portion of those who lend from families\/friends or partake in stokvels and the like.<\/p>\n

The number turning to microlenders has also increased.<\/p>\n

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The statistics showed that the majority of loans were still less than R6,000; however, in line with the above statistics, there has also been a steady increase in the amounts being borrowed by family members, peaking in 2016.<\/p>\n

The one statistic that has seen a gradual decrease is the amount of time borrowers are taking to pay back their personal loans to families and friends. Old Mutual noted that this is likely a combination of lenders calling in loans earlier and borrowers choosing to loan the money or shorter periods of time.<\/p>\n

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Read:\u00a0The biggest banks in South Africa vs the world<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

South African consumers are choosing more and more to lend from their friends and families rather than their banks according to\u00a0Old Mutual\u2019s latest Savings and Investment Monitor report.<\/p>\n","protected":false},"author":10,"featured_media":89390,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[961,11121],"tags":[26,1110],"class_list":["post-185191","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","category-finance","tag-headline","tag-old-mutual"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/185191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=185191"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/185191\/revisions"}],"predecessor-version":[{"id":185279,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/185191\/revisions\/185279"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/89390"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=185191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=185191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=185191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}