Microloans grow slightly

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Feb 2007
South Africa, February, 19 2007 - THE average size of loans paid out by micro-lenders increased from R1664 at the end of August to R1801 at the end of November, the National Credit Regulator (NCR) said today.

In its latest overview of the industry, the NCR said the period also showed an 11,5% increase in money paid out in micro-lending.

"Rand value disbursements increased by 11,5% from R7,65bn to R8,5bn," it said in a statement.

"The number of loans disbursed increased by 3,1% from R4,6m to R4,7m."

"Although micro credit extension remains high, the annual growth rate has tapered off in the November period."

"Twelve-month growth in disbursements was 22% for the period ending November 2006 compared to a year-on-year growth rate of 29% reported for the 12 months ending August 2006."

The NCR noted that between August and November last year, pay-outs by private companies offering micro-lending increased by 19% from R3bn to R3,6bn.

"The retail sector, which makes up a significant portion of the private companies, was the main contributor to growth due to the end period of increased sales."

Co-operatives reflected a three percent decline in pay outs.

The NCR has taken over the responsibilities of the enforcement of the Exemption Notice to the Usury Act from the Micro Finance Regulatory Council.



 

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