Surge in Capitecs loan rescheduling

Following the analysis of Capitec’s most recent consumer stats, the bank has found that rescheduled payments have drastically increased, during the second half of the last financial year. According to Business Day, the bank recorded a jump of 75 % to R1.5 billion, from R884 million which was the figure in the previous year.

This free service offered by Capitec, allows consumers to extend their loan payment period, increasing the number of monthly repayments and decreasing their monthly repayment amount.

“Rescheduling is offered as a rehabilitation tool to clients who are in arrears and require relief on the instalment that they are paying towards their loan. The relief requirement may be short term of nature due to a temporary reduction in income (i.e. pregnancy) or a temporary increase in expenditure or a longer term requirement due to a more permanent change in the client’s profile.

“Similarly, clients who are not in arrears but may have a relief requirement, may apply for rescheduling,” explained Charl Nel, Capitec’s head of communications, marketing and corporate affairs.

Is this available to all? 

“Rescheduling is available to all clients but is governed by rescheduling rules, which determine whether a client is allowed to reschedule. The months by which a loan’s remaining term can be extended is also different for Capitec’s product range,” highlighted Nel.

The facility is also not specific to a loan amount.

“Capitec offers rescheduling where it is the appropriate rehabilitation or pre-delinquent prevention mechanism for a client,” Nel added.

What does Capitec attribute the surge to? 

Capitec has in recent times improved its engagement and treatment with and of arrears and non-arrears clients.
“The focussed increase in higher margin/higher arrears short term loans also partially lead to increased arrears rescheduling,” noted Nel.

Is loan rescheduling advisable? 

It is advisable only if it is found to be in the client’s interest, and if the record of payment post the rescheduling agreement is acceptable, said Nel.