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June 2002
Standard Bank offers loans to fortnightly paid workers
Workers who are paid fortnightly are now able to apply for a microloan from Standard Bank.
Until recently the bank did not have the ability to finance fortnightly paid customers as the repayment was based on salary frequency. It was financing weekly and monthly paid customers only.
The new option provides customers with access to formalised lending at competitive rates.
Of the nine banks registered with the Micro Finance Regulatory Council (MFRC), Standard Bank and its joint venture partner African Bank are the only banks that now offer a fortnightly payment option.
Customers can repay their loans, which range from R1000 to R6250, over 12, 15, 18 or 24 months. Instalments are deducted from customers E Plan accounts every two weeks.
"We are confident that this new payment option will result in a positive increase in our microlending book. In addition, it will allow customers to better manage their expenditure," says Adrian Harris, Director Microlending and SMME, at Standard Bank.
Since entering this market about 19 months ago, through its joint venture with African Bank, Standard Bank has granted loans in excess of R300 million. It grants about 6 000 new loans a month.
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