Loan applications increase
First National Bank (FNB) said that it has recorded a substantial increase in the number of loan applications submitted after the festive season, with vehicle or asset finance as well as personal and study loans being the most common.
According to FNB’s manager of corporate communications, Dawn Humphries, the rise in applications for loans can be attributed to the fact that most people are seeking funds to cover the cost for school fees as well as get back to work after the festive season.
“After the great indulgence it seems as if many are now looking at ways and means to cover up their over-spending and to try and get out of debt,” Humphries said.
“There is also a demand for home loans, however, Windhoek is known to be very “pricey” when it relates to properties, so the take up is not as high,” she added.
Herman Reinders, area manager for the Windhoek central area at FNB, said that the “credit crunch” experienced from 2008 to 2010 had a definite spill over into 2011. The appetite for risk is still high amongst consumers.
In order to avoid debt, Humphries advised the bank’s clients to start saving earlier this year in order to avoid accumulating debt during the holidays.
“It is imperative that we try and encourage a culture of saving amongst Namibians. We are well aware that debt is too easy to come by and would also like to heed the call of government towards encouraging our people to save rather than become indebted.”
The bank also advices its clients to arrange for monthly savings with one of the savings products offered by the bank. This include the unit trust, 32 day account or the ‘bank your change’ option.”