African Bank Vehicle Finance

African Bank Vehicle Finance

African Bank is one of South Africa’s major banking institutions. For a number of years the bank has been providing consumers with range of services designed to help them with any of their banking needs. The bank’s services range from transactional services to loan services. 

For a number of years, African Bank has been providing tailor-made credit solutions to financing new or used vehicles. African Bank has been offering vehicle asset finance on an unsecured lending basis.

According to CEO Brian Riley, this will no longer happen. Mr Riley told BDLive: “We have definitely scrapped that part of the business. We felt we were targeting the bottom end of the market.”

Why has the bank made this decision regarding African Bank Vehicle Finance?

According to analysts, the bank was badly affected by its customers not being able to repay their loans, which were extended due to lax lending criteria.

African Bank was one of South Africa’s biggest unsecured lenders. Recent reports have stated that the extent of the losses were larger than initially stated.

Former CEO Leon Kirkinis followed a policy of only writing off bad debt after four months of failed instalments.

Through a network of over 30 branches nationwide, individuals seeking credit solutions had access to simple African Bank Vehicle Finance solutions.

African Bank strived to provide “Credit that works for you,” for its clients.

If you were looking for vehicle finance, you could get up to R240 000 at selected approved African Bank dealers nationwide. Repayment terms were flexible and reasonable – you could get up to 84 months to repay the loan.

Another drawcard was that this amount was much higher than what many other lenders are willing to provide.

Momentum Wealth portfolio manager Wayne McCurrie said: “African Bank clearly was a reckless lender towards the end and management should shoulder the blame.”

Categories: Vehicle finance